The Nigerian Electricity Regulatory Commission (NERC) has appealed against the judgement of a Federal High Court sitting in Lagos which declared as illegal the electricity tariff currently used in Nigeria by the 11 electricity distribution companies.
Acting Executive Secretary of the commission, Anthony Akan, described the ruling as a major setback on the progress made in the country’s electricity sector.
He added that while the commission respects the decision of the court, it would appeal the judgement because it represents a reversal of the commercial foundation on which power supply contracts in the sector were built.
Mr Akah said that the commission was dissatisfied with the judgement because it impinges on the ultimate destination of the power sector as a commercialized electricity market.
He explained, “The ultimate destination of a commercialized electricity market is to achieve stability and adequacy in the supply of electricity to satisfy the yearning of Nigerians for adequate, safe and reliable electricity supply.”
According to him, the multi-year tariff order which the judgement effected provides a long term path of determining in advance, what the tariff will look like and based on that a lot of improvement in the sector were recorded and are in progress.
