By Hassanat Adebowale
A legal practitioner, Festus Onifade, has urged the Minister of Power, Adebayo Adelabu, to halt plans to review electricity tariffs for customers in Bands A to E. He warned that proceeding with the review could amount to contempt of court due to a pending case challenging the tariff structure and price hike.
In a letter dated March 6 and addressed to the minister, Onifade reminded Adelabu of an ongoing suit at the Federal High Court in Abuja. Filed in April 2024, the case questions the legality of the electricity tariff hike for Band A customers and the classification of consumers into bands.
The controversy arose after Adelabu, on February 27, announced plans to adjust electricity tariffs. He described the current system as unjust, noting disparities in rates between Bands A and B. Band B customers, who receive 17 to 18 hours of electricity daily, pay N63 per kilowatt-hour, while Band A customers, with slightly more supply, are charged N209 per kilowatt-hour.
“We believe it’s not fair. It is not just, and we must carry out some level of regularisation,” the minister said during the announcement.
In response, Onifade called for a halt to the review until the court rules on the matter. “Maintaining the status quo is necessary to preserve the court’s integrity, uphold the rule of law, and protect the rights of consumers,” he stated in his letter. He emphasized that acting on the proposed tariff review while the case is ongoing could undermine the judicial process and harm consumers.
Onifade had filed the lawsuit on behalf of himself and residents of Maitama, Asokoro, and Aso Villa, classified as Band A customers. The suit, marked FHC/ABJ/CS/492/2024, names the National Electricity Regulatory Commission (NERC), Abuja Electricity Distribution Company (AEDC), and the Attorney-General of the Federation (AGF) as defendants.
The legal action also accuses NERC of discriminatory practices, alleging that customers in less-privileged areas are placed in Bands B, C, D, and E, with limited electricity supply and lower tariffs. Onifade argued that this classification violates the rights of customers and was implemented without proper consultation with distribution companies.
The plaintiff is asking the court to declare the band classification and resulting tariff hikes unconstitutional. Justice Inyang Ekwo has scheduled the hearing for March 17 to address the issues raised in the case.
GI’s Legal Corner
Disregarding a pending court case can amount to contempt, as courts have repeatedly stressed the importance of preserving the subject of litigation.
Section 6(6)(b) of the 1999 Constitution grants the judiciary the authority to resolve disputes, and any action that undermines a pending court decision could be seen as a challenge to judicial independence.
When it comes to regulatory issues, the Electric Power Sector Reform Act (EPSRA) gives NERC the power to set electricity tariffs. However, this authority isn’t unlimited, it must adhere to constitutional principles of fairness and non-discrimination.
The outcome of this case could play a pivotal role in shaping how regulatory power is balanced with protecting consumer rights and upholding the rule of law.
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