Court Stops Ikeja Electric, NERC From Hiking Tariff On ‘Band A’ Feeders

The Federal High Court in Lagos has granted an interim injunction restraining Ikeja Electric PLC and the Nigerian Electricity Regulatory Commission (NERC) from implementing a controversial tariff increase on “Band A” feeders.

The court’s decision comes after Rida National Plastics Limited filed an ex-parte application challenging the tariff increase, which was published by Ikeja Electric on April 4, 2024, and May 6, 2024.

Justice Chukwujeku Aneke ruled in favor of Rida National Plastics, holding that the tariff increase violates Section 51 of the Electricity Act, 2023.

The injunction restrains Ikeja Electric and NERC from applying, administering, and/or implementing the purported tariff increase on Rida National Plastics’ electricity supply.

Additionally, the court temporarily restrained the defendants from imposing a payment of N20 million on the plaintiff, being the balance payable on the purported electricity bill dated May 4, 2024.

The court also barred Ikeja Electric and NERC from intimidating and threatening to disconnect or actually disconnecting Rida National Plastics’ electricity supply for non-compliance with the purported tariff.

The suit has been adjourned until July 9, 2024, for further hearing.

This development is a significant victory for Rida National Plastics and a setback for Ikeja Electric and NERC.