Nigerian Electricity Regulatory Commission (NERC) has described the judgement reversing electricity tariff in the country, which became operational on February 1, as a setback to the electricity sector, saying it will appeal the judgement.
Power “We will challenge this decision. We have instructed our lawyer to appeal. Consequently, the Commission has filed for stay of execution and a notice of appeal of the judgement,” NERC stated.
Speaking at a media briefing in Abuja, the Acting Chairman of NERC, Dr. Anthony Akah, said though the Commission respects the judgment, “but we are dissatisfied because it represents the reversal of the commercial foundation upon which contracts for gas, hydro, coal and solar feedstock for the production of electricity have been predicated.”
According to him, the ultimate destination of a commercialised 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. “We understand that private power production and distribution is a relatively new in Nigeria and that development such as this court ruling must be seen in that context as the laws begin to face judicial tests of interpretations.
“We believe that ultimately everybody and all institutions will come to better understanding of the values of the choice we have made as a nation to privatise the power sector,” Akah maintained. Calling on investors and customers in the electricity market not to panic, NERC boss pointed out that a resolution is being sought within the ambit of the established laws.
He asserted that the Commission remain committed to continuously provide the right regulatory framework that would promote private sector investment in the electricity supply industry and also protect the interest of the electricity customers as enshrined in the Electric Power Sector Reform Act 2005.
It would be recalled that on July 13, Justice Mohammed Idris of the Federal High Court in Lagos, in his judgement, declared the electricity tariff regime which became operational on February 1, 2016 as illegal.