NERC protests reversal, says nationwide blackout looms

Operators in the power sector have faulted the court order which nullified the recent hike in electricity tariff, saying the outcome, if implemented would be a disaster - nationwide blackout.

Justice Mohammed Idris of the Federal High Court in Lagos had on Wednesday, July 13, ordered the immediate reversalof the 45 per cent increase in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC), describing it as irrational, irregular and illegal.

Speaking to newsmen in Abuja on Tuesday, July 19, the Executive Director, Association of National Electricity Distributors, Mr. Sunday Oduntan, said if the court ruling on the reversal of tariff in implemented, the effect would be disastrous to the sector and the overall economy.

According to Oduntan, the tariff implementation was initially meant to have commenced on November 1, 2013 when the sector was officially privatised, but was delayed till February 1, 2016.

He said the delay, which he blamed on the Goodluck Jonathan administration, has led to a huge funding gap that is in excess of N300 billion.

“Part of the agreement then was that the newly privatised industry would be given the appropriate tariff. In the performance agreement that was signed, that tariff was called cost-reflective tariff, which simply means appropriate pricing for the product. But the problem that we have had ever since then is that two and half years down the line, the government has not fulfilled its pledge,” Oduntan said.

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The Discos and NERC have, however, appealed the judgement and also seeking a stay of execution of the court judgment.