· The issue of
DISCOs is the biggest scam, says Rep
By Innocent Anaba, Victor Ahiuma-Young & Johnbosco
Agbakwuru
A Federal High Court sitting
in Lagos, yesterday (13/7/2016), annulled the increment in electricity tariff
recently announced by the Nigerian Electricity Regulatory Commission, NERC.
Trial judge, Justice Mohammed Idris in his judgment in the
suit by a human rights lawyer, Mr. Toluwani Adebiyi, challenging the increment,
described NERC’s action as procedurally ultra vires, irrational, irregular and
illegal. In a swift reaction, labour applauded the judgment and asked NERC and
DISCOs to immediately respect the ruling, describing it as a “victory for the
ordinary Nigerian who had been crushed by exploitative bills.” These
developments came on a day the House of Representatives described the
Distribution Companies, DISCOs, as the biggest scam in Nigeria and called on
the Federal Government to halt any tariff by 100 per cent in the country.
On the judgement, the court, relying on Sections 31, 32 and
76 of the Electricity Power Sector Reform Act(EPSRA) 2005, in deciding the
substantive suit, held that, “NERC acted outside the powers conferred on it by
the Act and failed to follow the prescribed procedure.”The court said that
“NERC has not shown that it acted in due obedience to the prescribed procedures
and that there is no evidence that NERC complied with Section 76(6)(7)and (9)
of the EPSRA Act. “Of all the legal requirements, it appeared the only one
complied with by NERC was that it announced the new tariff in the newspapers.
It is clear from the affidavit evidence that the increase in tariff was done by
NERC in defiance of the order of this court made on May 28, 2015, which
directed parties in the case to maintain the status quo.
The law is that every person upon whom an order is made by
a court of competent jurisdiction must obey it, unless and until the order is
discharged and set aside on appeal.” The court consequently, held that,” The
tariff increase from July 1, 2015 was done in breach of the ‘status quo’ order.
NERC’s action, was therefore, clearly hasty, reckless and irresponsible. “This
country is in a democracy where the rule of law shall prevail over impunity or
whimsical desires. Anything to the contrary will be an invitation to anarchy.
It is the law that what is done officially must be done in accordance to the
law. Investors are free to do business in Nigeria but they shall abide by the
law of this country. Nigeria is not a kangaroo State. Nigeria is not a banana
Republic. It is intolerance and extremely dangerous for any branch of the
executive to create a posture it may not obey certain orders of the court. That
is tantamount to executive recklessness which will lead to lawlessness.”
Invoking its disciplinary jurisdiction, the court ordered:
“The increment in electricity tariff which took effect after the institution of
this action and while a restraining order is subsisting is, hereby, declared
illegal and same is hereby set aside. NERC is, hereby, directed to revevert to
the status quo and the commission is, hereby, restrained from further
increasing electricity tariff except it complies strictly with the relevant
provisions of the EPSRA.”
The sum of N50,000 was awarded in favour of the plaintiff.
Reacting to the judgement, organised labour applauded it and asked NERC and
DISCOs to immediately respect the ruling and revert to the old tariff without
further delay.
According to labour, the judgement is a “victory for the
ordinary Nigerian who has been crushed by exploitative bills.” Labour hails
ruling Speaking through the chairman of Nigeria Labour Congress, NLC, Ayuba
Wabba, Labour said: “We, at the Nigeria Labour Congress, wish to state that
this is a courageous judgment deserving of commendation. ‘’We also
consider it victory for the ordinary Nigerian who have been crushed by
exploitative bills. We urge NERC and DISCOs to obey the judgment and revert to
the old rates without further delay. We demand that the NERC and DISCOs observe
all the conditions precedent as contained in the sales agreement before any
increase is made.’’
DISCOs, biggest scam in Nigeria, says Reps
Meanwhile, the House of Representatives yesterday described
the Distributions Companies, DISCOs as the biggest scam in Nigeria and called
on the Federal Government to halt any plan to increase electricity tariff by
100 per cent in the country. This is just as the Majority Leader in the House
alleged that Electricity Distribution Companies didn’t have the financial
capacity and technical know-how to handle distributions of electricity in the
country.
The House in a resolution, after hearing a motion under
matters of urgent public importance sponsored by Aliyu Madaki, representing
Dala Federal Constituency of Kano State on the platform of the All Progressives
Congress, APC, said that the plan by Discos to increase electricity tariff from
N24 to N50 per kilowatt for residential consumers was not in the interest of
Nigerians. The lawmaker expressed worry that epileptic and erratic power supply
by distribution companies had persisted and affected both households and
commercial activities, adding that the planned new tariff would amount to
disobedience of an injunction by the Federal High Court, Lagos that had
restrained National Electricity Regulatory Commission, NERC, from any increase
in electricity tariff. He said: “I recall that in February 2016, NERC had
increased electricity tariff by 45 per cent with no correspondent result as the
electricity supply has dropped affecting both households and commercial
activities. “The planned 100 per cent increase in electricity tariff by NERC on
the request of distribution companies is illegal and abuse of court process.
“If the proposed hike in electricity tariff is not put on halt, its multiplying
effect on the economy and the social wellbeing of Nigeria cannot be
quantified.”
Contributing to the debate, the House Majority Leader, Femi
Gbajabiamila, said there was need to review the sale of DISCOs to private
individuals, noting that the companies lacked the financial and infrastructural
capacity to deliver quality services to Nigerians. Resolutions and court orders
he said: “The issue of DISCOs is the biggest scam; people are paying huge money
and DISCO are smiling to the banks without commensurate services. In other
countries, they do not privatize a large life wire of their economies. It is as
if somebody powerful somewhere is protecting the DISCOs, so this House must
remain resolute in finding out what gives the companies the effrontery to
disobey resolutions and court orders.”
Speaker of the House, Yakubu Dogara, who
presided over the plenary, told the Committee of Power to investigate the
matter. He also referred the matter to the ad hoc committee to investigate the
sale of power assets and also investigate the rationale behind the last
increase in electricity tariff by DISCOs which was not commensurate with their
investment in the power sector. * Source: Vanguard
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