Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders - Politics - Nairaland
Nairaland Forum › Nairaland General › Politics › Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders (919 Views)
| Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders by TheFreeOne(op): 9:25am On Feb 16, 2016 |
The Federal High Court sitting in Lagos has warned the Federal Government and the Distribution Companies (DISCOs) not to disobey subsisting court orders on electricity tariff. The court also warned the government not to act in a way that showed disdain for the court in a constitutional democracy. Presiding Justice, Mohammed Idris, gave the warning while ruling in a suit filed by a lawyer and rights activist, Toluwani Adebiyi, over the recent hike in electricity tariff on Monday. Justice Idris fixed Friday, February 19 to hear an application by the Nigerian Electricity Regulatory Commission (NERC) seeking a stay of proceedings in the suit. The judge fixed the date after listening to the arguments of lawyers representing parties in the matter over the order in which pending applications should be taken by the court. Mr Adebiyi filed a suit seeking a perpetual injunction restraining NERC from implementing any upward review of electricity tariff without significant improvement in power supply for at least 18 hours a day in May 2015. He also wants an order restraining NERC from foisting compulsory service charges on pre-paid meters until “the meters were designed to read charges per second of consumption and not a flat rate of service not rendered or power not used.” Multiple Long-term Financing Approach Mr Adebiyi wants the service charge on pre-paid meters not to be enforced until there is visible efficient and reliable power supply like those of foreign countries where the idea of service charge was borrowed. He further asked for an order of court mandating the NERC to do the needful and generate more power to meet the electricity use of Nigerians, emphasising that the needful should include and not limited to a multiple long-term financing approach, sourced from the banks, capital market, insurance and other sectors of finance to power the sector. Throat-cutting Bill The lawyer also asked the court to mandate the NERC to make available to all Nigerians within a reasonable time of maximum of two years, prepaid meters as a way to stop the throat-cutting indiscriminate estimated bill which must be devoid of the arbitrary service charge, but only chargeable on power consumed. In an affidavit in support of the suit personally deposed to by the applicant, the lawyer lamented that despite the motto and mission of NERC which were expressly stated as “keeping the lights on and to meet the needs of Nigeria for safe, adequate, reliable and affordable electricity,” most communities in Nigeria do not get more than 30 minutes of electricity supply, while the remaining 23 hours and 30 minutes were always without light and in total darkness. “Nigeria’s poor masses are paying an estimated and indiscriminate residential bill ranging from 5, 000 Naira to 18, 000 Naira, spending an average of 15, 000 Naira to 20, 000 Naira for fuel to maintain generating set. “Businesses had collapsed, industries had closed down, and residents cannot sleep comfortably at night due to inefficiency of our power industry. “Companies and commercial houses are groaning under throat-cutting power bill which they are paying for, yet not getting the benefit for such payment,” Adebiyi stated. Poor Power Supply He stressed that the proposed increase in electricity tariff came amidst the tangled web of poor power supply with no reasonable proof of improvement. “The situation is self evident, it readily speaks for itself because everyone is suffering from poor power outrage. “Bringing further increase amidst this tangled web of hardship and without any improvement in power supply will be highly unjustifiable and will be an economic burden on Nigeria populace. It is totally absurd and not for the good of the people and therefore must be stopped,” Adebiyi submitted. Justice Idris had made an order directing parties to maintain status quo and for NERC to suspend all actions relating to any increment in electricity tariff pending the hearing and final determination of the suit. But while the suit was pending, NERC in conjunction with the Electricity Distribution Companies commenced the implementation of the new electricity tariff on February 1. Protests by labour unions had since trailed the new power tariff. At the proceedings, the plaintiff drew the court’s attention to an application seeking to commit the NERC’s Chairman and the CEOs of the Distribution Companies (Discos) to prison for allegedly flouting the order. But NERC’s lawyer, Chief Anthony Idigbe (SAN), said he had filed an appeal against the order by Justice Idris. He also said he had a pending application for a stay of the proceedings pending the determination of the appeal. Mr Idigbe mentioned that the plaintiff had not effected service of the contempt proceedings on the alleged contemnors. The two lawyers were divided on which application should be heard first. Mr Adebiyi said the contempt charge should be heard first since NERC had undermined the court’s authority, but Mr Idigbe said the application for stay of proceedings should take precedence since an appeal had been lodged. In a short ruling on the issue, Justice Idris, held that it was in the interest of justice to first hear the defendant’s application for a stay of proceedings pending the determination of their appeal against the court’s order. The plaintiff then asked for a short adjournment to enable him file his response to the application. Justice Idris subsequently adjourned till Friday for the hearing of the application for a stay of proceedings. http://www.channelstv.com/2016/02/15/electricity-tariff-court-warns-fg-discos-not-to-disobey-subsisting-orders/ |
| Re: Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders by Klamour: 9:44am On Feb 16, 2016 |
I doubt if the FG that has great penchant for disobeying Court orders will heed this warning. The new tariff is already implemented and Nigerians are buying at the increased rate. The best option is for the Counsel to commence Contempt Proceedings against all the Respondents, especially Chairman of NERC. |
| Re: Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders by TheFreeOne(op): 10:05am On Feb 16, 2016 |
The DISCOs seems in a hurry to recoup their investments and they found willing tool in NERC to fleece Nigerians despite poor power supply. The FG needs to tell us if it's too much to ask for prepaid meters before effecting new tariffs. I hope the courts will do justice to this daylight robbery by NERC & the DISCOs. |
| Re: Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders by Montaque(m): 10:30am On Feb 16, 2016 |
Good public interest litigation. |
| Re: Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders by Nelkoko: 10:41am On Feb 16, 2016 |
Minimum wage is 18k....... Make we cal u later..... Miss d followings 1.nepa bill 4k 2.transport to work 3k de pendin where u work. 3 . sch free 4 2 kids...... K 4.beer moni. How much remain? Make fash NO let me tell ma grand mum to pull shirt swear 4 him oo |
| Re: Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders by Amanwulu1(m): 11:11am On Feb 16, 2016 |
Court u are on ur own. Dis govt has no respect for court order. We are in trouble. |
| Re: Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders by ishiamu(m): 12:07pm On Feb 16, 2016 |
Klamour: |
| Re: Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders by omowolewa: 12:16pm On Feb 16, 2016 |
Masses are paying for the sins of the elites! When alert sounds, banks are there to feed fat on it in the name of 1% maintenance fee, Stamp duty, SMS charge, NEFT and NIP charges. You enter market t0 buy stuffs and hear everybody reminding you of dollar rise. Like as if that not enough, DISCOs and GENCOs proposed huge bill on our once commonwealth the government accept it just like that. |
| Re: Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders by Justiyke4u: 12:27pm On Feb 16, 2016 |
Nigerians are now taken for granted |
| Re: Electricity Tariff: Court Warns FG, Discos Not To Disobey Subsisting Orders by jpphilips(m): 2:41pm On Feb 16, 2016 |
The power companies need money to invest in the sector no doubt about that, power generation cost money, that does not still justify the increment at least till we all get meters. The Honorable Minister Fashola should explain to Nigerians how companies that lack the Financial muscle to invest in the electricity sector won those bids, It wasn't his administration but the realities on ground have necessitated a total probe of the bidding process. it's like selling an airline to a cab company then turn around and ask the passengers to pay more so that the cab company can buy a plane when it was pretty obvious ab initio that the cab company lacked the capacity to manage an airline. These companies were allegedly sold to cronies of former president Jonathan in a very dubious process, companies that lack the expertise and financials to run anything were given critical national assets to manage, the process was so shoddy that reputable world class companies like Manitoba was knocked off in favour of companies that had no idea the difference between + & -, are we still surprised why Barth Nnaji was eased out during the Alibaba process. The Acquisition process must be probed!! Before Nigerians are forced to pay more for services they never get, we need to look at two money spinning areas for the electricity companies. 1) Estimated billing 2) Fixed charge. Nigerians were charged a fixed charge of 750 naira from 2013 to the last day of 2015, if we take a DISCO like EEDC for example, EEDC monopolized 5 states (Anambra,Imo,Abia,Ebonyi and Enugu states), if we estimate an average of 50 million flats in these states, EEDC makes 750 X 50,000,000.that is a whooping 37.5b naira monthly or 900bn naira for 2yrs. If you have a bad substation (transformer), they will never spend 2m to replace it rather they will Refurbish it in 20cycles from one street to the other. KEPCO completed a 200MW power plant in the Philippines for $450m, with exchange rate of 155naira to a dollar (2013 when the DISCOS took over) that amounts to 69.7b naira. This has clearly shown us that a DISCO like EEDC has made enough money in 2yrs to build 13, 200MW power plant from fixed charge alone. Estimated Billing; A flat in my neighborhood pays 25k as monthly charge, an area that suffers 4hrs of electricity a day, now, if you do the maths with the worst type of electronics on earth, you will agree with me that a flat in my neighborhood should not consume more than 7k in a month. Subtract that amount from the 25k we pay, the DISCO is making another killing of 18k per flat, I am sure that it is the same with most estimated flats. Suppose half of EEDC customers are on estimated billing, on this fraud they make another 18k X 25m= 450b per month or 10.8T in 2yrs, let us give recurrent expenditure half of that amount, EEDC as a DISCO made 6.3T in two years, an amount that can build 78nos 200MW power plant. How can fashola convince me that they do not have the funds to invest in the sector to guarantee steady electricity for consumers? One of the least Power assets is a meter, a three phase meter retails in China for $80 quantity price, yet fashola thinks that a company sitting on 6.3T could not provide an $80 meter to justify the said increment? If at 6.3T they can not provide ordinary meter, how much more do we need to pay before a transmission line is replaced? Is this change?? |
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