The Nigerian Electricity Regulatory Commission (NERC) has rejected the order of the Federal High Court, Lagos, declaring the February 1 electricity tariff raise illegal.

Justice Mohammed Idris had on Wednesday ordered the Commission to immediately reverse the decision as the process that led to the new tariff regime did not follow due process.

But, acting chairman of the commission, Anthony Akah, said in Abuja on Friday that although the regulatory agency respected the decision of the court, it was dissatisfied with it.

He said the ruling represented the reversal of the commercial foundation upon which contracts for gas, hydro, coal and solar feedstock for the production of electricity were based.

“This judgment, in our view, is a major setback to the progress made so far in the electricity sector,” Mr Akah said. “Therefore, we will challenge the decision.”

He said the commission had already instructed its lawyers to file for a stay of execution of the order, while a notice of appeal of the judgment has been issued.

The association of electricity distributors had on Thursday appealed the court ruling.