Energy litigation cut across the whole aspect of oil and gas, electricity generation and distribution etc. The writer will examine energy litigation in areas of oil and gas and electricity in Nigeria.

Energy litigation in the oil and gas industry

The Nigerian Courts have awarded damages against polluters. In the case of Shell Petroleum Development Co. Nig. Ltd v Farah, the Court of Appeal awarded compensation to the respondents for the oil spill that affect their in environment as a result of the activities of the Applicant (Shell). Similarly, the Supreme Court in Texaco Panama Inc. v. Shell Petroleum Development Company Nig. Ltd held that warned against violation of legislations for the protection of the environment. In another celebrated case of Jonah Ggemre v. Shell BP Petroleum Dev. Ltd, the plaintiff for himself and on behalf of the Iwkerekan community of Delta State, brought and an action against the defendant for violation of their right to life and healthy environment because of the defendant’s oil activities. The Court held in favour of the plaintiffs and awarded general damages against the defendant. See also cases of Edhemowe v. Shell; Chief Amanka v. Shell;  Onoyom v shell; ELF Nigeria v Silo, etc.

Energy litigation in Electricity

Most electric consumers are not aware of their rights claim damages from electric power operators. It is common placed to find extreme damages caused by supply of high voltage by electricity supply companies. In the case of National Electric Power Authority v. Mudasiru Amusa & Anor. The Supreme Court affirmed the right of an electricity consumer to claim for compensation for Injurious Affection of Land against an electricity transmission company who renders his land useless and unsuitable for further development by the erection of powerful transmission lines. See also, Orhue v. NEPA.

The existence of the right to claim damages and compensation for losses occasioned by high voltage supply was recognized in the case of NEPA v. ALLI & ANOR,  where the 1st plaintiff established and installed an ultra-modem Sawmill Factory at the Industrial Area in Ogun State. The defendant's transformer at Ijebu-Ode due to its negligence went into flames. The fire from the transformer spread to the 1st plaintiff's factory and destroyed all the machines and machineries. The Supreme Court held that electricity is a very dangerous thing being handled and carried by the appellant. If it should escape, it owed a duty to the consumers to exercise reasonable care and skill that the consumers should not be damaged.

Unlawful Disconnection of power

Recent cause for litigation in the electricity have majorly resulted from claims of unlawful disconnection of power supply by distribution companies. In the case of Jos Electricity Distribution Plc v. John; the Respondent claimed that the Appellant did not issue him the required statutory notices before disconnecting his light in line with the Commission’s procedure for connection and disconnection of electricity. The Court of Appeal held that it is a statutory duty placed on the Appellant to issue the Respondent with the relevant notices and in the prescribed manner before proceeding to disconnect his light. See also,  Jos Electricity Distribution Plc v. John.

The court in recent times has also had cause to intervene in cases of harsh directives or regulation given by the Nigerian Electricity Regulatory Commission. In the case of Ibadan Electricity  Distribution Company Plc & 7 Ors v. Nigrian Electricity Regulatory Commission where the the court ruled that the NERC acted ultra vires by v issuing Regulation 18 of the Electricity Industry (Enforcement) Regulations, 2014 which empowered the NERC to alter the board composition and management of Nigerian power sector licensees, a right reserved by statute for shareholders.

Estimated billing and seizure of electric cables

Apart from unlawful disconnection, other illegal actions of power distribution companies include Estimated billing and seizure of a consumer’s electrical wires and cable upon disconnection. In the case of Evangelist Alfred Bassey v. PHCN & Anor, the court expressly stated that a consumer of electricity cannot be billed for the electricity he did not consume. The NERC also provides a direct complaint form for excessive estimated billing. Again the court has had deprecated the act of seizing a consumers electrical wire as unlawful and issued damages against distribution companies for same.

Notably, claim for damages is restricted to cases of loss arising from high voltage and not discontinuance of electricity (Amadi & Ors v. Essein).