Aba Power Seeks 123% Electricity Tariff Increase to Offset Operational Losses

1 week ago 14

Aba Power Limited (APLE) has proposed a significant hike in electricity tariffs for its franchise area, seeking an increase of 123.33% from January 1, 2025.

The request, made during a public hearing organized by the Nigerian Electricity Regulatory Commission (NERC) in Abuja on Tuesday, has raised concerns about the potential impact on the cost of living and business operations within Aba and its nine local government areas.

The company, which is a subsidiary of the Geometric Power Group, provides electricity to over 156,000 customers in Aba, Abia State.

APLE has stated that the current tariff of N223.12 per kilowatt-hour (kWh) for Band A-Non-Maximum Demand (Non-MD) customers is no longer sustainable.

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The company argued that it can no longer efficiently and reliably supply electricity at the current rates due to rising operational costs, inflation, and its inability to cover the increasing price of power from generation companies.

Under the proposed changes, the tariff for Band A-Non MD customers would rise from N223.12/kWh to N263.08/kWh, while tariffs for other categories, including Band B and Band C, would also see similar increases.

For instance, Band C-Non MD customers would pay N216.47/kWh in 2025, up from N183.59/kWh in 2024. Similarly, the tariff for Maximum Demand (MD) customers would jump by over 100%, with some bands like MD1 in Band A seeing rates climb from N107.50/kWh to N240.09/kWh.

Managing Director of APLE, Ugo Opiegbe, explained that the proposed increase is essential for the company to meet its operational costs, particularly with the soaring invoices from the Niger Delta Power Holding Company (NDPHC).

He disclosed that APLE’s current debt to NDPHC exceeds N26 billion due to an increase in monthly electricity charges, which has escalated to N1.5 billion.

“Our operational cost has increased astronomically since the last tariff,” Opiegbe said. “When we signed the power purchase agreement with NDPHC in 2022, the tariff was N21 per kWh. Today, the invoice we received was N136 per kWh.”