Aba Power Limited Electric (APLE) has submitted an application to the Nigerian Electricity Regulatory Commission (NERC) seeking approval to increase electricity tariffs in its franchise area by 123.33% starting January 1, 2025.
The proposal was presented during a public hearing organized by NERC in Abuja on Tuesday. APLE cited inflation, rising exchange rates, and high operational costs as key reasons for requesting the extraordinary tariff review.
If approved, the new tariff structure would see non-maximum demand customers in Band-A paying N223.12/kWh, up from N99.9/kWh. For maximum demand customers in Band-A (MD1), the rate would increase from N107.5/kWh to N240.09/kWh, while MD2 customers would face a hike from N109.79/kWh to N245.2/kWh.
These proposed rates would make Aba Power’s customers pay N35.7/kWh more than consumers served by other electricity distribution companies in Nigeria, according to NERC’s approved tariffs.
APLE, however, argued that it did not benefit from the minor tariff review granted to other distribution companies in December 2022.
Defending the proposed hike, APLE’s Managing Director, Ugo Opiegbe, explained that the increase is essential for ensuring improved and stable power supply to customers in Aba. He outlined the financial parameters supporting the application, including a 25% inflation rate, an exchange rate of N1,654.2 to the dollar, an average energy offtake cost of N135/kWh, and annual operational expenses of N189.6 billion. The company projects a revenue target of N227 billion for 2025.
Opiegbe stated that the majority of the power supply would come from the Aba Independent Power Plant, owned by Geometric Power, with additional supply from the Alaoji Power Plant, operated by the Niger Delta Power Holding Company (NDPHC).
NERC’s Vice Chairman, Musiliu Oseni, acknowledged the proposal during the hearing and stressed the importance of improving services to consumers. “When your customers are happy, they will be more willing to pay for better services. We must critically assess the implications of this proposed increase on consumers before making a decision,” he said.
The Commission assured stakeholders that it would carefully evaluate the application, considering industry factors and feedback from the hearing, before reaching a verdict.
