Aba Disco announces plan to increase electricity tariff

Aba Power Limited Electric (APLE) has submitted an application to the Nigerian Electricity Regulatory Commission (NERC) seeking approval for a tariff increase. 

Ugo Opiegbe, Managing Director of Aba Power, presented the proposal during a NERC hearing in Abuja on Tuesday, December 10.

The company plans to raise electricity tariffs across various consumer categories starting in 2025. For Band A-Non MD customers, the rate is proposed to increase from N223.12/kWh in 2024 to N263.08/kWh in 2025. Similar hikes are planned for other categories, including Band A-MD1 and A-MD2, as well as for categories under C and D classifications.

Opiegbe explained the rationale behind the proposed increases, citing rising costs from wholesale energy suppliers and generation plants.

“Niger Delta Power Holding Company (NDPHC) increased invoices for its wholesale energy cost to APLE from the NERC-approved Power Purchase Agreement (PPA) contract price of N21/kWh to N136.26/kWh,” Opiegbe stated. He added that costs from Geometric Power Aba Limited (GPAL) now stand at N133.2/kWh, which makes it unsustainable for the company to maintain operations without adjustments to retail prices.

Opiegbe further highlighted the discrepancy between wholesale and retail prices as a significant challenge. “The wholesale price is even higher than our highest retail price. That’s where we have found ourselves. That’s the major reason why we are here,” he said.

In response, NERC Vice Chairman Musiliu Oseni affirmed the Commission’s commitment to balancing the interests of consumers and electricity providers.

“The Commission would look critically at the parameters set by the company to arrive at the cost it proposed to ensure that customers benefit from it,” Oseni said. He emphasized the importance of customer satisfaction and operational efficiency, adding, “This hearing is part of our effort to ensure that any tariff review is fair and reflects the realities on the ground.” NERC will review the submissions made during the hearing before reaching a final decision on the proposed tariff adjustments.