Electricity Company Proposes 163% Tariff Increase Due to High Operating Costs
- Aba Power Limited has applied to the Nigerian Electricity Regulatory Commission (NERC) for an upward review of tariffs
- The company disclosed that the recent changes in economic dynamics in the country are responsible for the new proposals
- The company said it has witnessed an increase in the cost of distribution and generation of electricity
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Aba Power Limited Electric (APLE) has applied to the Nigerian Electricity Regulatory Commission (NERC) for electricity tariff review in its franchise areas.
The company disclosed that the present tariff is no longer sustainable for its operations.
Source: Getty Images
Breakdown of firm’s planned increase
APLE’s managing director, Ugo Opiegbe, disclosed on Tuesday, December 10, 2024, during the application presentation that the firm proposes a tariff increase from N223.12/kWh in 2024 to N263.08/kWh in 2024 for Band A-non MD.
He said the firm also plans to increase the tariffs for Band A-MD1 from N240.09/kWh in 2024 to N283.09/kWh in 2025 and Band A-MD2 from N245.20 to N289.11 in 2024.
It also proposes N21.74/KWh in 2024 to N252.03/kWh in 2025 for Band B, N233.13/kWh to N274.89/kWh IN 2025 for Band B, and N237.71/kWh in 20024 to N280.29/kWh in 2025 for Band B.
Aba Power plans to increase Band B's electricity rates from N213.74/kWh in 2024 to N252.03/kWh in 2024, from N233.13/kWh in 2024 to N274.89/kWh in 2024, and from N237.71/kWh in 2024 to N280.29/kWh in 2025.
It proposes N183.59/kWh in 2024 to N216.47/kWh in 2025 for Band C. Also, Band C consumers will pay N207.06/kWh in 2024 to N244.15/kWh in 2025.
APLE proposed N148.14/kWh in 2024 to N174.67/kWh in 2024 for Band D consumers, N163.46/kWh in 2024 to N192.74/kWh in 2025 for Band users.
Aba Power gives reasons for the proposed increase
The managing director revealed that the country's macroeconomic changes have increased generating and distribution costs.
He disclosed that reviewing tariffs would allow it to recoup its costs and invest in improving the electricity infrastructure, which would benefit consumers.
NERC Vice Chairman Musiliu Oseni stressed the commission’s commitment to protecting consumers and service providers' interests.
FG to begin free metre distribution
The development came as Bolaji Tunji, the special adviser to the Minister of Power on Strategic Communications and Media, said the Nigerian government has earmarked N700 billion from the federal account for the presidential metering scheme’s distribution of free metres.
Tunji stated that the scheme was on track to meet its aim of delivering two million metres annually.
He said procurement had begun, and N700 billion had been budgeted for the scheme.
FG orders DisCos to replace phased-out metres
Legit.ng previously reported that the Nigerian government had ordered DisCos to replace any metre being phased out due to upgrade.
The Nigerian government announced this via the electricity regulator, NERC.
The commission disclosed that despite the lack of an order to phase out Unister metres, a technical upgrade would soon cause them to stop working.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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