Aba Power Limited Electric (APLE) has formally applied to the Nigerian Electricity Regulatory Commission (NERC) for an upward review of electricity tariffs across its franchise areas, citing operational challenges driven by rising costs.
During a public hearing held in Abuja on Tuesday, APLE’s Managing Director, Ugo Opiegbe, presented the proposed tariff adjustments for various customer categories. The company plans to increase tariffs for Band A-Non MD from N223.12/kWh in 2024 to N263.08/kWh in 2025 and for Band A-MD1 from N240.09/kWh in 2024 to N283.09/kWh in 2025.
The proposed rates for other bands include:
Band B: N213.74/kWh to N252.03/kWh (Non MD) and N233.13/kWh to N274.89/kWh (MD1)
Band C: N183.59/kWh to N216.47/kWh (Non MD) and N207.06/kWh to N244.15/kWh (MD1)
Band D and E: N148.14/kWh to N174.67/kWh (Non MD)
Rising Costs Driving the Request
Opiegbe attributed the need for the tariff adjustment to significant increases in the cost of generating and distributing electricity. He highlighted the impact of macroeconomic changes, including a sharp rise in wholesale energy costs.
“The cost of generation from the Geometric Power Aba Limited (GPAL) plant has escalated to N133.2/kWh, while the Niger Delta Power Holding Company (NDPHC) increased its invoices to APLE from N21/kWh to N136.26/kWh. This disparity has made it practically impossible for us to sustain operations,” Opiegbe explained.
The proposed tariff review, he added, is essential for recovering costs, maintaining operations, and investing in infrastructure improvements to enhance service delivery.
NERC’s Response
NERC Vice Chairman, Musiliu Oseni, acknowledged the financial strain on electricity distributors but emphasized the importance of balancing consumer interests with operational realities.
“The commission will critically review the parameters behind these proposals to ensure fairness and transparency. The ultimate goal is to create a system where improved service delivery justifies any tariff increases,” Oseni stated.
Oseni also stressed that consumer satisfaction is key, noting, “When customers are happy with the service, they are more willing to pay, which in turn supports the company’s performance and sustainability.”
The hearing underscores NERC’s commitment to fostering an equitable electricity market while addressing the challenges faced by service providers. A final decision on the tariff review will be made following a thorough assessment of APLE’s submissions.
