Aba Power Limited Electric (APLE) has applied to the Nigerian Electricity Regulatory Commission (NERC) for an upward review of electricity tariff in its franchise areas.
It said that the current tariff is no longer sustainable for its operation.
According to Ugo Opiegbe, managing director, Aba Power, who presented the application of the company at the NERC hearing in Abuja on Tuesday, the company proposes tariff increase from N223.12/kWh in 2024 to N263.08/kWh in 2025 for band A-Non MD.
It also plans 240.09/kWh in 2024 to N283.09/kWh in 2025 for Band A-MD1, and N245.20 in 2024 to N289.11 in 2025 for A-MD2.
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Also, the company proposes N213.74/kWh in 2024 to N252.03/kWh in 2025 for Band B-Non MD; N233.13/kWh in 2024 to N274.89/kWh in 2025 for B-MD1; and N237.71/kWh in 2024 to N280.29/kWh in 2025 for B-MD2.
For C-Non MD, the company proposes N183.59/kWh in 2024 to N216.47/kWh in 2025; C-MD1 N207.06/kWh in 2024 to N244.15/kWh in 2025; and N208.89/kWh in 2024 to N246.31/kWh in 2025 for C-MD2.
It equally proposes N148.14/kWh in 2024 to N174.67/kWh in 2025 for D-Non MD; N163.46/kWh in 2024 to N192.74/kWh in 2025 for D-MD1.
The DisCo also proposes N148.14/kWh in 2024 to N174.67/kWh in 2025 for E-Non MD; N163.46/kWh in 2024 to N192.74/kWh in 2025 for E-MD1; and E-MD2 respectively.
Opiegbe explained that the cost of generating and distributing electricity has increased significantly due to the recent changes in macroeconomics parameters in the country.
It noted that a review of the tariff would enable it to recover its costs and invest in improving the electricity infrastructure, which would ultimately benefit consumers.
“There is a need to incorporate changes in macroeconomic parameters and indices, which affect the quality of service, operations and sustainability of our company business.
“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 N21kwh to N136.26/kWh.
“Cost of generation from the Geometric Power Aba Limited (GPAL) plant is N133.2/kWh. The cost has continuously increased, making it practically impossible for us to sustain impact. It’s so difficult for us because 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,” Opiegbe further said.
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In his remarks, Musiliu Oseni, NERC vice chairman, reiterated the commission’s commitment to balancing the interests of consumers and service 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. So when your customers are happy, they will be willing to pay more to you, so that you can also improve on your operational performance. I think that aspect, we need to look at it critically.
“It’s quite good that you already concluded the process. Before we allow your cost to be passed on to the end user, we will have to look at it and see the problems it might cause or otherwise. This hearing is part of our effort to ensure that any tariff review is fair and reflects the realities on the ground. We will carefully review the submissions made here today before making a final decision,” he said.
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