Aba Power Seeks Tariff Hike Amid Rising Operational Costs

Aba Power Limited Electric (APLE) has applied to the Nigerian Electricity Regulatory Commission (NERC) for an upward review of electricity tariffs in its franchise areas, citing escalating operational costs.

At a public hearing held by NERC in Abuja on Tuesday, APLE’s Managing Director, Ugo Opiegbe, presented the company’s proposal, which includes adjustments to tariff rates across multiple consumer bands for the 2024–2025 period.

For Band A-Non MD, the company plans to increase tariffs from N223.12/kWh in 2024 to N263.08/kWh in 2025, while Band A-MD1 and A-MD2 tariffs would rise from N240.09/kWh to N283.09/kWh and N245.20/kWh to N289.11/kWh, respectively.

Similar adjustments are proposed for other consumer categories:

Band B-Non MD: N213.74/kWh (2024) to N252.03/kWh (2025)

Band B-MD1: N233.13/kWh (2024) to N274.89/kWh (2025)

Band B-MD2: N237.71/kWh (2024) to N280.29/kWh (2025)

Band C-Non MD: N183.59/kWh (2024) to N216.47/kWh (2025)

Band C-MD1: N207.06/kWh (2024) to N244.15/kWh (2025)

Band C-MD2: N208.89/kWh (2024) to N246.31/kWh (2025)

Band D-Non MD and D-MD1: N148.14/kWh and N163.46/kWh in 2024 to N174.67/kWh and N192.74/kWh in 2025

Band E-Non MD and E-MD1/2: N148.14/kWh and N163.46/kWh in 2024 to N174.67/kWh and N192.74/kWh in 2025

Opiegbe explained that the proposed increases are necessary to address the rising costs of electricity generation and distribution, driven by changes in macroeconomic parameters. He highlighted that the wholesale energy cost from Niger Delta Power Holding Company (NDPHC) has surged from N21/kWh to N136.26/kWh, while the cost of generation from Geometric Power Aba Limited (GPAL) now stands at N133.2/kWh.

“These rising costs make it practically impossible for us to sustain operations, as the wholesale price is now higher than our highest retail price,” Opiegbe said. He added that the tariff adjustment would help APLE recover costs and fund critical infrastructure improvements to benefit consumers.

Responding, NERC Vice Chairman Musiliu Oseni stressed the commission’s commitment to protecting consumer interests while ensuring service providers remain viable.

“We will critically review the parameters set by the company to ensure fairness. When customers see improvements in service quality, they will be more willing to pay higher tariffs. However, any tariff review must reflect the realities on the ground without imposing undue burden on consumers,” Oseni said.

The commission assured stakeholders that a thorough review process would precede any approval of the proposed tariff hike.