BY AKUDORO GLORIA
Aba Power Limited Electric (APLE) on Tuesday submitted an application to the Nigerian Electricity Regulatory Commission (NERC) proposing for an upward review of electricity tariff within its franchise areas.
The company, had in early November organized engagement sessions across various locations in Aba for its customers regarding the proposed tariff review with clarity on the economic factors driving the tariff review including currency fluctuations and rising gas prices.
Speaking during public hearing which took place at the NERC’s headquarters in Abuja on the application submitted, the Managing Director of APEL, Barr. Ugochukwu Opiegbo restated that the current tariff is no longer sustainable as it is affecting its ability to provide efficient and reliable electricity supply to its customers.
According to the submitted application, the company is proposing tariff increase from N223.12/kWh in 2024 to N263.08/kWh in 2025 for band A-Non MD, 240.09/kWh in 2024 to N283.09/kWh in 2025 for band A-MD1, N245.20 in 2024 to N289.11 in 2025 for A-MD2.
Also, the company proposed 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, N237.71/kWh in 2024 to N280.29/kWh in 2025 for B-MD2.
For C-Non MD the company proposed 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.
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 and 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.
Opiegbo explained further that the cost of generating and distributing electricity has increased significantly, attributing the situation to the recent changes in macroeconomics parameters in the country.
He noted that a review of the tariff would enable the company to recover its costs and invest in improving the electricity infrastructure, which would ultimately benefit consumers.
His words, “The 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 is where we have found ourselves. That is the major reason why we are here,” Opiegbe said.
Responding, the NERC Vice Chairman, Musiliu Oseni, 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 whether 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 stated.