ABA DISCO DECLARES PLAN TO HIKE ELECTRICITY TARIFF
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The Nigerian energy Regulatory Commission, or NERC, has received an application for an increase in energy rates from Aba Power Limited Electric, or APLE.
This was revealed by Aba Power’s managing director, Ugo Opiegbe, during his presentation of the company’s application during a NERC hearing in Abuja on Tuesday.
For band A-Non MD, the business is suggesting raising the rate from N223.12 kWh in 2024 to N263.08 kWh in 2025.
The Disco also plans to increase its 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.
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 and N163.46/kWh in 2024 to N192.74/kWh in 2025 for D-MD1.
“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 N21/kWh 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 stated while explaining the need for the proposed hike.
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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