Mohammed Shosanya
Aba Power Limited Electric(APLE),Tuesday commenced moves for an upward review of tariff in its franchise areas with the Nigerian Electricity Regulatory Commission (NERC).
The company maintained that rising generation costs and economic factors necessitate this adjustment to maintain service quality and infrastructure investment.
Speaking at the NERC hearing for the application for extraordinary tariff review in Abuja on Tuesday,the Managing Director, Aba Power, Ugo Opiegbe,said the current tariff is no longer sustainable and is affecting its ability to provide efficient and reliable electricity supply to its customers.
According to him,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.
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,he added.
He said,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.
He also said,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.
He maintained that the cost of generating and distributing electricity has increased significantly,due to the recent changes in macroeconomics parameters in the country.
According to him,a review of the tariff would enable it to recover its costs and invest in improving the electricity infrastructure, which would ultimately benefit consumers.
He also said the unforeseen changes in macroeconomic parameters such as increasing generation cost and investment without commensurate return is the reason for the rate review.
He added:“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.
“The 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,” Mr Opiegbe said.
Also speaking,the NERC Vice Chairman, Musiliu Oseni, reiterated the commission’s commitment to balancing the interests of consumers and service providers.
He added:“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”.
