Abia State: Reasons we increased electricity tariff – Aba Power

Aba Power Limited, Aba, Abia State, has said it increased its tariff to meet up with the rising cost of operation to provide efficient service to its customers in Aba and environs.

The company disclosed that it was granted regulatory approval to increase its tariff by the National Electricity Regulatory Commission,NERC, on December 30,2024.

It, however, explained that the tariff adjustment reflects the realities of of operating in an economy where inflation,foreign exchange rates and operational costs are rising.

Aba Power also lamented that it is battling with the problem of vandalism and sabotage of its facilities in Aba and environs and called for the support of the government and power consumers to check the trend.

Managing Director of Aba Power Limited,APL, Barr. Ugochukwu Opiegbe,

stated that while other Discos implemented upward tariffs as far back as April 2024, Aba Power kept its rates unchanged for over 8 months and maintained the lowest tariff within its service area.

Opiegbe also noted that unlike legacy Discos ,Aba Power is privately owned and does not receive government subsidies and interventions, as its operations are fully funded by the revenue it generates.

While noting that Aba Power’s decision not to change its rates in the last 8 months, underscored its commitment to shield its customers from the full brunt of economic pressures, Opiegbe also stated that the company empathizes with the financial challenges faced by its customers.

He said;”,Aba Power Electric Company is a fully privately owned and independent electricity distribution company. In line with the regulatory framework establishes by the NERC, we received the order for tariff adjustment on December 30,2024 with an effective date of January 1,2025.

“Prior to the adjustment,we called for three days of customer engagement to discuss the subject. Unlike legacy Discos, Aba Power does not receive any government subsidies or interventions. As a result,the tariff we charge is entirely cost reflective and directly linked to the actual costs of power generation, distribution and other.While other Discos implemented upward tariff adjustments as far back as April 2024, Aba power kept its rates unchanged for over 8 months, maintaining the lowest tariff within our service area.

“As a privately owned Disco, Aba power operates independently without access to government subsidies. This means our operations are fully funded through the revenue we generate,making our tariff a true reflection of the economic realities. We bear the cost of power procurement, operational expenses and financial obligations. We are also victims of the current economic reforms and we empathize with the financial challenges being faced by our customers.

“We have been importing power from the grid due to lack of reliable gas supply. The wholesale tariff we have been for power importation from the NDPHC since inception reached N136/kwh while our highest tariff to customers up to December 2024 was N117/kwh. This led to a deficit. We need to purchase spare parts from abroad and service our Dollar denominated loans. The exchange rate shift from N416 to N1,700 has significantly increased our operational costs and impacted our ability to repay our loans. Unlike other Discos, Aba Power independently operates without government support.”

On alleged estimated billing of its customers, Opiegbe stated that billings of power consumers are guided by NERC regulations on what it described as capping method.