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From Isaac Anumihe, Abuja
Amid the outcry of unbearable tariff increase, Aba Power Limited Electric (APLE) is asking for a 163 per cent increase in electricity tariff.
The tariff, according to the electricity company, should be increased for Abia State customers from N99.90-kilowatts hour (KWh) to N263.08KWh in 2025.
APLE, which is owned by Geometric Power Group, is a ring-fenced distribution company that provides electricity to Aba metropolis, consisting of nine local governments in Abia State. The review would also lead to an increase in customers in other bands with Band A-MD1 increased to N283.09KWh from N107.50KWh and Band B-Non MD rising from N95.70KWh to N252.03KWh, among others.
Speaking at a public hearing organised by Nigerian Electricity Regulatory Commission (NERC) on the tariff review, today, in Abuja, Managing Director of APLE, Ugo Opiegbe, said that the tariff review is to enable it meet up with its operational cost with inflation impacting on its business.
According to him, its operational cost has increased astronomically since the last tariff increase was granted.
He said that the previous review pegged its tariff charge for Band Non-MD customers at N99.90KWh, which is below the bills it is receiving from electricity generation companies supplying its power.
“When we signed the Power Purchase Agreement (PPA) with the Niger Delta Power Holding Company (NDPHC) sometime in 2022, NERC approved a tariff of N21KWh. Today, the last invoice we got from NDPHC was N136KWh. That’s the conundrum we have found ourselves in. That’s the major reason why we are here, pleading for NERC’s approval for this,” he pleaded.
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According to him, the macroeconomic developments in the country have made it difficult for APLE to continue to operate under the current tariff regime.
“There are some dollar-backed projects we are working on and which will be difficult to realise if we continue operating under the current tariff regime.
He stated that as long as there’s a constant electricity supply, tariff hike is not a major issue. And the company is ready to supply when its tariff is increased to meet all contractual obligations. He added that the company has proved its status as a reliable electricity provider having invested in the generation and distribution of electricity to the customers it served.
Opiegbe further said that the infrastructure has been one of its hindrances in going completely off-grid to supply electricity to its franchise area but would be solved in coming years when it gets its electricity from the Geometric Power Aba Limited (GPAL), its sister company.
The MD also noted that the current tariff has made it incur over N26 billion debt to the NDPHC as its monthly invoice increased to N1.5 billion which it is able to pay N500 million while its invoice from GPAL is 1.2 billion which it paid N700 million.
In his response, the Vice Chairman of NERC, Musiliu Oseni, said the commission would look critically at the parameters set by the company to arrive at the cost it proposed to ensure customers are not exploited.
“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 have already concluded the process. Before we allow your cost to be passed on to the end user, we’ll have to look at it and see the problems it might cause or otherwise” Oseni explained.
