Aba Power Limited in Abia State has increased its electricity tariff, citing the need to cover rising operational costs while continuing to provide reliable service to its customers in Aba and surrounding areas.
The company revealed that the National Electricity Regulatory Commission (NERC) granted regulatory approval for the tariff adjustment on December 30, 2024, with the new rates taking effect on January 1, 2025. The decision, the company noted, was necessary due to inflation, fluctuating foreign exchange rates, and higher costs of power distribution.
In addition to these economic pressures, Aba Power is also dealing with vandalism and sabotage of its facilities, which has further strained its resources. The company urged both the government and power consumers to help curb these issues.
Managing Director of Aba Power Limited (APL), Barr. Ugochukwu Opiegbe, pointed out that while other electricity distribution companies (Discos) raised their tariffs as early as April 2024, Aba Power held off for over eight months. During this period, it maintained the lowest tariff in its service area despite facing similar financial difficulties.
Opiegbe also noted that Aba Power operates as a fully private company and does not receive government subsidies or financial support. This means the company relies entirely on revenue from customers to fund its operations. He explained that the recent tariff hike reflects the actual costs of power generation, distribution, and maintenance.
“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,” Opiegbe stated.
The company also conducted a three-day customer engagement session before implementing the tariff change to inform and discuss the decision with consumers.
Regarding allegations of estimated billing, Opiegbe clarified that the company follows NERC regulations, using a capping method to guide billing processes.
Aba Power reassured customers that it understands the financial difficulties many are facing and remains committed to providing stable electricity services while managing the economic challenges affecting itsoperations.
