NERC Grills Aba Power Electric as Company Seeks Upward Tariff Review

Emmanuel Addeh in Abuja

The Nigerian Electricity Regulatory Commission (NERC) yesterday urged officials of Aba Power Electric, one of the Distribution Companies (Discos) operating in the country, to justify its call for an upward review of its electricity tariff.

Speaking at a public hearing in Abuja as provided for by the extant rules, attended by stakeholders, including ‘intervenors’, the panel headed by NERC’s Vice Chairman, Dr Musiliu Oseni, grilled the company on how it arrived at the data for arriving at the new electricity prices it was proposing.

A presentation by the Managing Director of Aba Power, Ugo Opiegbe, had earlier outlined the proposed new tariffs, ranging from N223.12 in 2024; N263.08 in 2025; N263.48 in 2026; N294.34 in 2027 and N304 per kilowatt hour in 2028 for Band ‘A’ non-maximum demand customers from the current N99.90 KWh.

Among others, the company also listed graduated electricity prices for other bands during the period from 2024 to 2028, with the highest for any of the bands being a rise from N109.79 per kWh currently to N335/kwh by 2028.

But NERC’s Vice Chairman, Oseni, said the commission would look  critically into the parameters set by the company to arrive at the cost it  proposed to ensure that customers are not exploited.

He said: “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’ll have to look at it and see the problems it might cause or otherwise.”

He recalled that Aba Power filed the application for rates review which was received by the commission on August 20, 2024, noting that in line with the extant rules, the commission directed the company to publish it in the papers as the existing regulations demand.

He added that ‘intervenors’, were invited  to allow them make useful comments and interrogate the application by the company, stressing that at the end of the day, the ruling will be based on available information which will be communicated to the applicant.

Earlier, while making a case for the upward price review, Aba Power Managing Director, Opiegbe, who attended the event along with his team, spoke on the need to incorporate changes in macroeconomic parameters and indices which affect the quality of service, operations and sustainability of the company’s business.

He added that the company had invested massively in infrastructure without adequate returns, and has integrated its multi-billion naira distribution infrastructure for improved service.

In addition, the chief executive of Aba Power noted that the company has successfully bifurcated and rehabilitated over 400km of 11kv lines.

Still in defence of its position, Aba Power argued that in terms of generation cost, the Niger Delta Power Holding Company of Nigeria (NDPHC) has increased invoices for its wholesale energy cost from the NERC approved contract price of N21kwh to N130.26/kw.

 It added that the cost of generation from GPAL Power Plant, one of the plants it gets supply from, is currently N133.2/KWh.

Opiegbe maintained that the company has made investment without commensurate return, including the construction of 17.5km 33kv to Nvosi and Isiala-Ngwa as well as the construction of 41 kilometres of 33kv lines.

In addition, Aba Power argued that it has metered over 500 transformers, constructed 59.74km new 33kva overhead lines and completed 600 OHL 33kv tubular towers, among others.

It listed other parameters that justified the request for an increase in tariff as: inflation, exchange rate, average energy offtake, annual operating costs, among others.