NERC approves 120% tariff increase for Aba Power

The Nigerian Electricity Regulatory Commission (NERC) has approved a 120 per cent tariff increase for electricity customers in Aba Power.

A statement on the X account of the company stated that the new tariff was after it got an approval from NERC for an adjustment of electricity tariffs, effective January 1, 2025.

It said the new tariff that would see Band A non-MD customers tariff increased from N99.9 Kilowatt per Hour to N219.70/KwH would enable it to cushion the effects of recent macroeconomic developments in the country and increase its ability to continue to deliver high quality service to its customers in compliance with regulatory standards.

The approval followed a recent public consultation held in late 2024 during the Customers’ Forum.

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The new price approval for Band A-MD1 customers is now N236.41/KWH from N107.5/kWh and Band A-MD2 is now N241.44/KWH from N109.79/kWh.

Other increases include; Band B non-MD, N210.46/KWH; MD1 N229.56/KWH; MD2, N234.07/KWH. While Band C non-MD is N180.77/KWH, MD1, N203.89/KWH and MD2 is N205.69/KWH.

Recall that the Managing Director of Aba Power, Ugo Opiegbe, had during a hearing at NERC said its operational cost has increased astronomically since the last tariff was granted.

He said the macroeconomic developments in the country have made it difficult for the company to continue to operate under the current tariff regime, as there are some dollar-backed projects it is working on and which will be difficult to realise if it continues to operate under the current tariff regime.

Reacting to the request, the NERC Vice Chairman, Musiliu Oseni, reiterated the commission’s commitment to balancing the interests of consumers and service providers.

He said the commission would look critically at the parameters set by the company to arrive at the cost it proposed to ensure customers are exploited.