Jay Boss
Aba Power Limited, the electricity distribution company serving Aba and its environs in Abia State, has defended its recent tariff increase, stating that it was a necessary step to sustain efficient service delivery amid rising operational costs.
The company revealed that it received regulatory approval from the National Electricity Regulatory Commission (NERC) on December 30, 2024, to implement the new tariff, which took effect on January 1, 2025.
📈 Rising Costs & Economic Realities
Aba Power justified the tariff hike by pointing to key economic challenges affecting its operations, including:
✅ Inflation and exchange rate fluctuations 📉
✅ Rising costs of power generation and distribution ⚡
✅ Lack of government subsidies for private DisCos 🏛️
✅ Vandalism and sabotage of power facilities 🚧
Managing Director of Aba Power Limited (APL), Barr. Ugochukwu Opiegbe, emphasized that while other Distribution Companies (DisCos) had raised tariffs since April 2024, Aba Power kept its rates unchanged for over 8 months, offering customers the lowest tariff within its service area.
“Unlike legacy DisCos, Aba Power does not receive any government subsidies or interventions. Our tariff is entirely cost-reflective, linked to the actual costs of power generation, distribution, and operations.”
💡 Financial Pressures & Dollar-Denominated Costs
Aba Power disclosed that power importation costs had surged due to a lack of reliable gas supply, forcing the company to purchase electricity from the national grid at high wholesale rates.
“The wholesale tariff for power importation from the NDPHC has reached ₦136/kWh, while our highest customer tariff was only ₦117/kWh as of December 2024. This created a deficit.”
Furthermore, the company highlighted that the exchange rate shift from ₦416 to ₦1,700 per dollar has significantly inflated its operational costs, particularly affecting the purchase of spare parts and repayment of foreign loans.
🛑 Vandalism & Sabotage Threaten Power Supply
Aba Power also raised concerns over the vandalism of its power facilities, which continues to impact service delivery. The company urged government intervention and community support to curb these criminal activities.
📜 Addressing Estimated Billing Concerns
On complaints regarding estimated billing, Opiegbe clarified that the company follows NERC’s capping method, ensuring that customers are billed fairly based on regulated guidelines.
🔍 What’s Next?
Aba Power has reassured customers that despite the tariff hike, it remains committed to delivering reliable electricity while empathizing with the financial burdens of its consumers. The company continues to seek alternative solutions to mitigate operational costs and improve service delivery.
📢 What do you think about the tariff increase? Share your thoughts below! 👇⚡
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