See new rate as Aba Power company proposes new electricity tariff increase

• Aba Power wants the NERC to adjust the electricity tariff again and has cited macroeconomic challenges and operational costs
• the company explained that the cost of electricity generation has risen from N21/kWh to N133.2/kWh
• NERC has opened consultations on the proposal, with a public hearing set for December 2024 in Abuja

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Aba Power Limited Electric (APLE) has proposed that the Nigerian Electricity Regulatory Commission (NERC) raise the electricity tariff to N240 N122 per kilowatt-hour.

This is a 97% increase compared to the current N122/kWh paid by electricity consumers.

Aba power asks NERC to raise tariff Photo credit: Nurphoto
Source: Getty Images

The Nigerian Electricity Regulatory Commission (NERC) confirmed the proposal in a document released on Thursday, November 14, 2024.

In the document, Aba Power explained that its proposal for another tariff increase is due to fluctuations in Nigerian and U.S. inflation rates and foreign exchange values, which have significantly impacted operations.

It noted that the cost-effective tariff would sustain the company's operations, Punch reports.

Another reason mentioned is the cost of electricity generation, which has risen from N21/kWh to N133.2/kWh.

The company argues that the revised tariff is essential to ensure a fair return on its multibillion-naira investments in distribution infrastructure, including the bifurcation and rehabilitation of over 400km of 11kV lines.

DisCos announce another price hike for electricity prepaid meters

Electricity Distribution Companies (DisCos) in Nigeria have once again raised prices for various prepaid electricity meters from approximately N117,000 to as high as N149,800, depending on the distribution company and meter supplier.

Price adjustment is part of the ongoing deregulation of Meter Asset Providers (MAP), as mandated by the Nigerian Electricity Regulatory Commission (NERC), allowing DisCos to adjust prices per market forces.

National Grid collapses again

Legit.ng earlier reported that for the 10th time in 2024 and the 2nd time in days, the national grid collapsed, plunging several parts of the country into darkness.

Electricity companies announced the collapse in messages posted to their social media accounts for customers.

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Source: Legit.ng