Aba Disco Gets Approval For 50% Tariff Hike

Aba Power Limited Electric, an electricity distribution company operating in Abia State, has announced a significant increase in electricity tariffs, with rates rising by over 50 per cent.

The new tariff took effect on January 1, 2025, following approval from the Nigerian Electricity Regulatory Commission.

The announcement was made via the company’s official X (formerly Twitter) handle, where details of the new tariff structure were outlined.

Recall that on December 11, 2024, the company applied to the commission for an electricity tariff hike. This means the request was considered and reviewed within 26 days.

Under the new structure, customers categorised under B and A feeders will now pay between N219.70 and N241.45 per kilowatt-hour, a steep rise from the previous N99/kWh. Band B customers are to pay between N180.77 and N203/kWh, while Band C feeders face charges ranging from N145 to N205/kWh.

Aba Power justified the increment by citing the challenging macroeconomic environment, which has significantly affected its operational costs.

In a statement accompanying the notice, the company explained, “We also wish to inform you that we have recently received an approval order from the Nigerian Electricity Regulatory Commission for an adjustment of electricity tariffs, effective January 1, 2025.

“This adjustment will enable us to cushion the effects of recent macroeconomic developments in Nigeria on our ability to continue to deliver a high quality of service to our customers in compliance with regulatory standards.”

Reacting, customers affected by the tariff hike have expressed mixed reactions to the development.

Some expressed concerns over the potential financial strain the increase may impose on households and businesses already grappling with high inflation and economic uncertainties.

In April 2024, NERC approved an electricity tariff hike for Discos.

According to NERC, between 2024/Q2 and 2024/Q3, the subsidy obligation of the federal government increased by +N84.06bn, from N380.06bn (52.51 per cent of total GenCo invoice) to N464.12bn (54.71 per cent of total Genco invoice).

Punch news/ Olusola Akintonde