Aba Power defends tariff hike, says new rates reflect economic realities

The Aba Power has justified its recent tariff increase, insisting that its rates are entirely cost-reflective and necessary for sustainable operations.

The company’s Managing Director, Ugo Opiegbe, stated this at a media parley held at its corporate headquarters in Aba on Wednesday, following widespread protests by residents over the new electricity tariffs approved by the Nigerian Electricity Regulatory Commission.

Opiegbe explained that the tariff adjustment was in line with NERC’s regulatory framework, adding that Aba Power received the directive on December 30, 2024, with an effective date of January 1, 2025.

“This adjustment for various customer classes reflects the current macroeconomic realities affecting the power sector,” he said.

He noted that before implementing the new tariff, Aba Power held a three-day customer engagement session across its service area to discuss the changes.

“This engagement was widely publicised through radio, social media, and newspaper publications, underscoring our commitment to open and transparent communication with our customers,” he added.

The MD emphasized that Aba Power operates independently as a 100% privately owned company, unlike other electricity distribution companies that receive government subsidies and interventions.

He stated, “Our entire operation—power procurement, operational expenses, and financial obligations—is funded solely from the revenue we generate. Like our customers, we are also affected by current economic reforms, and we empathize with the financial challenges they are facing.”

To address billing concerns, Opiegbe said the company was expanding its metering initiative through the Meter Asset Provider scheme and a Mass Metering Programme.

“Customers who do not want to wait for mass metering can apply for prepaid meters under the MAP scheme by visiting our website or any of our offices,” he said.

He revealed that the company expects over 40,000 meters in the first quarter of 2025 to accelerate the process.

Opiegbe said Aba Power had invested in upgrading most of its feeders, adding that the company currently has only one Band E feeder, which demonstrates its commitment to improved service delivery.

He, however, lamented that issues such as vandalism, sabotage, and power theft remain major challenges for the company.

The tariff increase has sparked outrage among residents, with a broad coalition of stakeholders—including business owners, the Joint Action Group, the Aba Landlord Protection and Development Association, the Aba Electricity Consumer Forum, civil society groups, and industrialists—rejecting the hike and demanding a review.

They argued that the increase would exacerbate economic hardships for residents and businesses already struggling with rising costs.

Addressing customers’ concerns, the company’s Consultant Branding and Communication, Nkeiru Joel, the Head of Technical, Simeon Akpata, and the Chief Operating Officer, Blessing Ogbe, advised consumers to adopt energy-saving measures.

They urged customers to pay bills promptly, avoid energy theft, budget for power costs, and assist in protecting power assets.

“Aba residents must learn to manage their energy consumption efficiently,” they said.

Despite the backlash, Aba Power insists that the tariff hike was long overdue, noting that while other DisCos had implemented upward reviews since April 2024, it maintained lower rates for over eight months.

“We kept our tariffs unchanged for as long as possible to shield our customers from economic pressures,” Opiegbe stated.