Aba Power’s recent tariff increase has ignited a firestorm of controversy in its service area, prompting widespread protests and condemnation from a diverse coalition of stakeholders. The company, however, maintains that the increase is unavoidable and entirely justified, driven by escalating operational costs and the need to maintain sustainable service delivery. This clash of perspectives underscores the complex dynamics of electricity pricing in Nigeria, pitting the financial viability of power providers against the economic realities faced by consumers. Aba Power argues that its rates are now cost-reflective, mirroring the broader macroeconomic pressures impacting the energy sector, while consumers contend that the hike is an unbearable burden on already strained households and businesses.
At the heart of Aba Power’s justification is its claim of operating under a different financial model than other distribution companies (DisCos) in Nigeria. Unlike its counterparts, which often benefit from government subsidies and interventions, Aba Power insists that it operates as a fully private entity. This distinction, according to the company, means it relies solely on revenue generated from its customers to fund its operations, including power procurement, operational expenses, and financial obligations. The company’s Managing Director, Ugo Opiegbe, emphasizes this point, stating that Aba Power, like its customers, is subject to the prevailing economic reforms and understands the financial challenges they face. However, he argues that the tariff adjustment is essential for the company to continue providing reliable electricity services.
To mitigate the impact of the tariff increase on customers, Aba Power has highlighted its commitment to expanding its metering program through the Meter Asset Provider (MAP) scheme and a Mass Metering Programme. This initiative aims to address billing concerns and ensure accurate and transparent billing practices. Customers are encouraged to apply for prepaid meters under the MAP scheme either online or at Aba Power offices. The company expects to receive over 40,000 meters in the first quarter of 2025, signaling its dedication to expediting the metering process and enhancing customer satisfaction. Furthermore, Aba Power boasts significant investments in infrastructure upgrades, reducing the number of Band E feeders, which represent a lower level of service reliability, to just one. This, according to the company, demonstrates its ongoing commitment to improving service delivery.
Despite these efforts, Aba Power faces persistent challenges in the form of vandalism, sabotage, and power theft. These illegal activities, the company argues, further strain its resources and contribute to the need for the tariff adjustment. The company has urged customers to assist in protecting power assets, recognizing the collective responsibility in maintaining a stable and reliable electricity supply. This appeal underscores the complex interplay between the power provider and its customers, where cooperation is essential for overcoming operational challenges. However, the underlying tension remains: consumers view these challenges as the responsibility of the provider to overcome, not an excuse for increased tariffs.
The public outcry against the tariff hike has been significant, with various stakeholder groups, including business owners, resident associations, consumer forums, and civil society organizations, vehemently rejecting the increase. They argue that the higher tariffs will exacerbate the economic hardships faced by residents and businesses, many of whom are already struggling with rising costs of living and doing business. This unified resistance against the tariff increase reflects the widespread economic vulnerability in the region and the perceived insensitivity of the price hike to the prevailing economic conditions. The stakeholders demand a review of the tariff and a more equitable solution that considers the financial burdens on the community.
In response to customer concerns, Aba Power officials have advised customers to adopt energy-saving measures to mitigate the impact of the increased tariffs. These recommendations include paying bills promptly, avoiding energy theft, budgeting for power costs, and managing energy consumption efficiently. While these suggestions aim to empower customers to control their electricity expenses, they also highlight the fundamental disagreement between the company and its consumers. The company emphasizes individual responsibility in managing energy costs, while consumers argue that the tariff increase itself is the primary driver of their financial burden, regardless of individual energy-saving efforts. This discord highlights the urgent need for a constructive dialogue between Aba Power and its stakeholders to find a mutually acceptable solution that ensures both the company’s financial viability and the affordability of electricity for its customers.
