July 23, 2024
ELECTRICITY: APLE seeks NERC’s approval to implement Extra Ordinary tariff in Aba
NIGER: Households, businesses grappling with poor power supply --- Investigation
– By Godswill Odiong

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ELECTRICITY: APLE seeks NERC’s approval to implement Extra Ordinary tariff in Aba

By Eyo Nsima


APL Electric Company Limited, APLE, has sought the approval of the Nigerian Electricity Regulatory Commission, NERC, to implement the Extra Ordinary tariff in Aba, Abia state.

The request is based on the desire of the company to cover the cost of operations, which has risen tremendously, due mainly to the declining value of the Naira.

In its application obtained from NERC’s website, APL stated: “APL Electric Company Limited (APLE) acquired the electric distribution assets in the Aba and Ariaria Business Units of Enugu Electricity Distribution Company (EEDC), the Aba Ring Fenced Area (ARFA) on February 16, 2022, following the payment of the full $26+million acquisition amount, pursuant to an out-of-court settlement brokered by the FGN between Interstate Electrics Limited, the parent company of EEDC on the one hand, and APLE, Geometric Power and others on the other hand. This acquisition amount is the value of the distribution assets in the ARFA as valued by the Commission pursuant to the privatization of the electric sector in Nigeria.

“Since the acquisition of the ARFA from EEDC in February 2022, APLE has maintained customer billing at the approved July-December 2022 Minor Review tariff for EEDC. Sequel to the minor tariff review of January-June 2023 for EEDC, APLE requested that the Commission allow it to migrate its customer billing in line with EEDC’s new tariff. However, Commission advised APLE to develop its own tariff and submit to the Commission for review approval.

“In consideration of the fact that NDPHC’s Alaoji Generating Company Limited (AGCL) has increased its generation tariff in the new PPA with APLE above N21/KWH approved by the Commission in the expired PPA between APLE and AGCL, and the unforeseen situation of the floating of exchange rate which has resulted in significant deflation of the Naira, APLE hereby requests the Commission to consider and allow it to make this Interim Extra Ordinary Tariff application, though, it has not operated the current tariff for up to three years as stipulated in the “Regulations for Electric Tariff Review in the Nigerian Electricity Supply Industry.” The Company is currently operating at a loss using the July- December 2022 approval for EEDC. APLE has successfully developed an Interim Extra Ordinary tariff by adopting the Model approved by the Commission.”

 It stated: “It is necessary to remark that APLE has not finalized the auditing of her account which is currently being undertaken by PWC. The company is concluding work on the creation and update of the asset register. These two reasons above have necessitated the need to use cost information in the APLE’s Management Account in the development of this Interim Extra Ordinary Tariff.

“APLE plans to hold a customer consultation on the proposed tariff on 25th July 2023. The venue and time of the consultation will be communicated to Commissioner MC&R to enable the Commission to participate in the proceedings. Accordingly, APLE humbly request the Commission to accept its Interim Extra Ordinary Tariff application.”

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