Aba Power Limited, Nigeria’s newest electricity distribution company, has successfully distributed over 22,000 smart prepaid meters since the launch of its Mass Metering campaign in November 2023.
“Although our stakeholders are pleased with our progress since the program’s inception,” remarked Ugo Opiegbe, Managing Director of Aba Power, during a press briefing in Aba, “we aim to significantly accelerate our efforts over the next six months and achieve even greater milestones thereafter.”
The estimated cost to install meters for approximately 200,000 registered customers in the Aba Ring-fenced Area is projected to be at least N32 billion.
Aba Power began its commercial operations in September 2022 and currently supplies electricity to nine out of the 17 local government areas (LGAs) in Abia State.
To alleviate the financial strain on the power distribution company, the Nigeria Electricity Regulatory Commission (NERC) instructed Aba Power to collaborate with meter vending companies. These companies now charge customers between N129,000 and N147,640.01 for a single-phase meter, and between N227,207.76 and N241,875 for a three-phase meter, up from the previous rates of N88,124 and N154,624 respectively.
“We regret these increases during such challenging times for Nigerians, but they are unavoidable due to the depreciating value of the naira against the dollar,” Opiegbe explained. “The positive aspect is that customers will recover these payments over a 10-year period through electricity credit.”
Opiegbe revealed that Aba Power is currently collaborating with two meter vendors but is considering expanding the number of vendors to eliminate the practice of estimated meter readings entirely. “Estimated bills are unacceptable to us because they undermine accountability and transparency,” he stated. “They erode customer confidence, which is crucial for customer satisfaction.”
Some vendors initially considered but not hired due to concerns about quality and integrity may now be engaged as they have made improvements and are “willing to meet our standards, which must be international,” according to Opiegbe.
There have been unconfirmed reports of certain agents from the vending companies charging illegal fees to individuals and businesses. Opiegbe declined to comment on these allegations.
Aba Power is currently partnering with Holley Metering Ltd and the KAYZ Consortium to install smart prepaid meters across its coverage area. The company operates 31 feeders, which complicates the simultaneous provision of smart prepaid meters to all customers.
“We are deploying prepaid meters feeder by feeder,” Opiegbe noted. “In the past six months, we have covered four feeders: Aba Township, Aba East, Ehi Road, and the World Bank. We are about to commence work on the fifth feeder. Our chairman, Professor Bart Nnaji, has directed us to always prioritize manufacturing firms as they were instrumental in bringing Geometric Power to Aba, a key industrial city. We prioritize them to help reduce their operational costs, which will make their products more affordable, benefiting the general populace.”
Engineer Dike Ejike, an electricity consultant based in Enugu, praised Aba Power for prioritizing industrial clients. “Manufacturers in Nigeria are facing tough times and must be supported to retain their workforce. Their failure would have catastrophic consequences not just for the economy but for Nigerian society as a whole,” Ejike stated.
Aba Power’s initiative to distribute prepaid meters is a crucial step towards improving transparency and efficiency in electricity billing, benefiting both individual and industrial customers. With plans for an even more aggressive rollout in the coming months, the company is committed to enhancing the reliability and accountability of power supply in its service areas. GMTNewsng
