July 19, 2024

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Ethiopia electricity tariff

Ethiopia: Government Considers Increase in Electricity Tariff

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Ethiopia: “Electricity tariff reform will be submitted to the Council of Ministers for decision in the coming weeks,” says Oil and Energy Authority.

The Fuel and Energy Authority today announced that it will review the electricity tariff revisions prepared by the Ethiopian Electric Power and the Ethiopian Electric Service and submit it to the Council of Ministers for a decision in the coming weeks. A meeting focused on improving the electricity sales tariff of Ethiopian Electric Power and Ethiopian Electric Service was held today.

The electricity tariff, which had to be reviewed in the last two years, remained without revision, causing losses to the institutions and putting pressure on the service delivery, it was said at the meeting.

The two institutions have conducted a study on the electricity tariff reform separately and jointly, and it has been suggested that the reform should be submitted to the Oil and Energy Authority after it was evaluated by another consulting firm.

The Oil and Energy Authority is responsible for reviewing the tariff revision proposals submitted by the licensees for power generation and distribution and submitting the proposal to the Council of Ministers for approval.

Ahmad Saeed, Deputy Director General of Energy Sector of the Petroleum and Energy Authority said, “We have guidelines according to the authority given to us by the government. Did they follow those guidelines or did they issue the tariff? For example, if the tariff increases, revenue will increase. If they increase unnecessary expenses with that in mind, we will control them.”

In addition, he stated that the tariff rate that all the institutions have studied will be evaluated according to the instructions of the authority and “it will be presented to the Council of Ministers for a decision in the coming weeks”.

How much will the tariff revision increase the current tariff? It remains to be seen.

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