September 14, 2024

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Ethiopian government raising electricity prices

Ethiopian Government Plans to Raise Electricity Tariffs

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The Ethiopian government plans to raise electricity tariffs by at least 10% every three months. This decision is part of a broader four-year tariff adjustment plan that officials have recently approved.

Additionally, this tariff hike connects to a project funded by a loan agreement between the Ethiopian government and the World Bank. Reportedly, the Ethiopian government has officially sanctioned a four-year reform of electricity tariffs.

After the recent economic reforms, under this new plan, consumers will see their electricity charges increase by at least 10% every three months during the first year.

Moreover, the World Bank’s report raises concerns about a $2.8 billion loan that the Commercial Bank of Ethiopia provided to the Ethiopian Electricity Service, labeling it as problematic. The Ethiopian Electric Power, which oversees major projects like the Grand Ethiopian Renaissance Dam, contributes to the financial difficulties faced by the Commercial Bank of Ethiopia.

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