New Electricity Tariff Implemented in Ethiopia

New electricity tariff has been implemented in Ethiopia. This tariff adjustment is divided into residential, commercial, low industry, high industry and street light users.

There are seven slabs regarding residential use of electricity. Subsidy based on usage has been announced. Residential customers who use 0 to 200 kW are beneficiaries of the subsidy. Around 75 percent of the electricity meters in Ethiopia are residential and half of the total customers in Ethiopia use 50 kW/hour or less per month.

According to the usage statistics, the share of of people who use up to 100 kW hours per month is 65%. Those who use up to 200 kW hours comprise 80 percent.

 If customers who used up to 50 KWH per month, without subsidy, he had to pay 6.01 birr per kilowatt hour. With subsidy given, they will pay 0.35 birr for one kilowatt hour in September.

 The customers who use from 51 to 100 kW hours, they will pay 0.95 ( previous 0.77) birr tariff for 1 KWH. Customers who use from 101 to 200 kW hours, their previous tariff was 1.63 birr, now they will pay 1.89 birr.

If a customer who uses 50 kW per month was not subsidized, the average electricity consumption price would have been 311 birr. However, because of subsidy, he will pay 59.74 birr.

 The 24 birr tariff that a customer who uses 50 kW/hour electricity used to pay in August will be 28 birr. The additional is 4 birr.

 In the same way, a customer who uses 200 kW/hour per month used to pay around 368 birr, will pay 420 birr. The difference is only 52.95 birr.

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