Ethiopia considers electric tariff adjustment

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Ethiopian Petroleum and Energy Authority said that the newly proposed electric tariff adjustment by Ethiopian Electric Utility (EEU) will not be implemented prior to getting a green light from the Authority.

Reporter newspaper reported on Sunday that the proposed price adjustment is planned by EEU and it will conduct a survey on it. Bizuwerq Demissie, Deputy CEO of EEU was quoted by Reporter Amharic as saying that, “The price adjustment proposal is partly attributed to the ever-soaring inflation”.

Bekelech Guma, Public Relations and Communication Director at Authority told Origins Business that, “The price adjustment will be presented to us and any it will not be implemented without our final approval.”

She added: “We’ll check whether the adjustment is pertinent to the law and procedure or not including it puts the society’s economic status into consideration.”

The adjustment survey will be directed to the Council of Ministers after these appraisals conducted by the Authority, according to Bekelech.

EEU adjusted the rates after 12 years of hiatus in December 2018. This followed a perennial shortfall in revenues as a result of electric subsidies.

The tariff adjustments came after a 2013 World Bank study recommended increasing domestic tariffs to as much as 400% if the nation was to meet its target of reaching a power capacity of 37,000MW by 2037.

The largest consumers of electricity, which the utility classifies as those that use more than 500KWh a month, will see their tariffs grow by more than fourfold to 2.48 Br per KW in four years.

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