Two weeks ago, Ethiopian Electric Power (EEP) announced a new, multi-phase tariff structure for Bitcoin miners. Scheduled to take effect in the coming month, the framework will replace the flat rate of around $0.0314 per kilowatt-hour with a more complex system that incorporates time-of-use pricing and an availability-based rate.
The increases are steep: close to 30% in December 2025, followed by 24% in July 2026 and 28% in July 2027. The move comes a few months after the state-owned power provider announced it would no longer issue new permits for bitcoin miners.
The notice landed abruptly, and while some mining companies are still hoping for negotiations, the announcement has sent shockwaves across the industry, with some weighing the possibility of shutting down or selling facilities to relocate to markets with more predictable regulatory environments.
For Bitcoin miners, electricity is the single most important factor in determining their operating costs. Power expenses gobble up around 60% of total revenue, and in some cases, that could goes up to 70%.
Following the new tariff announcement by Ethiopian Electric Power (EEP), QRB Labs, the only Ethiopian-founded Bitcoin mining company, issued a statement cautioning of severe adverse consequences for the sector.
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