The Ethiopian Electric Utility has announced a rolling increase in power tariffs over the next four years as part of a comprehensive power sector reform. Quarterly increments averaging 10% will be progressively applied, with the first round slated for next month. This will result in EEU customers facing an average power utility cost increase of 400% by 2028.
Shiferaw Teilia (Eng), CEO of EEU, unveiled the new tariffs, which will be applied discriminately based on daily consumption rates, at Nib Bank’s headquarters on Wednesday morning.
“We have to recover our costs,” he noted. “Our infrastructure is sourced from the global market.”
The CEO indicated the need to maintain competitive prices for financial health, emphasizing how the adjusted rates still remain significantly less than neighboring Kenya. He expects the new strategy to boost EEU’s financial stability.
“Our goal is to stimulate investment and foster competition,” Shiferaw noted.
Households that use less than 50 kilowatt hours (kWH) at 0.27 birr will see their tariffs climb to 1.56 birr as the four-year program is completed by 2027/28. Per capita electricity consumption is 140 kWh per year in Ethiopia, which is only 5 percent of the global average of 33,131 kWh.
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