Ethiopian Electric Power (EEP) has announced that it collected 119 billion Birr in revenue during the concluded 2018 Ethiopian fiscal year, representing a 57.8% increase compared to the previous fiscal year.
According to Mr. Demere Assefa, Deputy Chief Executive Officer for Corporate Finance and Human Resource Management, the revenue was generated from electricity sales, fiber-optic leasing, carried-over electricity sales from the previous fiscal year, accounts receivable, and other diversified income sources.
Mr. Demere stated that EEP had planned to generate 129.8 billion Birr in revenue during the fiscal year and achieved 92% of its target by collecting 119 billion Birr.
He attributed the strong financial performance to improvements in the revenue collection system, timely follow-up mechanisms, and enhanced coordination between the revenue collection and marketing teams, as well as close collaboration with customers.
He noted that the institution has undergone a significant financial transformation. Whereas EEP previously struggled to cover its regular operating expenses from internally generated revenue, the modernization and strengthening of its revenue collection system have enabled the organization to improve its financial performance substantially.
Mr. Demere further explained that the institution recovered from a 168% loss position and achieved a gross profit of 39.5 billion Birr during the fiscal year.
He expressed his appreciation to the institution’s Board of Directors, the Government of Ethiopia, EEP’s leadership, and all employees for their contributions to this achievement.
Looking ahead, Mr. Demere stated that EEP will continue to strengthen revenue collection by expanding income-generating opportunities, reducing operational costs, and improving cross-functional collaboration across the institution.
Providing strategic direction during the performance review, Engineer Ashebir Balcha, Chief Executive Officer of Ethiopian Electric Power, emphasized the importance of strengthening transparent and accountable systems in asset management, revenue administration, and human resource development in accordance with established laws and regulations.
The CEO stressed the need to identify and resolve institutional challenges promptly while reinforcing accountability to ensure the effective protection and management of the institution’s assets.
He also highlighted the importance of continuous capacity-building initiatives for EEP’s workforce of more than 7,700 employees to strengthen institutional culture and enhance organizational performance.
Engineer Ashebir noted that, considering EEP’s substantial asset base and operational capacity, the revenue and gross profit achieved during the fiscal year should serve as a foundation for further improvement rather than a final destination. He called for sustained efforts to reduce costs, eliminate waste, diversify revenue streams, and achieve long-term financial sustainability.
Finally, he directed all leaders to work collaboratively to improve institutional performance by strengthening procedures related to revenue collection, asset management, human resource development, and procurement.