The proposed tariff revision will have a significant impact on the development of the energy sector and the improvement of services.

The proposed tariff revision will have a significant impact on the development of the energy sector and the improvement of services.

Officials from Ethiopian Electric Power (EEP) and Ethiopian Electric Utility (EEU) have underscored that the proposed draft tariff, jointly developed by both companies, will play a crucial role in advancing the energy sector.

Media experts and stakeholders were consulted at the conference hall of Adwa Museum on the joint recommendation they prepared to enhance the electricity sales tariff.

Andualem Sia, corporate planning executive, provided an overview of Ethiopia’s electricity sector during the forum, emphasizing the necessity of tariff revision. He disclosed that Ethiopia currently generates 4,820 megawatts of hydropower, 404 megawatts of wind power, and 32 megawatts of steam power.

Mr. Andualem highlighted that Ethiopia has developed more than 20,200 kilometers of high-voltage transmission lines, establishing itself as the third-largest grid operator in Africa.

The executive officer disclosed that the institution’s total assets amount to 672 billion birr, with 367 billion birr recorded as debt.

He pointed out that low domestic per capita electricity consumption, limited energy access and generation capacity, unreliable power supply, and inefficient operations are the bottlenecks in the energy sector.

Mr. Andualem emphasized several reform activities that have been implemented, such as addressing accumulated debt, resolving project implementation challenges, and establishing a comprehensive service delivery system.

The executive outlined a plan to increase power generation capacity to 17,000 megawatts by 2029, with a focus on involving private investment. This includes 6,166 megawatts from hydropower, 2,255 megawatts from wind power, 1,500 megawatts from steam power, and an additional 975 megawatts from solar power. He emphasized the critical importance of securing reliable power for the country.

Mr. Andualem disclosed plans to expand the power transmission network to 30,345 kilometers and increase the number of substations to 323 by 2031.

The executive officer emphasized that the company requires a budget exceeding 200 billion birr for power generation projects and over 25 billion birr for transmission line and distribution station projects.

Mr. Esubalew Tenaw, Director of Change and Good Governance at Ethiopian Electric Utility, mentioned that as a result of the 2018 revision of the electricity sales tariff, more than 350,000 new customers gained access to electricity annually.

However, the director noted that there is still much work to be done to significantly increase access to electricity.

According to Mr. Esubalew, it may take up to 27 years for the current power sales tariff to provide electricity to over 8,500 Kebeles (local administrative units).

He mentioned that the institution is not operating at a loss, but its annual net profit is insufficient to purchase four transformers.

According to officials from both institutions, the tariff reform has a significant impact on enhancing service delivery, expanding access to electricity, and achieving national and United Nations sustainable development goals.

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