The study on tariff reform considers the community’s ability to pay.

The study on tariff reform considers the community’s ability to pay.

The chief executive officers of the two power supply institutions announced that the tariff revision study will benefit those who use less electricity.

Engineer Ashebir Balcha, CEO of Ethiopian Electric Power, has stated that Ethiopia ranks low in terms of electricity access compared to other countries.

Engineer Asheber noted that the company is using resources that necessitate a substantial amount of foreign currency to ensure accessibility to power supply.

According to the CEO, the existing tariff, in place for several years, has enhanced the financial situation and service levels of power supply institutions. Nevertheless, it has not yielded the desired results.

He added that the consistent increase in foreign currency exchange rates has adversely affected the construction of power generation, transmission, and distribution stations.

Both power supply companies have stressed the importance of tariff revision to support their initiatives aimed at expanding electricity access and improving the quality of service delivery.

Mr. Shiferaw Telila, CEO of Ethiopian Electric Utility, stated that projects totaling over 26 billion birr are currently underway nationwide to meet the country’s energy demands.

The CEO emphasized that Ethiopian Electric Utility is upgrading infrastructure, enhancing customer service, and improving internal capacity and financial stability to tackle the issue of power outages.

Mr. Shiferaw announced that the project to upgrade Addis Ababa’s electricity network has advanced to its third phase.
He recommended that the company should implement the tariff revision to further enhance its service delivery capabilities.

Mr. Shiferaw stressed that the tariff revision takes into account the community’s ability to afford electricity while aiming to enhance service delivery.

Mr. Ahmed Said, Deputy Director General of the Energy Sector at the Petroleum and Energy Authority, highlighted that the electricity tariff, which is supposed to be reviewed every four years, has not been updated. This situation has created significant challenges for power supply institutions.

Directive number 008/2022 from the Petroleum and Energy Authority mandates that any tariff revision must ensure that power supply institutions can cover their operational expenses.

Ato Ahmed emphasized that the tariff review should be timely and appropriate to ensure the financial and operational strength of power supply institutions, thereby enabling them to expand access to electricity.

Scroll to Top