CapitalEthipia, By Groum Abate, April 18, 2011
The Ethiopian Electric Agency’s (EEA) proposal to increase electricity tariffs by 200 percent was suspended by the Prime Minister’s office and is now under revision by the agency.
The agency proposed, two weeks ago, that the tariff be raised by as much as 200 percent, to the Prime Minister’s Office. However, the proposal was suspended for a while and the PM instructed the agency’s Planning and Tariff Department that has the mandate to stipulate tariff settings and control mechanisms to revise the proposed rate.
The agency in collaboration with the Ethiopian Electric Power Corporation (EEPCo) was considering implementing the increment this month after getting feedback from its officers, who were sent to different areas of the country to gather information.
The new electricity tariff would have increased the price from 40 percent on households to as much as 200 percent on factories which consume a lot of power. Observers say that consumers should prepare for a series of steep electricity tariff hikes over the next five years.
Though the study is said to be already completed, it will have to wait for the approval of the Council of Minister’s before implementation. Meanwhile, officials of EEPCo refused to comment on the price increment.
According to information obtained from the power utility, the corporation subsidizes 35 percent of household consumption currently and charges approximately 0.75 birr per kilowatt hour to private households. This price of electricity has not changed since 2002.
A comparative study of electricity tariffs used in Africa ranksEthiopia
According to sources, EEPCo, the government’s sole power utility registered a deficit of 900 million birr during the last fiscal year while its debt rose to 19 billion birr. The debt largely comes from building huge dams that are completed or still being constructed.
Currently the corporation is undertaking the construction of Gibe III dam that generates 1870 MW of power and the newly launched Great Millennium Hydro Power Project with a staggering generating capacity of 5250 MW.
The Ethiopian Electric Agency’s (EEA) proposal to increase electricity tariffs by 200 percent was suspended by the Prime Minister’s office and is now under revision by the agency.
The agency proposed, two weeks ago, that the tariff be raised by as much as 200 percent, to the Prime Minister’s Office. However, the proposal was suspended for a while and the PM instructed the agency’s Planning and Tariff Department that has the mandate to stipulate tariff settings and control mechanisms to revise the proposed rate.
The agency in collaboration with the Ethiopian Electric Power Corporation (EEPCo) was considering implementing the increment this month after getting feedback from its officers, who were sent to different areas of the country to gather information.
The new electricity tariff would have increased the price from 40 percent on households to as much as 200 percent on factories which consume a lot of power. Observers say that consumers should prepare for a series of steep electricity tariff hikes over the next five years.
Though the study is said to be already completed, it will have to wait for the approval of the Council of Minister’s before implementation. Meanwhile, officials of EEPCo refused to comment on the price increment.
According to information obtained from the power utility, the corporation subsidizes 35 percent of household consumption currently and charges approximately 0.75 birr per kilowatt hour to private households. This price of electricity has not changed since 2002.
A comparative study of electricity tariffs used in Africa ranks
According to sources, EEPCo, the government’s sole power utility registered a deficit of 900 million birr during the last fiscal year while its debt rose to 19 billion birr. The debt largely comes from building huge dams that are completed or still being constructed.
Currently the corporation is undertaking the construction of Gibe III dam that generates 1870 MW of power and the newly launched Great Millennium Hydro Power Project with a staggering generating capacity of 5250 MW.
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