11 August 2018

Ethiopia: Electric Tariff May Rise

The Ministry of Water, Irrigation & Electricity has tabled a bill that will raise the electricity tariff four fold.

The tariff increase comes after 13 years with no increases, The last amendment was made in 2005.

"This resulted in a depletion of profit earnings for the government," said Seleshi Bekele (PhD), minister of Water, Irrigation & Electricity, during a discussion held at Hilton Hotel with representatives from Addis Abeba University, Ethiopian Railway Corporation and several banks.

The Government earned seven billion Birr in revenues last fiscal year from electricity, which is significantly short of the 28 billion Br targeted by the government, according to Seleshi.

The country's electricity tariff stands at 0.018 dollars per kilowatt hour, one of the lowest rates in Africa. Electricity tariffs in Sudan, Nigeria, Kenya, Uganda and Rwanda range from 0.05 to 0.25 dollars per kilowatt hour.

The national peak electric consumption is 2,500MW, and minimum consumption is 700MW at any given time.

Ethiopia has a current capacity to generate 4,500MW of electricity, and the potential to produce 45,000MW from hydropower, 10,000MW from geothermal and 1.3 million megawatts from wind power.

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