Ethiopia electricity prices. The residential electricity price in Ethiopia is ETB 0.349 per kWh or USD 0.003. The electricity price for businesses is ETB 1.223 kWh or USD 0.010. These retail prices were collected in March 2024 and include the cost of power, distribution and transmission, and all taxes and fees.
Medium Voltage Industry Tariff. 15kv & 33kv 4.1 Flat Rate 4.2 Demand Charge rate 0.6047 36.8850 0.8008 73.7700 0.9969 110.6550 1.1930 147.5400 5. High Voltage Industry Tariff.
Access to electricity (% of population) - Ethiopia from The World Bank: Data. Free and open access to global development data. Data. This page in: English; Español; Français;
The Ethiopian Electric Utility (EEU) has announced a significant electricity tariff reform, set to take effect on September 11, 2024, which will see an unprecedented increase of 122 percent in electricity rates. This reform, which has been delayed for two years due to various reasons, aims to address the rising costs of infrastructure and operational expenses faced by the utility.
Under the new tariff structure, the EEU will subsidize customers who consume between 0 and 200 kWh of electricity. However, despite this subsidy, many low-income households are expected to feel the impact of the substantial price hike. The EEU stated that the reform will encompass residential, commercial, and industrial users, as well as street lighting tariffs, including service charges and power utility bill charges.
The previous tariff for users consuming between 0 and 50 kWh was set at 0.27 cents, which will now increase to 0.60 cents. This change represents a quarterly distribution of costs. Among residential users, those consuming between 0 and 50 kWh will see their tariffs rise by an alarming 477.7 percent, marking the highest increase in four years. Additionally, users consuming between 101 and 200 kWh will experience a 256 percent increase, while those in the 201 to 300 kWh category will face a 367.5 percent rise in their electricity bills.
The Electricity Tariff Amendment Directive No. 008/2012 mandates that tariffs be reviewed every four years, but the current reform was only approved at the 36th regular meeting of the Council of Ministers on June 20, 2024. Shiferaw Telila, the CEO of EEU, stated, “The tariff reform will be distributed quarterly from September 11, 2024, and will remain effective for four consecutive years until 2027.”
The EEU’s decision to raise tariffs comes in response to the IMF recommendations and increasing market value of infrastructure inputs, which rose from an initial investment expenditure of 13.7 billion birr planned for 2020 to 19.6 billion birr. In the fiscal year ending 2023/24, the utility reported earnings of 42.47 billion birr from energy sales and miscellaneous revenue, while expenditures on energy purchases and budgets exceeded 53.9 billion birr.
As the new tariff reform approaches, many consumers are expressing concern about the impact on their household budgets, particularly in the context of rising living costs and economic challenges facing the country. The EEU’s reform is seen as a necessary step to ensure the sustainability of electricity supply in Ethiopia, but it raises questions about affordability for ordinary citizens.
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