· The Reporter
EEU Defends Tariff increments, Says Power Subsidy still High Despite Public Complaints
Summary of the The Reporter report
The Ethiopian Electric Utility says household power is still sold at a loss, at about USD 0.005 per kWh, and defends its quarterly tariff increases. The increases started in September 2024 and continue until 2028 under the programme agreed with the IMF. Low-use households keep low rates. The utility plans to move all customers to prepaid meters.
Key points
- The Ethiopian Electric Utility says households pay about USD 0.005 per kWh and that it sells power at a loss.
- Quarterly tariff increases began in September 2024 and continue until 2028.
- Poor and vulnerable households keep low tariffs for very low consumption and get a VAT exemption.
- The utility plans to move fully to prepaid meters to reduce billing disputes.
Real.et analysis
The Reporter reports that the Ethiopian Electric Utility (EEU) defends its regular tariff increases. CEO Getu Geremew says households pay about USD 0.005 per kWh, which the utility calls the lowest rate in Africa. He says the service is sold at a loss. Tariffs have gone up every quarter since September 2024 under a four-year plan, and the increases continue until 2028. The plan is part of the programme agreed with the IMF. Households that use very little power keep low rates and get a VAT exemption. In six months, the utility connected nearly 267,000 new customers and earned 52.26 billion birr, 3.6% below its target. A new meter costs about 13,000 birr.
What this means for residents
Your electricity bill is set to rise each quarter until 2028. The size of each step depends on how much you use, because the tariff has bands. The lowest bands stay protected. A household that moves into a higher band pays more per kWh.
Steps you can take:
- Read your meter each month and note which band you are in.
- Check the bill against the meter reading. The CEO says old postpaid and mechanical meters cause many billing complaints.
- Ask about a prepaid meter. The utility plans to move all customers to prepaid meters and has started to install smart meters.
What this means for tenants and buyers
In shared compounds, several households often use one meter. The total can then fall into a high band, and each household pays more than it would alone. Before you rent, ask whether the unit has its own meter and how the bill is divided. Our guide to renting an apartment in Addis Ababa lists other questions for the landlord.
Higher tariffs and power cuts also make backup power a cost to plan. See our guides to solar panel prices and generator prices.
Background
The utility says only 5.5 million of an estimated 25 million households in the country have electricity. Up to 80% of its transformers now come from local factories.