The Ethiopian Electric Utility (EEU) has announced the implementation of the highly delayed electric tariff adjustment that supports its financial stability and access to finance for projects to improve its services. The tariff adjustment that was studied and put on shelves for over a decade had begun application about two years ago with different implementation phases until December 2021.
Shiferaw Telila, CEO of EEU, told Capital that
the revenue increment creates the confidence of lenders, who provide finance for projects including rehabilitation work. Previously we were not on prudent financial situations to access loan from banks. Banks demand the financial statement and if it is not sound no bank is interested to provide money. This has however now improved and has become promising because of the tariff change. For instance we are undertaking 8 billion birr worth of rehabilitation works in Addis Ababa, which is financed by loan,” he added. Since the tariff adjustment came into force some extra amount of revenue has been earned that could allow EEU to some extent fulfill required equipment and logistics.
The CEO reminded that previously the tariff was very small and could not enable the undertaking of other expansion and network rehabilitation works excluding covering operation cost due to that most of the city networks including Addis Ababa were not having the capacity of the current power demand and also the network was outdated that led for frequent power interruptions and poor operation.
In its press briefing today, Ethiopian Electric Utility, EEU, announced that it has collected ETB14.97 billion from Energy and related sales out of the planned ETB 25.38 billion. Its planned revenue collection performance reached only 59%.
Mr. Shiferaw Telila, CEO, Ethiopian Electric Utility, EEU, said ETB11.06 billion Revenue was generated from energy sales alone. The Utility collected additional revenue from Connection Charges( ETB 3.88 billion), sales of scarped materials (ETB 19.03 million), arrears (ETB200 million) and other sources( ETB 7.43 million).
The CEO told the audience that the utility managed to construct 3403.81 KMs MV lines, 2797.19 KMs of LV distribution lines, installed 769 distribution transformers, connected 168,751 new customers, electrified 308 rural towns and villages and rehabilitated all of the 17 planned towns this year budget year.
The utility has also commissioned Enterprise resource planning, ERP, system meant to modernize the organization's operational processes, standardizing the financial reporting and digitizing the payment collections systems.
