🔶 The electric utility [Ethiopia] has revised the electricity tariff. This time, it is a significant jump and Ethiopia is no more likely be the lowest tariff electricity provider in the world.

☑ Clearly, the low tariff has been a key barrier for #investment in the energy sector. And I just hope that the utilities will manage the revenue gain to improve the infrastructure across all value chains.

☑ The government and the utilities must acknowledge that consumers are at a disadvantage in a delayed tariff revision. It is not fair to offload everything at the same time while they could reasonably adjust very year.

〰 Keep in mind that there is additional VAT introduced by the government at the same time.

☑The new Electricity tariff scheme includes residential, commercial, Low voltage industrial, High Voltage industrial and street lighting categories.

〰 Service charge[ for all user groups] and demand charge for industrial users are applicable too.

☑ The tariff will be implemented since the beginning of the Ethiopian new year and the increase will be applied quarterly [phased approach] for the coming four years.

☑ Low energy consumers [ up to 200KWh] are still subsidized to avoid the economic burden, and cross subsidization is assumed by high energy users.

〰Industrial users’ tariff increase is relatively modest.

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