By Groum Abate : Capitalethiopia
The Ethiopian Electric Power Corporation (EEPCo) is considering increasing the electric tariff in the next couple of months after getting a feedback from its officers, who departed to different areas of the country to collect information.
The corporation will forward the increment proposal to its controlling body, the Ethiopian Electric Agency. Then EEPCo will send the proposal to the Council of Minister’s for approval.
Six years ago, EEPCo proposed an increase but it was never applied. The corporation back then planned to increase the tariff from 10 percent on households to as much as 200 percent on big power consuming factories.
Misikir Negash said that the corporation has not finalized the proposed price increase on electricity. “We are waiting for feedback from the team that is studying the increment” Miskir added.
The study is expected to be completed in two months and will have to wait for the approval of the Council of Minister’s before implementation.
According to information from the power utility, the corporation subsidizes 35 percent of household consumption currently and charges 0.04 dollar per kilowatt for private households. The price of the corporation has been unchanged since 2002.
A comparative study of electricity tariffs used in Africa ranks Ethiopia as having the lowest rate for electricity. Officials of the company share this opinion saying that the tariff currently at work is way below the international standard that goes up to 0.50 Euros.
The Addis Ababa City Administration Water and Sewerage Authority (AAWSA) announced another round of tariff increases as of today January 9, on tap water it supplies for its almost 300,000 customers.
The authority classified its customers in seven categories based on their usage of water on monthly basis and will charge these customers accordingly.
The authority announced that 218,000 of its customers that account for 70 percent of its users with a consumption rate of seven cubic meters per month will pay 1.75 birr per cubic meter without any increment.
Those who consume from seven cubic meters up to 20 cubic meters and up to 40 cubic meters of water per month will pay 3.80 birr and 4.75 birr per cubic meter respectively according to the revised tariff.
Moreover, customers with a monthly consumption of up to 100 cubic meters and up to 300 cubic meters will pay 5.95 birr and 7.45 birr per cubic meter respectively.
Customers whose consumption is up to 500 cubic meters and above 500 cubic meters of water will pay 9.30 birr and 11.60 birr for a cubic meter. All the above customers that use over 20 cubic meters per month used to pay 3.25 birr per cubic meter so this is over a 300 percent increase.
This increment comes four years after the authority last revised its tariff in May 2007. The last increment, four years ago, was said to be the final stage in a five-year price adjustment plan to enable AAWSA to cover its production, distribution and maintenance costs and finance development projects in the future.
According to a World Bank Group report published in 2009, average water production in Africa costs about 0.20 dollars per cubic meter, while the average water tariff is 0.10 dollars per cubic meter.