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Ethiopian Electric Power (EEP) is revising its tariff structure due to financial losses. The company has a debt of 367 billion Birr and loses about 29 billion Birr annually on operations and maintenance. On June 6, 2016, EEP and Ethiopian Electric Service discussed the new draft tariff with stakeholders and media. Key challenges include low per capita electricity consumption, limited energy access and generation capacity, unreliable supply, and inefficient operations. By 2023, EEP aims to expand power transmission lines to 36,345 kilometers and distribution stations to 323. Completing these projects requires over 200 billion Birr for generation and 25 billion Birr for transmission. The plan also includes diversifying energy sources to reduce reliance on hydropower. The revised tariff is expected to attract over 350,000 new customers annually, but reaching all 8,500 Kebeles could take 27 years under the current rates. Currently, only 36% of Ethiopia’s population has access to electricity.
