By Yiep Joseph
Central Equatoria Business Union (CEBU) has called on the government to review and reduce power tariffs in order to enhance investment.
Juba Electricity Distribution Company (JEDCO), a Private Public Partnership company incorporating EZRA Construction and Development Group and the South Sudan Electricity Corporation is currently the only electricity service provider in Juba.
South Sudan Electricity Corporation (SSEC) is reported to have 48% shares, while EZRA Construction & Development Group (ECGD), a foreign company, holds 52% shares.
Although the electric poles on the roads across Juba were paid for by the government and the African Development Bank while EZRA Company owned the generators at Gumbo Shirikat, tariffs continue to hit the residents.
In their follow-up meeting with the Ministry of Energy and Dam to enhance the implementation of the previous Economic Forum resolution, the Union underscored high power prices as a challenge to investment.
According to the statement received by this outlet, the CEBU Technical Advisor, Ass. Professor Jimmy Pitia, presented several items for the government to implement to improve the economy of the country.
With a call on the government to diversify the energy sector by incorporating more renewable power solutions, the body urged the government to focus on reducing the power tariffs.
“The government should revise power tariffs, which are currently the highest in the world, to enhance the investment climate and ease the crushing burden on the people,” the statement partly read.
The Union appealed to the government to develop a comprehensive legal framework for the energy sector to attract and secure investments.
In his part, Eng Faustino Tombe, Director General for Planning in the Ministry of Energy and Dams, expressed that current tariffs are affected by the fluctuation of currency.
“The current tariffs were passed by the National Parliament back in 2018, but because of the fluctuations of our currency, it has greatly affected the tariffs,” he said.
He added that the ongoing projects, including the Nesitu power plant, which is about 20 megawatts, would be of extra help to the country.
Lam Tungwar, Undersecretary in the Ministry of Energy and Dams, revealed that besides other plans by the government, the initiative to export power from Uganda can also help.
“The ministry is working hard on ways to reduce the high tariffs by importing power from Uganda, which will drastically reduce the burden of high tariffs, and also planning for renewable energy,” he said.
Last year, the National Chamber of Commerce accused the Juba Electricity Distribution Company (JEDCO) of charging excessive power tariffs that have frustrated the growth of local manufacturers.
Speaking during the third Made in South Sudan Trade Fair in Juba, Ladu Lukak, the chairperson of the Chamber, said the cost of electricity in South Sudan is the highest in the world.
“Some of us in the private sector can manufacture products like cooking oil, flour, soap, biscuits, handkerchiefs, etc. here, but we have a problem with electricity. This electricity has now become like the dollar because the most expensive electricity tariffs are in South Sudan, and yet no one is questioning the person supplying the electricity,” he said.
He expressed that when one buys electricity worth SSP 10,000, the company makes deductions of 2,500 in charges.
Several residents continue to express different views, with others believing to be cheated by the power distributors.
Some small business owners are reportedly spending over SSP 20,000 daily for electricity, while those running businesses that require more power claim to spend upwards of SSP 70,000 each day.
However, some residents claimed to be paying over SSP 10,000 daily, of which it cannot last in case one has electronics like television.
JEDCO tariffs obtained from its official page
- Domestic customers using electricity of 100 KWH at 0.316 USD/KWH
- Domestic customers using electricity of more than 100 KWh at 0.336 USD/KWh
- Government customers using electricity at 0.336 USD/KWh
- Commercial customers using electricity at 0.440 USD/KWh
- Industrial customers using electricity at 0.450 USD/KWh
reported electricity tariffs in other countries
Uganda
The price of electricity for households in Uganda is 0.170 USD per Kwh, and for businesses it is o.124 USD per kWh as of 2023.
Kenya
As of September 2023, one kilowatt hour costs around 0.31 U.S. dollars in the country, with households paying 0.22 U.S. dollars per kilowatt hour.