𝐄𝐃𝐒𝐀 𝐄𝐱𝐩𝐥𝐚𝐢𝐧𝐬 𝐏𝐫𝐨𝐩𝐨𝐬𝐞𝐝 𝐓𝐚𝐫𝐢𝐟𝐟 𝐈𝐧𝐜𝐫𝐞𝐦𝐞𝐧𝐭

The Electricity Distribution and Supply Authority (EDSA) explained the new tariff increment on electricity supply on Thursday, following an application to the Sierra Leone Electricity and Water Regulatory Commission (SLEWRC) on August 1, 2023.

During a public hearing at the City Hall in Freetown, EDSA proposed an average tariff of US$0.23/kWh, moving from US$0.11/kWh in over 100 percent proposed increment.

EDSA argued that its electricity tariff was “no longer sustainable to even break even on its direct cost of sales,” which had necessitated the application to substantially increase its tariff.

Due to the cost of the world market fuel price and the exchange rate of the country’s SLL currency, EDSA had been forced to apply for a review of its tariffs, according to the Authority’s CFO, Mustapha Sannoh.

Just in July last year, the Electricity Distribution and Supply Authority’s electricity tariff was also reviewed and revised upwardly, following a December 2019 tariff increment.

However, EDSA has faced stern opposition from consumers. The Head of the Sierra Leone Consumer Protection Agency, Ibrahim Kabia said EDSA failed to live up to expectations in the supply of reliable electricity supply after it increased tariff in 2022 as promised before the next tariff increment; and therefore, sternly disagreed with the over 100 percent potential tariff increment.

In addition, the Vice President of the Sierra Leone Labour Congress, Emmanuel Pratt said it was not timely or reasonable for EDSA to apply for a tariff increment; and therefore, the SLEWRC should not approve it.

But the Director General of the Sierra Leone Electricity and Water Regulatory Commission (SLEWRC), Emmanuel Mannah insisted that EDSA should be able to stay in business and sell ‘quality and affordable electricity’ to the consumers who should be able to benefit from the services of the Authority.

Mr Mannah said if the new tariff is approved by the SLEWRC, EDSA should be expected to generate ‘enough resources to stay in the business,’ while providing ‘reliable, sustainable, and affordable electricity’ to all of its customers.

He said the new rate would be expected to be enough for EDSA to purchase power from the energy suppliers, and also reasonable enough for the consumers’ consumption.

“Before the approval, SLEWRC would consider the interest of consumers, and investors, the cost of production, and the assurance of the financial integrity of the public utility,” said Mr Mannah.

Meanwhile, the proposed increased tariff would be expected to improve EDSA’s ‘constricted financial resources,’ enhancing its ability to meet the direct cost of buying power from the EGTC and IPPs and to settle other financial obligations, reducing the subsidy that the Government provides in the energy sector, EDSA argued.