A directive by President Salva Kiir Mayardit to slash electricity tariffs in South Sudan has been met with immediate resistance from the country’s primary power producer and provider, the Ezra Group of Companies Ltd.
The President’s order, issued last Friday, aimed to make electricity more affordable for citizens, directing the Juba Electricity Distribution Company (JEDCO) to implement significant tariff reductions.
President Kiir had ordered the following changes to the electricity tariff structure: For consumption up to 100 kWh: The rate per unit was to drop from $0.303 to $0.273 US dollars,while for consumption above 100 kWh the rate per unit was to be reduced from $0.316 to $0.285 US dollars.
Furthermore the President also explicitly ordered the cancellation of all monthly service charges.
However, the Ezra Group, which holds a majority stake in JEDCO, has outright rejected the immediate implementation of the directive, stating that the presidential order “lacks clarity.”
Ezra has instructed JEDCO to hold on to the new directives and to continue operating strictly under the existing contractual framework.
The power generating company stated it has formally written to the Ministry of Energy and Dams and the South Sudan Electricity Corporation (SSEC), requesting a mutual discussion to gain the necessary clarity.
Ezra emphasized that this step is necessary to safeguard its investments in the energy sector while simultaneously addressing the government’s concerns about electricity affordability.
The standoff between the presidency and the power company means the ordered reduced electricity tariffs will likely experience a delay, leaving consumers to continue paying the higher, prevailing rates until an agreement is reached.
The delay sets the stage for high-level negotiations over the future pricing and regulation of South Sudan’s energy supply.
