The Ethiopian Electric Utility (EEU) has officially launched a flexible payment scheme allowing new domestic customers to settle service connection fees over a period of up to two years. This strategic move aims to alleviate the financial burden on low-income households who have previously been unable to afford the upfront costs of electricity meters and installation.
Under this new directive, the “grace period” or installment plan is specifically designed to expand energy access across the country. By removing the requirement for a lump-sum initial payment—which has historically been a barrier for many—the EEU expects to significantly increase the number of legal grid connections in both urban and rural areas.
Key Terms and Eligibility
The program is exclusively available to Single-Phase meter applicants. According to EEU Executive Mr. Isayas Dendir, the following conditions apply to those wishing to enroll in the scheme:
- Initial Deposit: Customers must pay a 10% down payment of the total connection cost upfront.
- Application: A formal request form must be submitted at local service centers.
- Integration: Monthly installments will be automatically added to the customer’s regular energy consumption bill.
Interest Rates and Financial Structure
To encourage early settlement, the EEU has structured a tiered interest system. Customers who manage to clear their balance within the first six months will benefit from a 0% interest rate. However, for those opting for a longer duration, the utility will apply a sliding scale of interest ranging from 3% to 9%, depending on the length of the repayment window.
Technological Integration
The utility confirmed that the entire billing process is fully automated. By leveraging its digital billing infrastructure, the EEU ensures that the installment amounts are accurately calculated and merged with monthly utility statements. This transparency is intended to simplify the payment process for consumers while ensuring the utility maintains a steady recovery of its infrastructure investment costs.