Talk Energy Ahead (TEA) is a monthly informal discussion platform in Ethiopia that aims to provide a forum for stakeholders, professionals, and partners in the clean energy sector. Its objective is to retrieve, share, and save experiences and knowledge related to energy issues. TEA also promotes the work of different stakeholders in the energy sector, forges collaborative partnerships through networking, reveals emerging opportunities, and cultivates person-to-person relationships among individual attendants.

The Talk Energy Ahead session on “Energy Tariffs and Subsidies for Consumers” was organized by the Ethiopian Women in Energy Association in collaboration with the Clean Cooking Alliance. The event took place on Friday, July 28, 2023, at Getfam Hotel. The chosen topic aimed to initiate conversations and create awareness of energy tariffs and subsidies for consumers in Ethiopia.

The Ethiopian Women in Energy Association has been actively working to advocate for gender equality and create access to clean and affordable energy for rural areas. This particular TEA session served as a platform to advocate for and raise awareness about the selected topic.

The event primarily focused on two aspects: on-grid tariffs and off-grid tariffs. These topics were presented by Yemisrach Mekonen and Dr. Atsede Gualu, respectively.

Yemisrach Mekonen provided an in-depth explanation of on-grid tariffs, starting with an overview of the Ethiopian energy sector’s legal framework and institutional structure. She highlighted the methodology principles for calculating energy tariffs based on specific parameters. The presentation also included on Ethiopian tariffs, from 2006 to 2018. Yemisrach Mekonen emphasized the categorization of consumers into residential, commercial, and industrial classes and shed light on the eye-opening concept of tariff-category-based consumption.

Dr. Atsede Gualu focused on off-grid tariffs and their unique principles. She delved into the three tariff classes based on the installation capacity of off-grid energy systems. Dr. Atsede Gualu provided detailed explanations of the tariff methodology for each class and outlined the entities involved in the tariff-setting process.

During the TEA session, the panelists dedicated time to questions and receive suggestions from the audience. Some of the questions raised included the practice of cross-subsidy for consumers using less than 200 kW, the determination of tariffs for exported electricity when Ethiopia is currently an electricity exporter to neighboring countries, and the challenges faced by mini-grid developers in balancing the importing price of components with tariff setting.

Additionally, the panelists turned the tables and asked the audience a question regarding energy tariffs in the city. They asked whether the audience would be willing to pay slightly higher energy tariffs if it meant that rural communities could have access to affordable energy. This question sparked a discussion among the participants on the topic of reducing subsidies for cities to support rural energy affordability.

Overall, the TEA event facilitated an open and inclusive atmosphere for discussing challenging energy sector topics in Ethiopia. Attendees had the opportunity to network with the panelists and interact with other industry professionals, fostering collaboration and understanding within the energy sector.

The organizers expressed their gratitude to speakers for sharing their knowledge and experiences, as well as to the audience for their active participation and contribution in making the event possible.

Special thanks were extended to the Ministry of Water and Energy, GIZ, the Ethiopian Clean Cooking Alliance, Addis Ababa University, Horn of Africa Regional Environment Centre and Network, and SNV for their valuable collaboration and support in bringing the event to life.

Looking ahead, the organizers expressed their hope to increase awareness in the Ethiopian energy sector and create a safe and constructive environment for discussing energy tariffs and subsidies for consumers in order to drive positive changes in the energy landscape in Ethiopia.