JUBA – Ezra Construction and Development Group, the majority shareholder in Juba Electricity Distribution Company (JEDCO), has directed the power distributor to suspend the implementation of a presidential directive to reduce electricity tariffs, citing lack of clarity.
President Kiir, on September 27, ordered the sweeping reductions in electricity tariffs charged by JEDCO, in what many saw as the beginning of a transformative action to make electricity more affordable and accessible.
But in a letter to JEDCO Managing Director Wondimu Tenkir, Ezra instructed the company to continue operating under the existing contractual framework until consultations with the Ministry of Energy and Dams and the South Sudan Electricity Corporation are concluded.
“Dear Mr. Wondimu, …as the majority shareholder of (JEDCO), you are hereby instructed to hold the implementation of the Directive issued by the Ministry of Energy and Dams referencing the said Republican Order,” the letter reads in parts.
The company said it was seeking discussions to clarify the basis and modalities of the order while safeguarding its investment. This will now delay the government’s plan to ease electricity costs for Juba residents.
President Kiir’s directive, aired on the state-owned South Sudan Broadcasting Corporation (SSBC) last week, seeks to ease the financial burden on households and businesses, promote affordability, and expand access to electricity in Juba.
This came after the president received a detailed report from the Power Purchase Review Agreement Committee, chaired by Engineer Madhieu Acuil Mawien, Undersecretary at the Ministry of Energy and Dams.
According to the directive, domestic tariffs would be significantly reduced with consumption below 100 kilowatt hours (kWh) to be reduced to $0.273 per kWh, down from $0.303.
Usage above 100 kWh is reduced from $0.316 to $0.285 per kWh. Additionally, the $3.01 monthly service charge on single-phase connections has been cancelled.
JEDCO is a Private Public Partnership (PPP) company incorporating EZRA Construction & Development Group (ECGD) holding 52% of the shares and South Sudan Electricity Corporation (SSEC) which holds 48% of the shares.
It was established to distribute electricity to Juba, generated from the power plant built and run by Ezra Construction & Development Group (ECDG). JEDCO is the only electricity service provider in Juba.