THE AFRICA TIMES | SOUTH SUDAN —
The Ezra Construction and Development Group Limited (ECDG) has rejected a presidential order. President Salva Kiir directed a cut in electricity tariffs. This rejection has ignited a dispute over control of the country’s power supply.
Kiir authorized the Power Purchase Committee last week. The authorization aimed to implement reforms at the Juba Electricity Distribution Company (JEDCO). The reforms intended to ease the financial burden on consumers.
JEDCO Majority Shareholder Resists Directive
Ezra, JEDCO’s majority shareholder, responded with a directive of its own. The company instructed JEDCO’s Managing Director, Mr. Wondimu Tenkir, not to enforce the presidential order. This instruction was conveyed in a formal letter.
The letter, dated October 1st, explicitly instructed to halt the implementation. The Ministry of Energy & Dams issued directives referencing the Republican Order.
Company Seeks Clarity
Ezra stated that it has contacted the Ministry of Energy and Dams. The company seeks clarity on the basis and modalities of the order. This action precedes any further steps.
The company noted the need for mutual discussions with its partners. The partners include the Ministry of Energy & Dams and the South Sudan Electricity Corporation. Ezra seeks to safeguard its investment while addressing government concerns.
Current Operations to Continue
Ezra has directed JEDCO to continue operating under the existing contractual framework. This will remain until the issues are resolved. Kiir’s order, broadcast on state-run SSBC, slashed domestic tariffs and removed service charges for households.
The order dictated a reduction in tariffs for consumers using less than 100 kWh. Tariffs were also reduced for those using more than 100 kWh. The monthly service charge on single-phase connections was eliminated immediately.
Extensive Tariff Reductions Outlined
Connection fees have also been drastically reduced across the board. Direct single-phase connections saw a significant price drop. Low-voltage extensions also experienced substantial reductions.
Commercial tariffs were lowered, benefiting businesses. Government institutions will also pay less for electricity. Industrial users will also see a reduction in tariffs.
Service charges on three-phase connections have been reduced. High-current meter charges were also slashed significantly. Direct three-phase connection costs have dropped considerably.
Government Stake Increased
Kiir further restructured JEDCO, giving the government a controlling stake. The government now holds 60% through the South Sudan Electricity Corporation. Ezra retains a 40% stake in the company.
Ezra Construction & Development Group, continues to be at the center of this controversy. The foreign company stands firm against the presidential order.
