Hargeisa (SLpost) – The Somaliland government has rejected a planned increase in electricity prices announced by the country’s electricity companies, with the Energy Regulatory Commission saying no company has the legal authority to raise tariffs outside the officially approved pricing structure.
The dispute follows a statement by the association representing electricity companies, which announced plans to increase electricity prices in September, citing the impact of the Middle East conflict on global fuel prices.
The proposed increase, however, directly contradicts a decision issued earlier this year by Somaliland President Abdirahman Mohamed Abdullahi (Cirro) to reduce electricity prices across the country in an effort to ease the financial burden on households and businesses.
In a press statement issued on September 8, the Somaliland Energy Regulatory Commission said that electricity companies must adhere to the officially approved tariff and cannot unilaterally impose new prices on consumers.
The Commission said there was no legally authorized institution or entity that could independently approve an increase in electricity tariffs outside the country’s established regulatory framework.
It further stated that the planned price increases announced by some electricity providers were not in accordance with Somaliland’s energy regulations, directing all companies to comply fully with the tariff approved under the government’s existing policy.
The Commission also disclosed that it had summoned SEA, one of the electricity companies, on September 7 and instructed it to halt the implementation of any electricity price increase that had not received legal authorization.
The developments have created a clear confrontation between Somaliland’s electricity companies and the government over who has the authority to determine electricity prices at a time when consumers remain highly sensitive to the cost of essential services.
The Energy Regulatory Commission warned that legal action could be taken against any company that violates the approved electricity tariff or disregards the country’s laws and regulations governing the energy sector.
Reporting by Somalilandpost News
