ENEO Justifies New Electricity Rates Amid Consumer Backlash

By Claude Kenfack

The Energy of Cameroon (ENEO), which manages electricity supply in Cameroon, has addressed worries raised by users about some adjustments in the prepaid meter system.

During a press conference in Douala recently, Eneo’s Senior Electricity Manager, Ebenezer Tedjouong, provided insights regarding the harmonisation of prepaid and postpaid electricity rates, which commenced since November 1.

Consumers had earlier complained that the units were very costly.

Previously, prepaid users enjoyed a subsidised rate of FCFA 50 per kWh for the first 150 kWh of usage, regardless of their overall monthly consumption.

But the recent changes, consumers are categorized into tiers based on average consumption, ensuring that those consuming more than 220 kWh monthly are billed at FCFA 79 per kWh, including tax.

“The data revealed that many customers who consumed upwards of 220 kWh monthly did not truly qualify for the subsidized social tier (0-110 kWh). This adjustment ensures fairness across all users while stabilizing bills for 92% of our 800,000 prepaid customers,” Tedjouong said.

Protests Amplify Public Outrage

Despite Eneo’s assurances, the announcement is being criticised by consumers who still are not buying the explanation.

On November 14, members of the Cameroon Consumer Foundation (FOCACO) attempted to stage a protest in Douala, calling for a rollback to the previous rates.

FOCACO President Alphonse Abena argued that the new pricing disproportionately affects low-income households, demanding that the cost be capped at FCFA 50 per kWh for basic consumption tiers.

However, Eneo maintains its previous stance, pointing to directives issued by Cameroon’s electricity regulatory agency, ARSEL.

In 2022, ARSEL identified significant billing discrepancies between prepaid and postpaid systems, prompting the mandate for Eneo to standardise rates.

This alignment, according to Eneo, was necessary to ensure consistency across all customer categories.

Breaking Down New Rates

The revised rate structure, which has brought about discontention, is tiered as follows:
0-110 kWh: FCFA50/kWh (excluding tax)
111-220 kWh: FCFA79/kWh (excluding tax)
221-400 kWh: FCFA94/kWh (including tax)
Above 400 kWh: FCFA99/kWh (including tax).

While ENEO maintains that the updated rates are fair and compliant with regulatory requirements, critics argue that they place an undue burden on struggling households. Some are calling for immediate reforms to protect the most vulnerable consumers.

Looking Ahead

ENEO and ARSEL are currently faced with mounting pressure to find a middle ground that ensures both affordability for consumers and sustainability for the electricity provider. For now, the battle over power pricing continues, with protests and public opinion shaping the future of electricity in Cameroon.