Mogadishu (AX) — Three of Somalia’s largest electricity providers have announced a 5-cent increase per kilowatt-hour (kWh), attributing the move to a sharp rise in fuel prices that has made it difficult to continue providing services at previous rates.
BECO, Mogadishu Power and Blue Sky Energy announced the decision in a joint statement issued in Mogadishu on Sunday, Oct. 25, confirming that the new rates would take effect immediately.
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“Fuel prices in Somalia have increased by more than 70 percent,” the companies said in their statement, explaining that rising operating costs had forced them to review the fees charged to customers.
Under the new pricing structure, customers of Mogadishu Power will pay about 38 cents per kilowatt-hour, up from the previous 33 cents, while BECO and Blue Sky Energy have raised their rates from 41 cents to 46 cents per kilowatt-hour.
The companies described the 5-cent increase as modest compared with the substantial rise in fuel costs, saying they had carefully considered the difficult economic conditions facing households and businesses before implementing the change.
They also expressed regret over the additional burden on customers, noting that electricity prices could be reviewed if fuel prices decline.
The companies partly attributed the rise in fuel prices to instability in the Middle East and challenges affecting maritime traffic through the Strait of Hormuz, a vital route for global fuel supplies.
Somalia relies heavily on imported fuel to generate electricity, leaving service providers directly exposed to changes in fuel market prices, maritime transportation costs and disruptions to global supply chains.
Unlike countries with national electricity grids, Somalia relies heavily on private companies, most of which use diesel-powered generators to supply electricity to homes and businesses.
The latest increase is expected to raise living costs for households and businesses in Mogadishu and other areas served by the three companies, adding to existing financial pressures.
For a household that uses 200 kilowatt-hours of electricity per month, the new pricing structure means its monthly bill will increase by an additional $10.
The federal government has yet to announce any immediate measures to shield the public from the impact of the price increase, nor has it indicated that it will review the decision taken by the companies.
