Capital Ethiopia Newspaper

Power shuffle

EEPCo requests restructure


The state utility Ethiopian Electric Power Corporation (EEPCo) will submit a new restructuring document to the Council of Ministers for final approval in the next weeks. The study was conducted to make the power utility more efficient.


The corporation structure was expected to be applied in past years but has not yet materialized. Several studies have been undertaken by the corporation itself in addition to external local and foreign based consultants.

According to sources, the current structuring will follow the study undertaken by Ben and Company, an Italian Consultant firm. These sources said that the document entailing the restructuring is expected to be delivered before the end of this budget year, which will be in one week. However, they added that it might be delayed for few weeks.

Under the application of the new structure, the corporation will be restructured into three main wings. The first wing will manage construction of electric projects and generation, while the other two wings will focus on transmission and distribution with a responsibility for power transmission and sales respectively.

According to sources, about 500 EEPCo management staff will also start a five day training workshop at Civil Service College. The letter for the management staff was distributed on Friday June 29, and does not state the purpose of the training. Although sources indicated that the training will commence tomorrow, they declined to explain explicitly how it will relate with the new restructuring.

The current restructure considers the corporation’s spreading out and diversification in terms of construction projects, power generation and distribution. The new restructure will be applied after the Council of Minister’s approved the proposal from the corporation.

Based on the new scheme the corporation will separate working responsibilities, including construction and transmission which is expected to make the corporation more  efficient in terms of saving electricity, supplying and other related issues that were problems for the perfection of the power utility in its over 55 years existence.

In the past decade the corporation has been able to make a noticeable difference in the sector related with electric users and generation. In the coming three years the corporation plans to generate 10,000MW electric power boosting the it from the current estimated 2,000MW power generation capacity.

EEPCo requires a whopping 182.2 billion birr for power generation, transmission and distribution system expansion in order to achieve its objectives envisioned in the country’s five year governing economic plan, GTP that will be completed by 2015.

From a total amount of the envisioned budget, the biggest share of 122.8 billion birr will be committed to constructing dams and harnessing other power generation schemes such as geothermal, wind and solar power.

From this total, the electric generation projects consume 65 percent of the total cost. After the GTP the corporation will consume 200 billion birr every year for projects.

The state enterprise is currently managing huge power stations which are mostly comprised of hydro-power. Currently the corporation, which has become one of the most successful government enterprise in relation with development projects, is conducting ambitious plan to expand electric generation and transmission.

To meet the target, it has revised the first 25 year electric sector master plan applied 12 years ago for the coming 25 years that will be implemented by 2037. The new revised master plan is expected to be released during the second quarter for the next budget year; with aims to generate 37,000MW of electricity. In addition the corporation is working to expand its electricity export. It recently signed an agreement with South Sudan, the fourth country in the region to export electricity.