Evolution of electricity tariffs in São Tomé and Príncipe, Cape Verde and Angola
São Tomé and Príncipe
Over the next five years, the price of electricity in São Tomé and Príncipe will increase. The tariff update, with a projected rise of about 20% by 2030, was announced by the Director-General of EMAE, the company responsible for electricity production and distribution. This measure comes as a requirement from the IMF and the World Bank, in an attempt to save the company, which is facing severe financial difficulties.
While the energy transition does not become a reality in São Tomé and Príncipe, electricity will remain more expensive for the people of São Tomé. According to Raúl Cravid, Director-General of EMAE, the alternative will involve investing in renewable energy production such as photovoltaics and, possibly, hydropower. More information here.
Cape Verde
In Cape Verde, electricity tariffs are set to decrease by an average of 9.91% to 14.81% until 30th June, as announced by the Multisectoral Regulatory Agency of the Economy (ARME). This reduction aims to "safeguard the economic and financial balance of the operators and, on the other hand, ensure the sustainability of public electricity supply services, thus protecting the legitimate interests of consumers," says the regulatory body. More information here.
According to previous statements by the Prime Minister of Cape Verde, the increase in the penetration of renewable energy contributes to the reduction of tariffs. "With more renewable energy, less importation, and less exposure to changes in international prices, obviously, we will have a greater impact on tariffs, in terms of reducing tariffs for both families and businesses," he stated.
Angola
In this regard, Angola stands out for having some of the lowest electricity tariffs in the world. In the Southern African Development Community (SADC), Angola has the lowest prices, with each kWh being sold at an average of 11.1 Kz, while the regional average is set at 89.1 Kz/kWh.
Electricity prices in Angola are directly or indirectly subsidized by the state and, although beneficial for families and businesses, they cause operational problems for state-owned companies in the sector, which continue to depend on the state to remain operational. Furthermore, they distort the market, limiting the competitiveness of renewable energy solutions. More information here.
Furthermore, in the National Assembly, within the framework of the approval of the OGE, lawmakers recommended the gradual removal of fuel subsidies, justifying the need to mitigate the consequences of smuggling these products. More information here.