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Title: Assessment of Source of Funds, Power System Efficiency, Electricity Tariff and Financial Performance: Case of Ethiopian Electric Power and Ethiopian Electric Utility
???metadata.dc.contributor.*???: Yitbarek Takele (PhD)
Alemayehu, Mengistu
Keywords: Electric tariff;Foreign loans;Source of funds;Power system loss
Issue Date: Mar-2017
Publisher: A.A.U
Abstract: Electric power has cascading, everlasting and vicious effect on the economy, social and political performance of any country, and has great role wherever people live and work be it in manufacturing, services etc. Source of funds, power system efficiency and electric tariff were considered as the basic causes for success or failure of GTP_II plan to develop and operate electric power which is expected to energize the planned economy. The objective of this paper was to assess source of finance, power system efficiency, electric tariff and financial performance and to identify the related challenges to each source of Ethiopian Electric Power and Ethiopian Electric Utility. So as to meet this objective both qualitative and quantitative approaches were used. For the qualitative study, profound data was collected from key informants and focus group discussant and analyzed using content analysis approaches. Descriptive analysis was used to analyze quantitative data collected from different documents. The findings of the research show that In GTP_I 32% of total investment covered from foreign loans, 57% expended from bond sales to CBE and 11% is spent from own sources and none of GTP_I major plans achieved fully fundamentally because of financial limitations. In GTP_II 38% of the total estimated investment in the sector expected from foreign loans, 44% is planned to be covered from bond sales to CBE and the remaining 18% is left for own source financing scheme. Each source has exposed the enterprises for different challenges such as the foreign loan exposed the enterprises for high foreign currency requirements to purchase goods and services, to repay matured principal loans and interests. Although bond sales to CBE is less costly relative to foreign loans and it is one of the biggest instrument or channel for the government to subsidize the sector, CBE couldn’t provide the required fund on time and as the amount of this loan is very huge the enterprises are not able to repay the interest from its revenue. In addition to these, more than 20% of the produced energy is sacrificed for electric system loss and the existing tariff system doesn’t represent the fact on the ground. In order to provide sufficient, reliable and sustainable energy for the whole public, the government and the enterprises are expected to optimize the power system efficiency, update the electric system tariff and find alternatives of smooth financing such as opening the sector’s door for private investors.
Description: A Research Project Submitted to the College of Business and Economics of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Executive Master of Business Administration (EMBA)
Appears in Collections:Thesis - Business Adminstration

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