(Business in Cameroon) – Starting November 1, 2024, Cameroon’s electricity distributor Eneo will standardize electricity rates for all consumers under both prepaid and postpaid plans. This change follows a directive from the Electricity Sector Regulatory Agency (Arsel), aiming to ensure that all consumers, whether residential or commercial, are billed on the same rate structure.
In a statement, Eneo explained that this decision comes after discussions with consumer groups and Arsel, including meetings in March 2023 in Mbankomo and October 23, 2024, in Yaoundé. The main goal is to create a fair, clear, and easy-to-understand billing system.
Eneo highlighted three core principles driving the change. Equity: Ensuring that all consumers, whether prepaid or postpaid, are billed based on the same rate structure; Transparency: Providing a clear and easy-to-understand billing system for all customers; Simplicity: Making the rate structure straightforward so customers can understand their bills easily.
The new structure will divide rates into consumption bands based on historical usage and recharge habits. For residential customers, the new rate tiers are as follows: 0-110 kWh: 50 CFA per kWh (excluding VAT); 111-220 kWh: 79 CFA per kWh (excluding VAT); 221-400 kWh: 94 CFA per kWh (including VAT); Above 400 kWh: 99 CFA per kWh (including VAT).
Commercial customers will have a similar tiered structure. Moreover, a monthly review mechanism will allow Eneo to adjust rate categories based on customer consumption history.
This rate harmonization follows a 2022 Arsel review, which identified significant differences in rates between prepaid and postpaid customers, particularly regarding billing bands and average per-kWh costs. Arsel directed Eneo to align prepaid rates with the 2012-regulated postpaid rates, aiming to ensure fairness, compliance, and simplicity. Following discussions with consumer associations on October 23, Arsel announced it would closely monitor the transition to ensure a smooth rollout on November 1. Eneo also emphasized that the new system does not alter the fundamental principle of electricity billing in Cameroon, which remains based on consumption levels.
