(Business in Cameroon) - Eneo, Cameroon’s power utility, expects the payment of CFA20.3 billion from the government, for 2017, corresponding to “tariff-spurred shortfalls”.

The minister of energy and water, Basile Atangana Kouna, revealed the figure during a workshop of lenders who will finance the construction of the Nachtigal Dam which will gave a production capacity of 420 MW.

“Every year, Eneo reviews the investments it made with Cameroon’s electricity regulatory agency (Arsel). The terms of the contract between the company and Cameroon’s State stipulates that these investments must reflect on the pricing”, a source close to the case said. The source also explained that its adjustments aim to maintain Cameroon’s electricity sector’s financial stability.

The source continued: “The last pricing plan dates back from 2012. This amount (CFA20.3 billion) represent the losses recorded by the utility since then”. These added with those recorded in 2008-2012 when Cameroon’s government froze electricity tariffs, promising to pay off the utility’s losses.

Over the 2018 year, the pricing-spurred losses is expected to stand at CFA1.328 billion.

Brice R. Mbodiam