BusinessBusiness, Energy




Cameroon-Electricity: Eneo Claims More Than FCFA 234 Billion From Gov’t

The amount is divided into three main categories: central government (CFAF 131.7 billion), public companies (CFAF 55 billion) and other…

eneo

The amount is divided into three main categories: central government (CFAF 131.7 billion), public companies (CFAF 55 billion) and other public entities (CFAF 47.8 billion).

The amount claimed by the exclusive distributor of electricity in Cameroon from the State of Cameroon have thus increased by 38.5 billion CFAF since the letter sent by Actis, the majority shareholder of Eneo (51% of the shares), to the Prime Minister of Cameroon, Joseph Dion Ngute, on April 14, 2023. In the letter, signed by Actis partner, David Grylls, the British investment fund estimated the public debt owed to its Cameroonian subsidiary at FCFA 186 billion.

This figure was immediately contested by the Cameroonian government. Commissions were set up to determine the amount of public debt owed to Eneo. But several months later, this work is still not complete, according to a press release issued at the end of the power company’s board meeting in Yaounde on December 7, 2023. “The management was encouraged to continue the dialogue with the regulator to resolve the outstanding issues, that is the recognition of Eneo’s investments, tariff compensation and public lighting,” it says.

The Actis subsidiary has always been involved in fierce negotiations with the State and its subdivisions over tariff compensation and the billing of public lighting. To understand this, it is important to know that the tariff equalisation (a subsidy paid by the government to the consumer, representing the difference between the actual cost of a kWh and the price actually paid by the consumer) depends on a number of variables, such as the level of investment made by Eneo, the value of which is still the subject of lengthy negotiations with the government. In addition, as the country’s towns and cities do not have a modern public lighting network, consumption figures are estimated on the basis of the number of streetlights counted. However, the municipalities and Eneo are still struggling to agree on the number of streetlights in operation at any given time. This is often the subject of counter-assessments.

Nothing concrete has been achieved on this issue, according to our information. There is talk of structuring an operation to monetise part of the state’s debt to Eneo. This would enable the subsidiary of the British investment fund to pay part of its debts to its suppliers. Globeleq, the independent power producer which has a claim of up to FCFA 107.7 billion on Eneo, is of the opinion that “no concrete details on the amount and timing of the monetisation operation have been decided”. Since December 01, 2023, Globeleq has shut down its power plants, which have an installed capacity of 304 MW, for the second time, causing a light shortage that lasts more than six hours.

 

Follow the live information on our channel