EEU has introduced VAT on electricity bills for customers using over 200 kWh per month. The policy has been effective since November 2024. However VAT will also apply to service charges, like new connections and other related fees. Starting December, customers have noticed VAT on their bills, along with charges for usage from September to November. This move aims to align EEU with Ethiopia’s tax regulations and ensure uniformity across utilities.

Is this a step forward for utility regulation or an extra burden for consumers?

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