The Ethiopian Electric Utility (EEU) is rolling out smart electric metres across Addis Abeba to combat power theft, enhance customer service, and modernise its infrastructure. The project, funded by the World Bank’s Ethiopia Electrification Program (ELEAP), involves installing 25,000 advanced metering infrastructure (AMI) units. It is part of a long-term plan to equip all five million EEU customers with smart electric metres.

The initiative has a total cost of 48 million dollars and 75 million Br. Currently, it is 69pc complete, with an additional 125,000 energy metres planned for installation in the third phase.

The EEU’s unified prepayment project began as a pilot programme in the Balderas area, where 100 condominium units received smart electric metres. It was later expanded to 2,000 houses before a broader rollout. Initially set for completion by December 2024, the deadline has been extended by nine months to adjust the building data system that houses customer information. The first three months of the extension will focus on metre installation, while the remaining six months will be dedicated to evaluation.



“The unified prepayment project will reduce power theft and improve customer service,” said Tesfaye Hirpa, EEU’s distribution automation programme director.

The new smart metres can detect theft and automatically cut off power in response to illegal activity. They pinpoint theft locations using property numbers, GPS, and contract accounts. Tesfaye says this will reduce customer complaints about incorrect billing.


The project includes a new EEU mobile application, enabling customers to check and pay bills online. Payment options will expand to include Telebirr, the Commercial Bank of Ethiopia (CBE), and Awash Bank, helping prevent power disconnections due to late payments.

A parallel project targeting medium- and large-scale industries, also funded by the World Bank, is nearing its delayed completion. The initiative, launched in March 2020 with a budget of 12.5 million dollars and 9.6 million Br, was initially set for completion in 2022 but was extended to August 2024. Its goal was to install 50,000 advanced metering infrastructure (AMI) units. So far, 40,111 enterprises have received smart metres, bringing the project to 96.2pc completion.



The EEU has long struggled with power wastage and theft. Currently, 22pc of the electricity it receives from Ethiopian Electric Power (EEP) is lost, with half of that loss attributed to technical issues. In the first three months of this fiscal year alone, the Utility lost 2.7 million Br to theft.

However, the EEU managed to recover 35 million Br through sudden inspections over the same period. Tesfaye says the new AMI metres will substantially curb electricity theft.


The EEU serves 4.9 million customers and plans to add 600,000 more this year. However, financial strain remains a major hurdle. In its first-quarter performance, the Utility covered only 71pc of its expenses. Its total expenditures reached 16 billion Br, including 5.3 billion Br paid to EEP, 938 million Br for loan repayments, and 466 million Br for reconstruction.


The EEU has introduced gradual tariff increases, set to be fully implemented over the next four years. Some customers have already felt the impact. Mintesinot Lemma, general manager of Mintu Plast Plastic Plc, a plastic raw materials manufacturer, says that while he has not seen a major change from the smart metre installation, the tariff hikes have severely affected his electricity costs. His monthly bill for four companies was around three million Br but has recently risen by nearly 20pc.

Woineshet Moges, owner of Mechu Trading Plc, has seen her electricity bills rise by more than 20pc, putting pressure on her medium enterprise.

"It is more than we expected," she said.

The rollout of smart metres has reduced customer service workload in some districts, such as Balderas, where the initial pilot took place. Alemayehu Tadesse, a district office manager, stated that customers can now pay remotely, avoiding long queues. He told Fortune that only one complaint had been filed regarding an automatic shutoff after a usage surge.

However, power blackouts remain a major issue. The Utility reports that the country experiences an average of 46 hours of blackouts per week. The EEU is responsible for 88pc of these outages, with the remaining 12pc attributed to the EEP. Outdated infrastructure is a major factor, while power theft contributes to 24pc of shortages. Operational issues and overcurrents account for 22pc and 8pc, respectively. The most frequent cause of outages is earth faults, particularly landslides, which make up 47pc of all incidents.


The World Bank ranks Ethiopia third in Sub-Saharan Africa for energy access deficits, with nearly half the population lacking reliable electricity. While grid expansion has reached 60pc of towns and villages, the urban-rural gap remains huge. In cities, 96pc of households are connected to the grid, with Addis Abeba at 99.9pc. In contrast, only 27pc of rural households have electricity.

The situation is worse in remote areas more than 25km from the grid, where just 5pc of people have power. Even those with access face severe disruptions, 58pc of grid-connected households experience four to 14 power outages per week, with 3pc facing even more frequent blackouts.

Yemaneberhan Kiros, founder and general manager of Yomener Energy Auditing & Engineering Plc, supports the EEU's crackdown on theft, which he says is a major cause of power shortages. He urges EEU to assess high-load areas, monitor power quality, and prevent surges that damage equipment.

"Energy management has been weak," he stated. “EEU upgrade infrastructure with the latest technology.”



PUBLISHED ON Feb 02,2025 [ VOL 25 , NO 1292]


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