Somaliland police initiated an operation on Monday night targeting multiple electricity companies accused of violating government directives on power tariffs. The move escalates a months-long dispute between authorities and private electricity providers over proposed price increases. The companies, including Sompower, Indho-birta, and Telesom Tec, had sought to raise electricity prices citing increased fuel and supply costs.
The Somaliland Energy Regulatory Commission had instructed consumers not to pay more than 59 cents per kilowatt-hour, deeming it the maximum tariff permitted under the government’s pricing policy. Despite this, the electricity companies proceeded with their plans for tariff increases. The government had previously rejected unilateral tariff hikes, arguing that providers did not have the authority to change prices outside the officially approved regulatory framework.
The Somaliland Electricity Companies Association defended the proposed increases, stating that providers had absorbed rising fuel and supply costs for about six months. They argued that tariff changes were necessary to maintain reliable service. However, the government maintained that any price adjustments must be within the officially approved regulatory framework.
The police operation was carried out under Article 15, Subsection 4 of the Somaliland Police Force Law. Authorities claimed that the companies had failed to appear before the Criminal Investigation Department despite repeated summonses over alleged violations of a presidential directive and instructions issued by the Somaliland Energy Regulatory Commission.
The dispute intensified when Somaliland President Abdirahman Mohamed Abdullahi Irro declared that any electricity price increase imposed without agreement with the government would be invalid. The president's statement added another layer of complexity to the ongoing dispute between the government and electricity providers.
Authorities rejected allegations by Indho-birta that officers used excessive force during the operation. However, police did not disclose whether company executives were arrested or provide details of any other enforcement measures taken against the electricity providers. The outcome of the dispute and whether the companies will accept the 59-cent ceiling remains unclear.
The situation may move into further regulatory or legal action as the government and electricity companies have yet to reach a resolution. The Somaliland Energy Regulatory Commission Chairman Cabdi Egeh Ahmed had played a key role in setting the tariff limits. The government's firm stance on tariff increases indicates a challenging environment for electricity providers operating in Somaliland.
Key points
- The Somaliland police operation targeted several electricity companies, including Sompower, Indho-birta, and Telesom Tec.
- The government had set a maximum tariff of 59 cents per kilowatt-hour, which the electricity companies were required to adhere to.
- The dispute may escalate into further regulatory or legal action if a resolution is not reached between the government and electricity providers.
