In Tunisia, the national electric company should return to financial equilibrium in 2025, according to the strategic plan negotiated with the ministries of Energy and Finance. It currently depends on $ 700 million in public subsidies to honor all of its obligations.
The Tunisian Electricity and Gas Company (STEG) will regain its financial balance in 2025 according to its CEO, Mohamed Ammar. The company, like many other public entities, faces serious financial difficulties.
It is currently negotiating a strategic plan with the Ministry of Finance and that of Energy for 2030 in order to remedy it. Ammar has, however, reassured about rumors of an increase in electricity tariffs. He says the company is focusing for the moment on rationalizing its expenses and obtaining a reduction in the cost of acquiring gas.
STEG’s financial imbalance comes mainly from the fact that it has an electricity tariff 25% lower than the real cost of producing electricity. This makes it dependent on government grants of more than $ 700 million, which have been lacking in recent years, however.
In the meantime, the company has announced the entry into service of all the production units of the thermoelectric power station of Borj El Amri (624 MW) in order to meet the growing energy demand. The infrastructure, whose construction work started in 2018, cost $ 210 million financed with the support of the Islamic Development Bank and was built with the support of the Italian ANSALDO Energia.
Source: Agence Ecofin