During a parliamentary hearing, officials of the Ministry of Industry said that the average electricity price in Tunisia is currently 472 millimes per kilowatt hour, including 70% linked to the cost of natural gas. A fragile balance, maintained thanks to subsidies and the use of Islamic funding.
The electricity rate in Tunisia amounts to an average of 472 millimes per kilowatt hour, officials of the Ministry of Industry, Mines and Energy said on Monday during a hearing session held by the Parliamentary Finance and Budget Commission. A large part of this cost – exactly 70% – is linked to the price of natural gas, the country’s main source of energy supply.
Heavy grants
This hearing was devoted to the examination of the so -called “Mourabaha” financing agreement, concluded between the Tunisian electricity and gas company (STEG) and the International Islamic Trade Financing Company (ITFC), to ensure the import of natural gas. It is a financing mechanism in accordance with the principles of Islamic finance, intended to strengthen the cash of the STEG.
Ministry’s representatives said 85% of STEG subscribers consume less than 200 kWh per month, a figure that testifies to moderate consumption but also a high weight of subsidies. Indeed, almost 40% of the electricity rate would currently be covered by the State, a considerable budgetary effort.
Towards a conditioned tariff reform
Government officials have stressed that no rise in electricity or gas prices will be envisaged without the prior completion of an in -depth study, insisting on the need for STEG to reduce its production costs. The medium -term objective is to guarantee a clear vision of pricing for the years to come, by integrating more renewable energies in order to strengthen the country’s energy independence.
