Electricity Price Hike Sparks Concerns in Beledweyne

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Residents of Beledweyne express sgrowing concern after two of the city’s main electricity providers, Dayah Power Company and Al-Towba Company, announced an increase in the minimum monthly electricity charge, raising fears about the impact on low-income households and small businesses.

According to notices issued by the companies, the minimum monthly fee charged to customers has increased from $7 to $12, representing a rise of approximately 71 percent.

The change means that customers will now be required to pay at least $12 per month regardless of how little electricity they consume.

Under the previous system, customers whose electricity usage fell below the minimum threshold were still charged a flat fee of $7.

With the new pricing structure, even households that consume electricity worth only a few dollars will be required to pay the new minimum charge.

The increase has triggered criticism from some residents, who argue that the higher fee places an additional burden on families already struggling with rising living costs.

Many have questioned the reasons behind the increase and called on electricity providers to clearly explain the factors that led to the decision.

The issue is particularly sensitive for low-income households and small-scale businesses that depend on affordable electricity for daily activities.

Residents fear the higher charges could place additional financial pressure on vulnerable families, especially those with limited incomes and modest power consumption.

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The increase is also expected to affect businesses across Beledweyne, where electricity remains essential for commercial activity. Shops, restaurants, hotels, clinics, schools and offices all rely on a stable power supply to operate.

Business owners warn that higher electricity costs may eventually be passed on to consumers through increased prices for goods and services.

Such a development could further strain household budgets at a time when many families are already facing economic challenges.

For many residents, the debate is not only about the price increase itself but also about the broader affordability of electricity in a city where reliable power remains a critical service.

Electricity services in Beledweyne are largely provided by private companies, including Dayah Power Company, Al-Towba Electricity Company, and Gacmodheere Superpower.

Dayah Power, one of the city’s longest-operating energy providers, has been serving residents of Beledweyne and surrounding areas for decades. Company records indicate that it was established in 1991 and has played a significant role in supplying electricity to the city.

Previous studies on Somalia’s energy sector have identified Dayah Power and Al-Towba as key electricity providers in Hiiraan region, helping meet growing demand in one of central Somalia’s largest urban centers.

Reports supported by development partners have also noted that electricity prices in Beledweyne have historically remained among the highest operational costs faced by households and businesses, reflecting the challenges of generating power through privately operated systems largely dependent on fuel-powered generators.

The latest increase has renewed calls for greater transparency in the electricity sector.

Residents are urging providers to explain the costs associated with fuel, maintenance, equipment, network expansion and other operational expenses that may have contributed to the decision.

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Consumer advocates argue that customers have a right to understand how electricity pricing is determined, including the relationship between per-kilowatt-hour charges and minimum monthly fees.

Local authorities and community leaders are also being urged to engage with electricity providers to ensure that the interests of both investors and consumers are protected.

Energy experts say greater investment in solar power and battery storage systems could help reduce long-term electricity costs in Beledweyne.

Dayah Power and other energy companies have previously explored solar-energy solutions, which many analysts believe could lower dependence on costly diesel generators.

Increased use of renewable energy could eventually reduce production costs and help make electricity more affordable for consumers.

The controversy has also revived discussions about competition in the city’s electricity market. Some residents believe that allowing more companies to enter the sector could encourage innovation, improve service quality and create downward pressure on prices.

Supporters of greater competition argue that new entrants could introduce modern technologies and alternative energy solutions, giving consumers more options while encouraging existing providers to improve efficiency.

As Beledweyne continues to grow, demand for electricity is expected to increase significantly.

Industry observers say the challenge will be finding a balance between ensuring electricity companies can recover their costs and invest in infrastructure while keeping prices affordable for consumers.

For now, the increase in the minimum monthly charge from $7 to $12 has sparked a city-wide debate about the future of electricity services, affordability and the need for sustainable energy solutions in Beledweyne.

Residents say they support reliable and improved electricity services but are calling for greater transparency and consideration for ordinary consumers who may struggle to absorb the latest increase in costs.

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