Counting the cost: Coping with tariff increases amidst power supply shortfalls in urban households in Ethiopia

Although affordability is important, people do not need to be money poor to experience energy deprivation. This paper examines how an electricity tariff increase affects household energy consumption by situating the price change within the broader context of energy service provision in Ethiopia. We place households’ lived experience in interaction with the institutional and infrastructural dynamics that constitute the energy sector in Addis Ababa to observe how the price increase intersects with service provision. Since the tariff increase was implemented, households have changed their daily routines to control cost. Our findings show that energy consumption behaviour is also shaped by service-related inadequacies (unreliable supply and frequent power outages). However, families coping capacity (to the tariff increase and power supply shortfalls) is undermined by an energy market that is rife with information asymmetries and uncertainties. Thus, although socioeconomic factors underpin the energy insecurity households experience, inadequate supply, and diminishing confidence in service providing institutions appears to heighten their vulnerability. The paper argues that while the price change has an overall effect on consumption, its impact needs to be seen within the context of its systemic interaction with the broader energy governance and service delivery challenges.