DOUALA, Jan 19 – Cameroon’s power utility Eneo said delayed and insufficient payments by the state and its agencies in 2024 significantly worsened outstanding arrears, placing additional pressure on the company’s finances.
In its annual report, Eneo said the year was marked by a weaker payment effort from public administrations. The central government and its agencies paid just CFA59 billion, ($104.8 million), over the full year, an amount the utility said was insufficient to cover obligations accrued during the period.
Large state owned electricity consumers also fell short of their payment commitments. Aluminium producer Alucam and water utility Camwater paid a combined CFA6 billion in 2024, despite being among the largest users of electricity on Cameroon’s national grid.
Eneo said it received almost no payments for public lighting during the year and collected no tariff compensation, even though both typically represent key revenue streams. The resulting gaps, the company said, amounted to several million U.S. dollars.
The issue has persisted for years. In an interview, Eneo Chief Executive Officer Amine Homman Ludiye said the utility issues roughly CFA7 billion in monthly bills to public entities. However, collections totaled just CFA1.5 billion in January 2024 and CFA1.8 billion in February.
To address the buildup of arrears, the government plans to automate electricity bill payments by public entities starting in 2026. The proposed system would integrate electricity bills for the previous month into the current salary payment file, ensuring arrears are reflected in public budgets.
Under the plan, subsidies would be deducted at source from institutions with persistent debts, while electricity charges owed by public enterprises receiving advance payments would be automatically withheld.
If implemented as scheduled, the measures could significantly improve cash flows in Cameroon’s power sector by ensuring more predictable payments for public electricity consumption and easing financial pressure on Eneo.
