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Ezra and JEDCO apply for heavy fuel tax exemption to sustain reliable electricity

By Louis Loku

A sub-committee of the Ministerial High-Level Committee on Economic Reform has inspected Ezra Power Plant to assess its Heavy Fuel Oil (HFO) requirements as the government reviews the company’s request for tax exemptions aimed at sustaining electricity supply amid rising fuel costs.

The inspection team was led by the Minister of Water Resources and Irrigation, James Mawich, who serves as the rapporteur of the committee, and the Minister of Livestock and Fisheries, Onyoti Adigo, a committee member.

They were accompanied by the undersecretary in the Ministry of Energy and Dams, Macham Macham Angui, and technical officials from the ministry.

Speaking to journalists after the visit, Minister Mawich said the inspection was prompted by Ezra Power Plant’s application for tax exemption on heavy fuel oil, which is used to operate the company’s power generators supplying electricity to Juba.

He said the committee assessed the company’s fuel storage facilities to verify the quantity and quality of fuel required to maintain uninterrupted electricity generation and ensure affordable power for consumers.

“Our visit was to inspect the storage capacity and determine the amount of heavy fuel oil needed to keep the generators running efficiently while ensuring a reliable electricity supply to the residents of Juba,” Mawich said.

He revealed that the High-Level Committee had approved the release of 20 fuel trucks from a consignment of 100 trucks currently stranded at the Nimule border crossing.

The remaining trucks, he said, will be reviewed individually to ensure compliance with the presidential order cancelling non-statutory tax exemptions.

“The committee approved the release of 20 trucks, while each remaining request will be assessed on a case-by-case basis in line with the presidential directive on the cancellation of non-statutory tax exemptions,” he said.

Mawich added that Ezra Power Plant, together with officials from the Ministry of Energy and Dams, has been tasked with submitting a comprehensive report to the high-level committee within the shortest possible time to facilitate a final decision on the company’s request for a tax exemption on heavy fuel oil imports.

The Undersecretary of the Ministry of Energy and Dams, Hon. Macham Macham Angui, underscored the importance of granting tax relief on fuel for electricity producers, saying such support is necessary to shield consumers from rising electricity tariffs.

He noted that both Ezra Power Plant and JEDCO play a critical role in supplying electricity to Juba and require affordable fuel to maintain stable electricity prices.

“A fuel subsidy in the form of tax exemption is important for companies like Ezra and JEDCO because it helps keep electricity prices stable and ensures continuous power supply,” Angui said.

Meanwhile, the country operations manager of Ezra Power Plant, Amanuel Ghebre, reaffirmed the company’s commitment to complying with South Sudan’s laws and regulations.

He said Ezra remains dedicated to providing reliable electricity services while operating within the country’s legal framework.

The visit forms part of the government’s broader economic reform agenda aimed at balancing fiscal discipline with the need to sustain essential public services, including electricity supply, following the implementation of the Presidential Order abolishing non-statutory tax exemptions.

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