Somaliland police have launched an operation targeting several electricity companies accused of defying government orders on power tariffs, escalating a months-long dispute over proposed price increases and the regulation of electricity costs.
The operation was conducted on Monday night, November 2, following allegations that the companies had ignored repeated summonses from the Criminal Investigation Department (CID) over their failure to comply with a presidential directive and instructions issued by the Somaliland Energy Regulatory Commission.
The targeted providers include Sompower, Indho-birta and Telesom Tec, which have been at the centre of a disagreement with authorities over plans to increase electricity charges in response to rising fuel and supply costs.
Police said the operation followed the companies’ failure to honour repeated requests to appear before investigators to respond to allegations of violating government directives.
Government insists on 59-cent electricity tariff
The dispute centres on the government’s efforts to prevent electricity providers from independently adjusting consumer tariffs without regulatory approval.
Somaliland Energy Regulatory Commission Chairman Cabdi Egeh Ahmed had previously directed electricity consumers not to pay more than 59 cents per kilowatt-hour, describing the figure as the maximum permitted charge under the government’s pricing policy.
Authorities have maintained that electricity companies cannot impose higher rates without following the officially approved regulatory framework.
President Abdirahman Mohamed Abdullahi Irro also weighed in on the dispute this week, declaring that any electricity price increase introduced without an agreement with the government would be invalid.
His position reinforced the administration’s opposition to unilateral tariff adjustments by private electricity providers.
The electricity providers, however, have defended their proposed increases, arguing that rising fuel prices and other operational expenses have made existing tariffs increasingly difficult to sustain.
The Somaliland Electricity Companies Association said its members had absorbed higher fuel and supply costs for approximately six months without adjusting what consumers paid for electricity.
The association maintained that continued increases in operating expenses had placed considerable pressure on power producers and that tariff adjustments were necessary to maintain reliable electricity services.
Police respond to claims of excessive force
In explaining Monday night’s operation, police cited Article 15, Subsection 4 of the Somaliland Police Force Law, saying the provision provided the legal basis for their intervention.
Authorities also dismissed allegations by Indho-birta that officers used excessive force during the operation, arguing that the company’s account did not accurately represent what happened.
However, the police did not disclose whether any company executives had been arrested or provide details of additional enforcement measures taken against the targeted providers.
The latest intervention marks an escalation in the government’s efforts to enforce its electricity pricing directives after months of disagreement with private power companies.
It remains unclear whether Sompower, Indho-birta and Telesom Tec will comply with the 59-cent-per-kilowatt-hour ceiling or pursue further regulatory and legal avenues to challenge the restrictions.