ENEO Announces Compensations Over Delay In VAT Suppression On Electricity Bills

Cameroon’s power utility Eneo wants to make up for delay in VAT suppression on electricity bills. 80% of its 1.2 million customers should have seen their electricity bills fall since January 2019 as provided for in the 2019 Finance Act.

Monthly consumption between 0 and 220 KW will now be Value Added Tax-free (VAT= 19.25%). But the measure is still not yet implemented because Eneo is 1 to 2 months behind schedule, sources said. “The provision of the 2019 Finance Act broadening the VAT exemption bracket in the electricity tariff grid in Cameroon remains applicable. Its effective entry into force depends on a review of Eneo Cameroon’s business management system. This technical update is still in progress, the company explained to its customers in February and March 2019.

To make up for this delay, the power company announces it is putting in place a compensation mechanism once the business management system is updated. “It targets both customers normally benefiting from the exemption and those whose new calculation methods increase the final amount of bills,” Eneo said.

According to reliable sources, the update of the billing system is completed and reached first beneficiaries in the March 2019 bills distributed in April. All other affected customers are expected to see the tax relief in April’s bills that will be distributed this month.

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