The Société Camerounaise d'Électricité (Socadel), established on May 4, 2026, by presidential decree to replace Energy of Cameroon (Eneo), faces significant financial challenges from its inception. Socadel inherits a fragile financial situation, characterized by a structural imbalance and high debt, threatening the stability of the electricity sector.
Eneo's total outstanding debt is estimated at nearly FCFA 850 billion. Furthermore, the Eneo Restructuring Plan for 2026-2028 reveals a monthly gap of FCFA 13 billion between collected revenues and necessary expenses. The company invoices an average of FCFA 40 billion per month but collects only FCFA 31 billion, while its monthly expenses reach FCFA 44 billion.
In detail, monthly billing is divided among households and industries (FCFA 33 billion), public administrations and decentralized local authorities (FCFA 3 billion), public entities (FCFA 3.5 billion), and other high-voltage customers (FCFA 0.5 billion). However, the overall collection rate is only 77.5%, which is considered low. Monthly expenses include fuel (FCFA 4 billion), energy purchases (FCFA 24 billion), fixed operating costs (FCFA 11 billion), financial expenses (FCFA 1 billion), miscellaneous expenses (FCFA 1.7 billion), and income tax (FCFA 2 billion).
To ensure a return to financial equilibrium, it is imperative to mobilize at least an additional FCFA 13 billion per month, supplementing current revenues. The government is considering a 15% increase in electricity tariffs for businesses consuming more than 220 kWh per month to reduce pressure on public finances and support Socadel's financial recovery. This measure will not affect households, small businesses, and low-consumption professional users.
Socadel will also face challenges such as aging infrastructure, limited production capacity, and distribution inefficiencies. Despite the commissioning of the Nachtigal hydroelectric dam in March 2025, which increased installed capacity by approximately 30%, electricity shortages persist. The government is working to improve the efficiency of electricity production, distribution, and management, while addressing complaints about service quality. The new company will need to make tangible improvements quickly to restore public confidence.
