Ethiopia Raises Power Tariffs for Crypto Miners in New Cost-Recovery Drive

Ethiopian Electric Power (EEP) will impose higher and more complex electricity tariffs on data mining customers starting in December, replacing a fixed rate of roughly 3.14 cents per kilowatt-hour.

A notification sent to crypto mining firms outlines the new structure, effective Dec. 1, 2025, which introduces a time-of-use pricing system alongside an availability-based rate. The move comes a few months after the state-owned power provider announced it would no longer issue new permits for bitcoin miners.

“This revision is essential to ensure the continued reliability and financial sustainability of the national power supply system,” EEP said in the letter, signed by Wondwosen Teshome, Director of Energy Trading and Marketing.

Under the new model, electricity costs will vary by time of day, with peak-hour rates rising to 7.2 cents per kilowatt-hour by July 2028. An additional availability-based tariff will penalize miners who operate inconsistently, a mechanism designed to encourage stable demand on the grid.

The adjusted base tariffs are set at 5 cents or 6.5 cents per kilowatt-hour, including a 15% value-added tax and a 0.5% regulatory levy. By comparison, the previous flat rate of 3.14 cents per kilowatt-hour made continuous, 24/7 operations cheaper; the new arrangement is expected to raise the average cost for miners running around the clock.

The overhaul signals the end of simple, low-rate contracts as the utility seeks to recover rising generation and transmission costs. Ethiopia was becoming a sought-after haven for Bitcoin miners lured by its affordable electricity rates, conducive climate, and hands-off regulatory framework over the past few years.