July 30, 2025
Governance Briefs
High Electricity Costs in Bosaso: Socioeconomic Impact, Challenges, and Solutions
- Bosaso’s electricity price of USD 0.79 per kilowatt has severely impacted household affordability, business viability, and local government revenue. The extreme costs, especially during the hot season, trigger seasonal migration, reduce tax collection, and hinder urban economic activity.
- The merger of Bosaso’s two electricity providers into PEPCO, a public-private partnership, has resulted in monopolistic control, removing competitive pricing and limiting service improvements.
- While solar power is seen as a viable solution to reduce electricity costs, its adoption is limited due to high installation costs, lack of skilled labor, and poor product quality. Existing providers have shown resistance to decentralization and alternative energy sources
- The paper recommends establishing a fixed affordable electricity rate, breaking the monopoly by reopening the market to new entrants, and promoting solar energy through subsidies, regulatory
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