Aden Electricity Corporation terminates contracts for purchased energy operating on diesel fuel

The General Electricity Corporation in the interim capital, Aden, southern Yemen, has ended contracts for purchased power that runs on diesel fuel, in a move aimed at reducing expenses and improving the efficiency of electricity supplies.

In a memo dated Monday, the Director of the Electricity Corporation, Mujib Al-Shuaibi, informed four companies that purchased energy, namely “Al-Saadi Commercial Group, Al-Ahram Energy, Al-Olayan Energy, and Sabson Energy,” to terminate the contracts immediately.

According to the memorandum, the decision came based on the directives of the Prime Minister as well as the directives of the Minister of Electricity and Energy regarding the cancellation of contracts for purchased diesel-powered energy at the stations of “Mansoura, Air Defense, Saadi, Al-Malab, Hajif, and Khormaksar.”

The Electricity Corporation attributed this step to "the inability to provide the necessary operating fuel for power purchase stations and the resulting contractual obligations for unproductive energy and financial losses, as well as the difficulty of implementing contractual obligations by the government towards the corporation."

The Electricity Corporation decides to immediately terminate the contracts and extensions of rented energy in Aden that operate on diesel fuel.

◀️ Rented energy:

🔸️Bajrash 30 MB
🔸️Al-Saadi 10 mega
🔸️Al-Ahram 30 MB
🔸️Alian Stadium 10 mega
🔸️Aliyan Al-Saadi 20 mega
🔸️Aliyan Hajif 10 mega pic.twitter.com/lHpCZG6ppi

— Abdulrahman Anis (@abdulrahmananis) February 17, 2025

The Corporation called on companies to withdraw their equipment and evacuate the sites immediately, noting the need to announce the receipt of new offers to supply energy according to new contractual procedures based on the required specifications and contract terms.

According to official reports, the Yemeni government spends about $100 million per month on purchasing energy and fuel for the liberated areas, 60 percent of which is for electricity in Aden alone. However, the temporary capital is witnessing an ongoing electricity crisis, without any real solutions.

A parliamentary report previously revealed that the electricity file of the interim capital, Aden, had turned into a "black hole" for swallowing public money, in favor of networks of interests and companies purchasing energy, and fuel importers, with the spread of the phenomenon of financial corruption, administrative irregularities, and disruption in three entities related to this sector, which has exhausted the state budget and citizens.