Morocco Electricity: 17bn Dirhams in Aid Over 4 Years
The Moroccan state paid 17 billion dirhams in support to ONEE between 2022 and 2025 to keep electricity tariffs stable, as the sector prepares a 219-billion-dirham investment plan through 2030.
The Moroccan state paid 17 billion dirhams in financial support to the National Office of Electricity and Drinking Water (ONEE) over four years, between 2022 and 2025, as part of a policy to keep electricity tariffs stable for all categories of consumers despite the continued rise in global energy costs. The figures appear in the economic and financial report accompanying the 2027 Finance Bill.
Why did the state step in?
The report explains that these financial transfers to ONEE were meant to avoid passing the global rise in energy prices directly on to consumers' bills, preserving household purchasing power and supporting continued economic activity. In turn, the report notes that this support added to the pressure on public finances, which already face rising funding needs in social sectors and public investment.
ONEE's deficit and debt in 2024 and 2025
| Indicator | 2024 | 2025 |
|---|---|---|
| Net loss | 7.286 | 6.963 |
| Operating deficit | 4.246 | 5.252 |
The report forecasts another rise in ONEE's net loss in 2026, to 8.625 billion dirhams. Its revenue fell 2.5% in 2025 to 41.466 billion dirhams, a decline the report partly attributes to the transfer of electricity distribution to regional multi-service companies. ONEE's debt reached about 55.930 billion dirhams at the end of 2025, up 1.236 billion dirhams from the previous year, mainly due to a 5-billion-dirham bond loan, while the report forecasts debt falling 17% to 46.569 billion dirhams by the end of 2026.
The report attributes part of the pressure on ONEE's accounts to a 32.6% rise in the energy products import bill by the end of August 2026, as the World Bank's energy price index rose 26% during the first eight months of the year, with Brent crude ranging from about $104 a barrel in the second quarter to $83 in July and then $91 in August.
A 219-billion-dirham investment plan through 2030
This financial situation comes amid a sweeping restructuring of ONEE, which is preparing to become a public limited company, after electricity distribution was transferred to 12 regional multi-service companies starting 1 November 2025, under an agreement signed in November 2025 between the state, the National Agency for the Strategic Management of State Shareholdings, ONEE and the Moroccan Agency for Sustainable Energy (Masen).
The sector plans to invest 219.1 billion dirhams between 2026 and 2030, of which 177 billion dirhams for electricity and 42.1 billion dirhams for water, with the private sector expected to fund 72% of that amount. Electricity plans include adding 14.34 GW of renewable capacity, along with storage facilities and grid expansion, as well as tripling the capacity of the Morocco-Spain electricity interconnection from its current level of 700 MW, in addition to developing an interconnection with Mauritania. On water, plans include adding 2.68 million m³/day of capacity, of which 2.16 million m³ via seawater desalination, along with about 2,200 km of water transport pipelines. The report projects investments of 16.49 billion dirhams in 2027, 20.862 billion dirhams in 2028 and 18.602 billion dirhams in 2029.
Will the bill go up?
The report announces no imminent change to electricity tariffs, but warns that any future price increase would directly affect household bills and business costs, and ties the continuation of stable tariffs to ONEE's ability to improve its financial margins amid continued pressure on public finances.