Morocco spent MAD 17 billion between 2022 and 2025 to prevent electricity price increases, as the National Office of Electricity and Drinking Water (ONEE) faces projected losses exceeding MAD 8.6 billion in 2026.
According to the economic and financial report accompanying the 2027 Finance Bill, government transfers helped ONEE absorb rising international energy costs without passing them directly to households and businesses.
The support maintained electricity tariffs despite volatile fuel prices, but placed additional pressure on public finances.
ONEE recorded a net loss of MAD 6.96 billion in 2025, compared with MAD 7.29 billion in 2024. Its deficit is projected to widen to MAD 8.63 billion this year.
The utility’s revenue declined 2.5% to MAD 41.47 billion in 2025, partly reflecting the transfer of distribution activities to Morocco’s 12 regional multiservice companies.
Financial debt increased to MAD 55.93 billion, while investment reached MAD 7.36 billion, representing 68% of its initial investment budget.
The government is preparing a broader restructuring of ONEE, including its transformation into a joint-stock company.
Its 2026–2030 investment plan totals MAD 219.1 billion, including MAD 177 billion for electricity infrastructure and MAD 42.1 billion for drinking water.
Private investors are expected to finance 72% of the program.
Projects include 14.34 gigawatts of additional renewable generation capacity, expanded electricity storage, stronger interconnections with Spain and Mauritania, and increased desalination capacity.
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