Tunisia's STEG faces financial crisis with billions in debt and unpaid dues

The Société Tunisienne de l’Électricité et du Gaz (STEG) is confronting a critical financial situation, burdened by substantial debt and significant unpaid receivables. As of June 23, 2026, the company's total debt has climbed to 7.356 billion dinars. Compounding this issue, unpaid dues from individuals, businesses, and public and private institutions amount to over 6.061 billion dinars.

These alarming figures were presented by STEG representatives during a hearing before the Finance and Budget Commission of the Assembly of the Representatives of the People. The discussions focused on two draft laws approving guarantee agreements intended to support the company. These agreements include a loan of 384.8 million euros (approximately 1.27 billion dinars) from the International Bank for Reconstruction and Development (IBRD) and a $30 million financing (nearly 87 million dinars) from the same institution acting as an accredited entity of the Clean Technology Fund.

STEG officials explained that these financings are part of a contract-program for 2024-2028, signed with the Tunisian state on February 5, 2025. This program outlines a series of reforms aimed at restoring the company's financial balance, improving its technical and commercial performance, and enhancing its governance. The company highlighted its role as a pillar of national energy security but pointed to structural challenges.

These challenges include electricity and gas sale tariffs that are lower than actual production costs, accumulated unpaid compensation from the state, increasing debt, energy losses, and the impact of fluctuating oil prices and the dinar's exchange rate. STEG noted that over 95% of Tunisia's electricity production relies on natural gas, with fuel costs constituting approximately 72% of electricity production costs and 89% of gas production costs. The contract-program sets strategic goals, including increasing the share of renewable energy in national electricity production to 27% by 2028 and 35% by 2030, reducing energy supply costs, alleviating compensation expenses, improving STEG's net result, and attracting private investment while reducing carbon emissions.