A lot of information has come from the last parliamentary question of Richard Duval to the minister of Energy, Joe Lesjongard. Here is this session of question and answer from the National Assembly Hansard.
Mr R. Duval (Fourth Member for Mahebourg & Plaine Magnien) has asked the Minister of Energy and Public Utilities whether, in regard to electricity, he will, for the benefit of the House, obtain from the Central Electricity Board, information as to if decision has been taken to increase the cost thereof for domestic and commercial purposes and, if so, give details thereof.
Mr Lesjongard: Mr Speaker, Sir, according to the latest published Energy and Water Statistics 2020, imported fuels comprising petroleum products and coal made up 86.7% of the total primary energy requirement in 2020. The remaining 13.3% was from local sources, namely, bagasse, hydro, wind, landfill gas, photovoltaic and fuel wood. Moreover, in 2020, the share of electricity generation from such non-renewable sources stood at 76.1%, and includes CEB’s thermal plants and the IPPs coal production. In such situation, Mr Speaker, Sir, Mauritius is very much exposed and vulnerable to fluctuations in prices on the international markets as well as exchange rates. These have a direct bearing on the CEB’s costs of production of electricity. It is to be highlighted that over the past 12 months, the price of HFO has risen by 61%, while that of coal has known a one-time high of USD430 in March this year. Mr Speaker, Sir, the House will recall that in spite of such difficult situation, the CEB had come up with special COVID-19 relief measures during the two lockdown periods to alleviate the financial burden of consumers. Thus, the vulnerable households were exempted from payment of electricity bills, surcharge was not applied and disconnection was not affected on account of non-payment of bills, over defined periods. Recently, the Prime Minister had announced a subsidy on electricity tariff for a period of 12 months, again in a spirit of solidarity with the population. Mr Speaker, Sir, in order to reduce our dependence on imports and decarbonise the energy grid, Government has a target to increase the share of renewables in electricity production while encouraging local sources of biofuel. My Ministry is actively working on achieving these targets. 66 Mr Speaker, Sir, I wish to point out that, with regard to cost of production of electricity per GWh, there is no distinction made in respect of domestic or commercial use.
Thank you, Mr Speaker Sir.
Mr R. Duval: I thank the hon. Minister. Due to the fluctuation of the foreign currency rate and fuel price, has the CEB undertaken a study to optimise his production cost by using power plant having the lowest production cost?
Mr Lesjongard: Yes, Mr Speaker, Sir. This study has already been done since last year, and that was done because of COVID-19,
Mr Speaker, Sir. Mr R. Duval: Can the hon. Minister tell the House how many households are benefiting from the domestic social tariff?
Mr Lesjongard: Yes, 62,961 households are currently benefiting from the social tariff of 110A and that tariff, they pay 31% less on the first 75 kWh consumed and there is also a further 10% as Government subsidies.
Mr R. Duval: I have a last question. My question is regarding a Press conference on 05 March where the hon. Minister announced that the CEB board would submit recommendation to Government regarding the rise of electricity tariff. Could the Minister precise when this recommendation is expected?
Mr Lesjongard: No, Mr Speaker, Sir, I cannot. It is for the CEB board to decide when they are going to submit it to the Minister.
Mr Speaker: Last supplementary!
Mr Osman Mahomed: Thank you. In relation to the increase in tariff, can I ask the hon. Minister whether, the time has not come to revisit the tariff structure, especially with regard to the industrial tariff, which CEB is selling at below production cost and the loss is being partaken to the household? Whether the time has not come – especially that the budget is forthcoming – to revisit that tariff so that people at the lower rungs of the ladder do not have to cross subsidise for the industrial tariff?
Mr Lesjongard: Yes, Mr Speaker, Sir, this is being looked into and will be taken on board in the review of the tariff.
