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Ethiopia's rivers have great potential to generate
hydro-electric power with an estimated capacity of over
30,000Mw. However, we have not been able to fully utilize
our hydro power resources because of the huge amount of
investment the sector requires.. Electric power has become
a vital source of energy, for developing countries. Most
activities in urban areas and particularly those using
modern technologies are dependent on electrical power.
With
the application of modern information and communications
technologies in public and private life, the demand for
uninterrupted supply and use of electricity has become
decisive. Increasingly, it has become indispensable. Without
alternative sources of energy such as solar or thermo power
or diesel generators, it has become challenging to conduct
normal industrial and commercial activities run by public or
private undertakings.
First
established in 1942 and then incorporated by the imperial
charter as a corporate body more than half a century ago,
the Ethiopian Electric and Power Corporation (EEPCo), has
been the only publicly owned supplier of electric power in
the country. Since its establishment in 1956, the goal of
the corporation has been to engage in the business of
generating, transmitting, distributing and selling
electrical energy to its customers in Ethiopia. It is
therefore a business organization with the primary focus to
attain its objective and generate a profit.
The
last 15 years have witnessed an unprecedented increase in
hydro power supplies. Various local and international
financial institutions, as well as lending countries, have
supported the construction of mega hydro-electric power
generation projects. At the same time, a consummate rise and
insatiable demand for electric power has occurred.
Consequently, EEPCo is faced with serious predicaments of
meeting the demand, to engage in business activities and
generate profits, and as a publicly owned enterprise, comply
with "the economic and social development policies and
priorities of the government," as it is articulated in its
establishment regulation.
Obviously, the corporation is required to assume
incompatible and, at times, contradictory responsibilities
and attain conflicting aims., For example, EEPCo continues
to conclude power supply contracts and enter into firm
commitments to provide "regular power supply" while it is
also attempting to implement primarily politically motivated
policy directions of "reaching the un-reached," through its
rural electrification or universal access to electricity
programme which is not necessarily commercially viable.
Where
the available power resource and reserve is limited or on
decline, the commercial purpose of the corporation is bound
to get compromised. Services are provided inefficiently at
the expense of parties to power supply contracts.
EEPCo's
current quagmire in respect of power supply contracts can be
explained in part by these factors. It is more clearly
understandable if one can examine the statutory objective of
the corporation under its establishment regulation.
Over
the past few weeks, this newspaper has had extensive
coverage of the power crisis-a burning issue during our
time. In a desperate attempt to inform the public of the
root or temporary causes that resulted in the existing
predicament and the promised well lit or bright future
waiting Ethiopia as explained by the Corporation officials.
No doubt, this newspaper exerted enormous time and energy to
find out the real reasons behind the current power shedding
that will frustratingly continue for the coming months
until, as has been clarified time and again, the completion
of newly constructed power generation facilities and the new
or existing dams are full after the forthcoming but still
uncertain rain water, to the satisfaction of EEPCo
officials.
It has
now become customary for managers at EEPCo to discuss the
electric power interruption, shortage, shedding, unreliable
supply, and deficit crisis in very conflicting and
inconsistent conjectures. Among the numerous causes of the
present problems, according to officials in EEPCo are:
"imbalance in supply and demand," "unprecedented economic
growth," "social development," "environmental situations,"
"population growth," and "evaporation."
These
same managers of EEPCo unashamedly present the solution and
pledge a rosy future akin to a dreamland. They urge
customers to bear the cost and resume shouldering "temporary
power sufferings."
The
major culprits responsible for most of today's power crisis
are offered, through the public and private media, ample
opportunity to feed customers with all kinds of unpalatable
excuses for inefficient, under-managed and poor planning of
power and electric services. It is unfortunate that no one
bothered to approach and confront yet another lethargic and
voiceless public agency mandated to regulate EEPCo and other
future electric power generation, transmission, distribution
and sale enterprises.
The
Ethiopian Electric Agency (EEA) was established under
proclamation issued in 1997; it is - supposedly - empowered
to regulate and ensure "the activities of electricity
suppliers . . . for the supply of efficient, reliable, high
quality and economical electricity services."
This
agency is also legally mandated to supervise, among others,
the supply of electricity to customers on regular basis and
even revoke the license it issued to private or public
enterprises, including EEPCo, where there is "repeated
interruption, reduction or termination of electricity supply
in the absence of force majeure." Despite the vast coverage
of news stories, features, interviews, and articles in the
print and electronic media, I have not come across a tinsel
of information tendered or provided by the agency.
No one
dared to ask what the agency is doing with respect to
enforcing its legislative power nor solicited its opinion
whether the existing power interruption is due to "force
majeure"; if not, what measure has is taken to remedy
the violation.
If the
agency shares the rhetoric and conjectures on the causes,
effects and solutions tendered by EEPCo officials, it
appears that the agency has so far been utterly complacent
to the ordeals of unwarranted power interruptions. It seems
to have slept unaffected to the public outcry, leaving power
customers to arbitrary and wanton disregard. No one knows
when this agency shall wake up from its deep slumber and
assert its very existence to account for the wasteful use of
taxpayers' money.
The
agency, as a regulatory body protecting the public, is
supposed to impose a reserve of electric power supplies of
20pc, issue guidelines and directives to determine the
amount of compensation for customers for un-served power and
unjustified power supply failure, decide the existence of
force majeure during power interruptions and carry out a
host of other activities to protect and safeguard customers.
This agency was expected to thwart any plan and voice
against misguided action that impose the universal access to
electricity at the expense of inefficiently served power
customers.
The
agency should have taken the initiative to explain to the
public the actual, authoritative and legitimate causes for
power interruptions, rather than forgo this responsibility
to inconsistent, conflicting and unacceptable public
information provided by persons not so mandated by law or by
the agency.
I have
no knowledge of the agency's attempt to investigate and put
the record straight when confusing information shrouded with
lies was provided last year to the public. After a
substantial and more than average rainfall available,
managers of EEPCo blamed lack of adequate rainfall and
subsequently attributed an increase in demand for more power
supply due to the double digit economic growth of the
country.
EEPCo
was not established to be a charitable organization or
provide social equity services by fairly distributing power
supplies to all in need. EEPCo should have to serve and
satisfy its long time and corporate customers before
considering entering in to other contracts of power
supplies. In fact, the dictates of government priorities may
not necessarily tally with its business objectives. However,
it would have to know that contracts entered earlier should
be properly observed before entering into other contracts.
EEPCo's customers ought not to shoulder the inefficiency of
poor power management.
Despite
the Corporation's behavior, an active regulatory body could
have done a good job as public watchdog to enforce
discipline and good business conduct. Unfortunately, both
the power monopoly corporation and the regulatory body
happen to belong to one and the same ownership. It is highly
improbable for customers to get fairness and justice when
the culprit and the judge are the same.
It
seems, therefore, customers will continue to suffer until
this scenario is changed for good or the rule of law is
upheld. |