he country suffers heavily from a poor financing of domestic energy resources

he country suffers heavily from a poor financing of domestic energy resources, less than par generation capacities, in addition to a poor management and legal framework; conditions which render energy delivery a challenging task. While government subsidies for the sector rose from 1.7 billion USD in 2011 to around 2.2 billion USD in 2012, electricity supply remains poor with persistent power outages for several hours per day in all parts of the country including the capital. Since 2003, electricity production and total electricity consumption has widened from 345 million kWh to 7,815 kWh in 2011. Accordingly, EDL only satisfies 63% of peak demand. The electricity tariff is based on 25 USD/barrel however this price has now surged to 70 USD/barrel. Coupled with the fact that the price of electricity has been stable at 0.132 USD for consumption surpassing 501 kWh/month, EDL is incurring high operational costs due to government subsidies yet fails to cover its basic costs. EDL’s technical losses stood at 15% from 2002 to 2007 while the global average is an average of 9%. Due to this rampant mismanagement, government resources transferred to EDL are depleting the state’s treasury. The treasury’s transfers’ share in GDP and in total budget expenditures increased from 3% and 12% respectively to 5% and 22% in 2012, respectively.