Monday, May 27, 2024

High street lighting costs worry EDM

Electricidade de Moçambique (EDM) has expressed concern about the high costs of public lighting throughout the country, which amount to 20 million dollars (1.2 million meticais) a year, due to the lack of a purchase subsidy. Lighting is supplied to cities, large urban centers, towns and neighborhoods, with the costs falling directly on the company, which has to feed a consumption of more than 1080 Megawatts (MW), representing a 50% increase in consumption over the last three years due to the increase in the number of consumers.

To deal with this situation, a forum was set up with the Ministry of Mineral Resources and Energy (MIREMI), EDM and the Energy Regulatory Authority (ARENE) to find alternatives to meet the costs of public lighting.

The head of EDM’s Commercial Directorate, Belmiro Óscar, pointed out that the company used to supply 500 MW at peak times, but now supplies 1080 MW, and the shortfall is purchased from private suppliers at very high prices. This is forcing EDM to make a cost containment plan and restructure its business model to ensure sustainability and meet the agenda of universal electrification by 2030.

According to Belmiro Oscar, EDM is ready to meet the target of electrifying the entire national territory, despite the challenges. He stressed the importance of finding a suitable model to make the energy business sustainable, applying proper management to achieve this goal. Decree no. 42/2005 establishes that EDM must build, operate and maintain public lighting systems as requested by the state body, defining the corresponding commercial conditions, which implies that the cost of public lighting should be subsidized by those who request it, including the cost of energy spent by traffic lights in municipalities, which should be subsidized by the municipalities.

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