Ministry of Electricity denies threats of black-outs for 6 governorates

News of a British company’s intention to cut off the electricity supply to some governorates was denied by Dr. Mustafa Buhran, Minister of Electricity and Energy. The Minister confirmed that the published news goes back to a previous dispute, and was obtained by a newspaper correspondent who either negligently published it, or published it with the intention of creating public unrest.

The Minister declined to speak about the agreement’s details, yet he mentioned that the agreement regarding electricity lease contracts was signed by the previous government, adding that the issue of debts had been dealt with.

Sources from the electricity corporation spoke of contracts with a temporary, off-shore electricity company for the sum of $3.5 million per month, to deal with current shortages. 

Media news said that the British electricity-generating company had threatened the Yemeni electricity ministry with disconnecting the supply to six cities if they did not pay the outstanding amount owing of $7.5 million. Reports spoke of a British company by the name of Jericho, that has been supplying parts of Aden governorate, Hodeidah, Hadramout, Amran, Taiz and Sayoun with electricity according to a contract between the company and the ministry for the past year.
 
Sources attributed the company’s measures to the Yemeni corporation’s failure to pay the sum of  YR1.5 billion ($7.5 million) for electricity supply for the months of December and January.

Some reports disclosed that the Yemeni Ministry of Electricity and Energy and its corporation are suffering hard times, as evidenced by their failure to pay the British company, which sells huge amounts of  electricity used in lighting and operating industrial plants in the previously mentioned areas.

Critics of the electricity ministry said that it could have supplied these cities with power by building two generating stations at the cost of $60 million, instead of paying that same amount to the British company for a one year supply.

Yemen suffers a 30 percent deficit in electricity supply, due to the expansion of urban areas in addition to the demand for energy from rural areas and projects. It signed a contract with the British company in mid-2006 to supply the six areas with power.

Dr. Buhran told the Parliament that the Ministry’s revenues do not cover the cost of electricity production, because the revenue rate is less than 25 percent of the cost. “The government pays a subsidy to cover this deficit,” the Minister said. 

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