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Saturday, August 1, 2009

SENELEC and its lack of innovation

The Senegalese Energy company (SENELEC) has decided that starting from this July, it will increases its rate up to 8%. This decision has raised many complaints from the Senegalese population. And to add injury to insult, the SENELEC has been cutting the electricity in all the country everyday starting from July. They would go so far as to cut it twice in one day. As far as I could remember the SENELEC has been using this strategy to save energy. According to them, they do not have enough energy to provide for the entire population. And since the demand for electricity doubles during the summer, they are forced to cut back in order to save.
This situation is unbearable because the summer is very hot in Senegal. People hope to get some rest from the heat by using electric fan, air conditioning, or drinking cold drinks. However due to this electricity cuts, they are unable to ease their pains. Moreover, due to the electric cuts, household appliances such as the refrigerator get damaged.
I often think that if there was another energy company in this country, the SENELEC would not treat us the way they do. In fact, based on the example of the phone company SONATEL, I am positive that they need a bit of competition to make things right by us. The SONATEL being a state company used to have the monopole of the communication sector. And with the growing popularity of the cell phones, they had high rates. At the difference with other countries, in Senegal you do not need a contract with the phone company to use a cell phone. You only need to get a cell phone, and to buy a SIM card at the SONATEL along with a recharge card every time you need to use it. The phone company would also sell phones. The price of the phones and SIM Card were extravagant. Back in those days, having a cell phone was like a luxury. However, with its privatization and the arrival of competitors such as TIGO or EXPRESSO, the SONATEL was obliged to revise its prices. Now having a SIM card is very affordable. Moreover, the company often offers promotion during which you can receive a 100% bonus on your charge card. Hence, I think that the country needs to open its energy market and let other companies give it a try. Only then, would the population be satisfied with the energy in this country. Unfortunately, the State, which is still a big important shareholder in the SENELEC does not want to let the monopole slide off his hands.

Furthermore, I do not understand why the SENELEC has not found new ways of producing energy. There are so many new things they could try to increase their production of energy starting with the use of solar power. They say that they experimenting it. However, I am sure it does not take too much time to figure out how to use solar power to our advantage. It may be expensive, but isn't it a worthy investment?
In truth, I am not certain that they are trying their hardest to find innovative ways to produce more energy. I look at the example of Mimran, who is the president of the Senegalese Sugar Company (Compagnie Sucriere Senegalaise). This Swiss entrepeneur decided to grow sugar cane in the north of Senegal (Richard Toll), in a field that was so dry that people laughed at his project, saying that it would never work. But Mimran, built his company and was successful. Now, he is the main producer of sugar in Senegal. He employs between 3000 to 5000 people depending on the season. But the reason why I am interested in Mimran case is that he has succeeded in producing electricity through his company. And his production is big enough to be used by the entire town in which his company and sugar cane fields are located. He even sells it to the SENELEC for use. What is it that Mimran as a sole human being did that the SENELEC, a big company cannot do?

This situation is becoming unbearable. People are frustrated. Recently in some neighborhood, they gather up to protest against the SENELEC wrongdoing. They even went so far as to say that they would not pay the electric bills, and would attack any agents that show up in the neighborhood trying to cut the electricity. With this economic crisis, prices of daily goods rising, having higher electricity bills and less consumption is not what the standard Senegalese need. I am afraid that if we do not find a solution very soon, the situation will worsen. Let us just hope that summer goes by quickly and that is does not get any hotter than this.

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