The energy sector will face three challenges in 2017, one of which is improving services following the lifting of electricity subsidies; consumers will pay for their electricity consumption fully, therefore they should receive better services, chairperson of the Mediterranean Energy Regulators Hafez Salmawy said at the Akhbar Al Youm economic conference.
The second challenge is transparency. Salmawy noted that it is important to announce the actual cost of production, operation, and maintenance as well as companies’ budgets, wages for workers, performance rates, and indexes, in addition to disclosing the administrative structure.
The third challenge is developing governance to reduce costs through financial restructuring, expansion, and investment. The implementation of projects cannot continue with support from sovereign authorities in the state, according to Salmawy.
“A governance process of electricity companies must take place, while finding ways to provide financing from the capital market through issuing bonds, or even through the credit structure, without obtaining sovereign guarantees,” he added.
