In 2003, Mauritius consumed the highest amount of energy in its history. According to the Central Statistics Office (CSO), energy consumption that year represented a 6% increase over 2002. To meet this energy demand, imports went up by 3% while local production accelerated by 5%. The import bill reached just under Rs7 billion in 2003, a 10% hike compared to the previous year.

2004 was the year of record oil prices, with the barrel costing over US$50. While Iraq remains unstable and China continues its relentless economic expansion, oil prices will not decrease significantly. As such, our bill in 2005 will retain its corpulent character.

Our energy requirements will continue to be supplied predominantly from abroad in the short and medium term. The contribution made by the indigenous sector is close to capacity at 23%. In the future, the centralisation of the sugar sector and improved technology is expected to make a bigger input.

The main consumers of energy in the country are the transport and manufacturing areas, at 48% and 32% respectively. Private households at 13% and commerce at 6% complete the picture of the main end users according to the CSO. The 1% allocated to agriculture is insignificant in comparison. Excluding the latter, all other sectors intensified their consumption in 2003, compared to 2002. The largest increase came from commerce, which required 14% more energy. Manufacturing and households were up 4%, while transport was 7% more ravenous.

We can expect the transport sector to continue its upward trend in energy consumption. As reported in this newspaper last week, 2004 saw 35% more cars sold compared to 2003. The booming reconditioned-car business, offering affordable prices and quality to buyers, is a major factor behind the increasing energy needs of the transport sector. More cars have also meant more diesel and gasoline to fill the tanks, leaving the aviation industry with a third of the market share. Consumption of diesel oil shot up by 5% to 42% and gasoline use increased by 2% to 25%. 2003 also witnessed the rise of liquefied petroleum gas (LPG). Though it is a fledgling product, with a 1% consumer preference, its popularity increased by 85%.

The modernisation of the country has contributed heavily to the rising consumption of energy. The economic boom of the nineties also saw a larger section of the population acquiring electrical consumer goods. Industrialisation added its fair share to the energy needs of the country, with the large manufacturing sector being a heavy user. But there is a discrepancy between the different groups who foot the bill, especially when it comes to electricity.

In 2003, the Central Electricity Board (CEB) catered for 55% of the demand for electricity while the Independent Power Producers of the sugar industry weighed in with 45%. In total, this was a 6% rise compared to 2002, according to the CSO. The manufacturing sector was the most demanding of all sectors, followed by households and commerce. From 1994, domestic electricity consumption rose from 300.8 Gigawatt hour (GWh) to 564.6 GWh while industrial use leapt from 296.9 GWh to 552 GWh in 2003. In commerce, an additional 270 GWh was required for the same period.

<B>The fat cats pay less</B>

However, when the escalation of prices from 1994 to 2003 is compared, it is clear that ordinary people have borne the brunt of Gulf wars, world recession, government policies or any other factors that have affected oil prices. While the price of domestic electricity rose by almost Rs1 per Kilowatt hour (KWh), industry bosses paid only 26 cents more. Commercial users were done no favours either as they saw their prices take a hike of Rs1.40 per KWh. Out of this picture, it is fascinating to see how our politicians can fashion themselves as the champions of the poor when they need to renew their social contract at election time or rather cynically when they are in the opposition.

The hypocrisy of our parliamentary representatives aside, Mauritius still represents a model of electrification in Africa. While most of the country is covered by electricity, the International Energy Agency (IEA), an intergovernmental organisation, says that only 34% of Africans can claim the same privilege. In Asia, the figure is just above 67%. Nearly 2.4 billion people around the world rely on biomass (wood, charcoal, biogas, liquid fuels etc) for cooking and heating. In Mauritius, approximately 3.5% of the population uses these sources of energy for cooking. (It must be noted that 1.1% of Mauritian households did not have electricity in 2000 according to the CSO.) Africa represents a contradiction. It is home to 13% of the world?s population, produces 7% of our commercial energy, of which it consumes only 3%, estimates the World Energy Council (WEC), a UN-accredited non-governmental organisation. Even South Africa, which has a nuclear power plant, is unable to offer electricity to 34% of its population according to the IEA.

<B>Protected oil reserves</B>

Electricity will become an important issue over the next few decades. It is the root of a modern economy based on communications and services and risks further enlarging the global divide between the haves and the have-nots. The energy industry is so powerful that it can lobby governments to change their policies. Two gulf wars have been fought to make sure that oil reserves are protected. Dictatorships and monarchies are sustained on the back of ?black gold?.

Meanwhile, Mauritius continues to increase its use of energy. This trend is set to continue, as modern comforts like microwave cookers, mobile phones, PCs and air conditioners are introduced in the home. Coupled with more car owners and a burgeoning IT sector our energy consumption will make our import bill heavier. We can also expect that the costs will be transferred to the population. In 2005, an election year, we will certainly hear more mumbo jumbo from hypocritical politicians who will make pledges about the democratisation of the economy.

<B>Diren valayden

Outlook Correspondent in Dublin</B>