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The 2019 supplementary budget highlights government’s assessment of the energy sector challenges, and has proposed measures for addressing those challenges. ACEP sees this as a rehashing of the same issues of which government has been aware of since 2017, as evidenced by various government statements.

The difference, however, is that this time, the energy sector bills have crystalized, sending panic waves through government’s finances. The most significant challenges facing the energy sector are the excess procurement of power generation systems which the country does not need, and gas; both on Take-or-Pay bases.

The effect of this is that government is saddled with huge debt burdens. The measures outlined by the government in the supplementary budget to deal with these challenges need to be examined to determine whether they are capable of addressing the challenges and will not end up creating further problems in the future.

In line with ACEP’s commitment to supporting the process of finding sustainable solutions to the energy sector  challenges, ACEP presents independent analysis of the key issues in the supplementary budget.

Find attached the full report of ACEP's review.