The Seychelles, through the Seychelles Energy Commission and the PUC both run by Philip Morin a 1980’s engineer, who we supported in the past because he replaced a high price French Chairman, has kicked the bucket now with his ridiculous program on Photo-Voltic alternative energy program he is enforcing with the private sector.
Commercial Rates v/s Residential Rates
The legacy of inefficiency and lack of productivity is being enforced by Mr. Morin to suit his political puppeteers at PL. We expected professionalism from you Mr. Morin. Right now you are looking no better than your crony brother Charlie the golfing putz that plays 9 hole.
Until today, after successive IMF programs, a wind with national bankruptcy, the PUC still charges commercial users a higher rate than residential users. This means the productive sector of the country, that earns money, is penalized and hence, the cost of earning money is heightened to the disadvantage of the economic producers on a national level of electricity and water. The effect is a classic Communist result of subsidizing water and electricity to make it cheap for residents the consumer side of an economy. If service is cheaper for residents, then abuse will continue to reign and non productive edge dulled at a national level.
Mr. Morin, PUC, Government of Seychelles- PL (Communists all of them), have cleverly fooled the IMF with a cunning argument, that only Jean Paul Adam could come up with: “Seychelles is a micro economy, and a micro state, and we must gradually phase in the electricity tariff increases on residents ( the non productive sector) and keep the commercial sector ( productive sector) subsidizing these tariffs, over Five (5) years, (until France Albert Rene and James Michel die)- add lip.”
The IMF God only knows why, agreed with this ferry tail position.
The effect of this is investing in Seychelles over the next Five (5) years for electricity and water billing, will be the most expensive it has ever been.
Behind this smoke screen at ministers whose electricity bills goes unpaid, ministries that do not pay their bills, which the commercial sector pays by subsidy to PUC. What a nut house we live in….in Seychelles.
What IMF failed to recall, is that Seychelles is a Middle Income Country. It can today, afford to pay for its electricity and water use, consumption on a level playing field. If residents can afford DSTV, Intelvision, Mobile phones, I pads, and be the No. 3 consumer of Beer in the World after Denmark No. 1 and Republic of Palau No. 2, they can pay their electricity bills and water bills at a non-subsidized rate.
By subsidizing, electricity bills and water bills, what PL is doing is keeping the countries labor market inefficient, and worse, making the commercial sector non competitive.
The effect of this is lower production and lower revenue, and lower Gross Domestic Product (GDP) . This is why in part, growth rates burp at 1% , 2% per annum. It needs to be corrected urgently, as opposed to gradually for the people of the country to have relief from a bad prescription, that only hurts them in the long run. Lower productivity means lower wages or stagnant wages. It means less valuable opportunities for those who seek them. This results in economic flight of human capital, a classic reoccurring Communist problem.
People of Seychelles, in our country we must not tolerate non-sense as Public Policy, we have been doing this for 35 years under PL.
Sesel Pou Seselwa!
May God Bless All Freedom Loving Seychellois!