CEB’s Red Alert

Editorial

A Question of Energy Security vs. Private Profit

The Central Electricity Board (CEB) issued a startling “Red Alert” on October 15, coinciding dramatically with the launch of the national energy sobriety campaign. This confluence of events was not merely ironic; it was a potent symbol of Mauritius’ precarious energy reality. While the immediate crisis — a potential nation-wide power cut — was averted by the commendable, rapid conservation efforts of the Mauritian public, the incident has exposed the deep structural vulnerabilities, political inertia, and critical contractual flaws that continue to hold the nation’s energy security hostage.

The prompt public response, which saved between 12 and 15 MW and allowed the CEB to stabilize the grid within hours, as confirmed by the CEB, is a powerful testament to civic responsibility. Mauritians proved their capacity for solidarity when faced with a common threat. Yet, the crisis itself — triggered by the simultaneous failure of two motors at an Independent Power Producer (IPP) and another at the CEB’s Fort George plant — underscores a reliance on aging, fossil fuel-dependent infrastructure that is fragile.

The subsequent appointment of Shamshir Mukoon as the new CEB Director General, with a mandate to stabilize production capacity and accelerate battery storage and solar projects, will hopefully offer a glimmer of hope for future resilience. But the core challenge is not merely technical; it is economic and political, rooted in a flawed model that prioritizes private profit over public security.

The Stranglehold of Contractual Dependency

The underlying crisis is not primarily about production shortfall, but about contractual inequity. The decision, dating back to the mid-1990s and encouraged by bodies like the World Bank and IMF, to shift the CEB’s role from sole producer to primary distributor, effectively handed over the keys to the national energy system to a handful of private Independent Power Producers (IPPs).

Today, IPPs generate approximately 60% of the nation’s electricity, while the CEB is forced to manage the remaining 40% — and only after the private power has been purchased. The contracts governing this relationship are, as analysts point out, heavily skewed in favour of the producers. These agreements mandate that the CEB purchase all IPP-generated electricity first, creating a risk-free, captive market for companies like Omnicane, Terragen, and Alteo.

This quasi-collective monopoly means that any fluctuation in production costs — from coal prices and inflation to currency variations — is automatically passed on to the CEB and ultimately to Mauritian consumers. The public sector is effectively subsidizing guaranteed high returns for private entities, while the CEB is left to maintain expensive, idle backup capacity. As former Labour Party MP Nita Deerpalsing highlighted on numerous occasions, these IPPs’ initial investment costs must have been paid off, but their highly profitable contracts remain, keeping competition locked out.

Political Inertia and the Need for a Roadmap

The recent energy alert instantly ignited a political controversy, illustrating the deep entanglement of energy security with partisan politics. The public spat between Opposition Leader Joe Lesjongard and Energy Minister Patrick Assirvaden, where both accuse the other of past failures and blame-shifting, is unproductive. While Minister Assirvaden correctly points out the long lead time (up to two and a half years) required to install a 40 MW machine, his predecessor’s alleged “zero megawatt” contribution to renewable energy is a damning indictment of past inaction.

However, the criticism levelled by energy analysts cuts deeper: the current Ministry of Energy lacks a clear, publicly articulated vision and a concrete roadmap. Their assertion that, nearly a year into the new administration, there is no solid plan beyond promises and reliance on foreign expertise is a serious charge. This lack of published initiatives and clear deadlines fuels public cynicism and leaves the nation guessing about its energy future. Energy analysts have also highlighted the contradiction of the CEB asking citizens to conserve while large private entities continue their unchecked consumption. While residential consumers diligently reduce their air conditioning use and switch off appliances, major commercial centres and private buildings — often heavily illuminated at night, including empty parking lots — continue to waste energy.

Energy analysts are right to demand that the responsibility for energy sobriety not fall disproportionately on the small consumer. The CEB’s direct correspondence with shopping centres to minimize the use of illuminated signs is a necessary, albeit late, step. Yet, a stronger, potentially mandatory, policy is needed to ensure that large commercial consumers bear their share of responsibility through mandated efficiency measures.

A Path Towards Energy Independence

The solution lies in breaking the monopolistic grip and fostering genuine competition and decentralized production. The forthcoming expiry of the IPP contracts represents a monumental, once-in-a-generation opportunity. The government must resist the temptation to silently renew these agreements.

Instead, Nita Deerpalsing’s call for reform must be heeded:
First, through Transparency and Accountability, where the government must publicly disclose the true profit margins of the IPPs and justify the price paid for their electricity, and immediately review taxpayer subsidies for highly profitable conglomerates.
Second, through Open Competition, ensuring the bidding process for future power production is opened to all to create a competitive benchmark that forces better prices and greater efficiency, thus ending the historical protectionism exemplified by the opposition to projects like CT Power.
Third, by working to Decentralize and Democratize Power, which requires lifting the arbitrary 5MW cap on private solar energy production — a relic that stifles progress — so that households, businesses, and commercial complexes are encouraged, and perhaps mandated, to install solar panels to meet their own energy needs, thereby reducing the strain on the national grid and empowering citizens as producers.

The recent energy agreements with India, which include the 17.5 MW Floating Solar PV Project and assistance with energy transition, are positive steps towards diversification. However, these steps must be complemented by internal structural reform.

The October 15 Red Alert was a siren call. The quick-thinking Mauritian public successfully pulled the nation back from the brink of a black-out. Now, it is up to the government to match that civic solidarity with political courage. The time for seeking excuses is over; the time for a transparent, competitive, and truly sovereign energy strategy is now. Mauritius’ economic competitiveness and national security depend on its ability to transition from being a captive market to a resilient, independent energy producer.

Mauritius Times ePaper Friday 17 October 2025