The Consumer Council Of Zimbabwe (CCZ) World Consumer Rights Day 2006

1. The Consumer Council Of Zimbabwe (CCZ)World Consumer Rights Day 2006 Take action on energy –sustainable access for all Harare Club, 30 March 2006 Consumer Concerns On Sustainable Energy Access And The Anticipated SADC 2007 Energy Crisis. Eng. Martin Manuhwa (Deputy President – The Zimbabwe Institution of Engineers) (Managing Director: Industrial Energy Solutions IES (P/L)) e-mail: unitel@mweb.co.zw, mmanuhwa1@yahoo.com

2. OUTLINE OF PRESENTATION • INTRODUCTION • CONSUMER CONCERN ON DEFICIT • CONSUMER REPRESENTATION • SUSTAINABLE ENERGY DEV • OPTIONS FOR SUPPLY • WAY FORWARD • CONCLUSION

3. INTRODUCTION:Energy Access to energy 1 billion people in industrialized countries consume 60% of total energy supply; 5 billion people in developing countries consume 40 % Energy “business” Turnover of about US$ 2.4 trillion in 2000 The productivity of 1/3 of world’s people is compromised by lack of access to commercial energy. Another third suffers economic hardship due to unreliable energy supplies Energy necessary to achieving sustainable development

4. Structural reform of the energy sector • Privatization, increasing competition, unbundling of monopolies, deregulation Developed countries: poor performance of state owned energy companies; subsidy burdens; over investment Developing countries: + debt crisis; capital shortages Externalization of services; new services International Trade in Services

5. What energy services are? • They are required at each step of the energy process from the location of the potential energy source to its distribution to the final consumer Value added in the energy chain

6. “Traditional Services” exploration extraction drilling Infrastructure pipeline construction “Emerging services” gas & electricity transmission and distribution operation of power pools energy trading/ brokering energy management Energy services in the market Increasingly technology-intensive Emerging from structural reform

7. CONSUMER CONCERNS • The energy sector is a chain of interrelated activities but the classification is fragmented and non-exhaustive • Lack of Access • Prohibitive Connection Fees • Poor Customer Services

8. CONSUMER CONCERNS • Poor System Reinforcement • Lack of Capacity • Blackouts • Vandalism • Electricity Pricing

9. CONSUMER CONCERNS • Coverage and continuity of service • Affordability • Sustainability • Consumer Representation

10. CONSUMER CONCERNS • Efficiency • Economic burden & Gender Sensitivity • Environment • Health

12. Developing country challenge Achieving a broader, sustainable, and more reliable and efficient access to energy Obtaining a greater share of the energy “business”

13. Energy producers developing countries - few commitments in their GATS schedules import traditional energy services flexibility to liberalize and seek reciprocal concessions Developing countries limited experience with reform in the energy sector effective domestic energy policies promoted by a better understanding of market reform Implications for developing countries

14. SUSTAINABLE ENERGY DEVELOPMENT • Improved access • Security of supply • Environment

15. Energy Divers

16. Conclusions Access to energy is crucial for development Rapid developments in the sector: need to better understand the implications • Policy measures • Energy Management • Renewables • Consumer Representation Freer trade in energy services may facilitate access to energy Energy services are the value added in the energy chain: developing countries wish to increase their participation