Mohamed Al-Hwej, the Minister of Economy and Trade in the Tripoli-based Libyan government, held a meeting yesterday with the head of the Libyan Industry Union (LIU), Ali Nuseer, and several owners of local companies and factories. The meeting was to discuss the impact of the government’s new higher electricity pricing and imposed peak time power cuts on producing companies and factories.
Increased prices will negatively affect production costs
Speaking exclusively to Libya Herald on the meeting’s agenda and the results, the head of the LIU, Ali Nuseer, said the increase in electricity prices approved by the government has a negative impact on the cost of production and the high prices of local products and their sufficient availability in the local market.
LIU demands Minister intervene
Nuseer pointed out that the owners of companies demanded the Minister of Economy and Trade intervene to support industrial companies and exclude factories producing medical oxygen. This is especially for those, he continued, that provide the needs of hospitals and health centres in various regions of this sensitive product on a continuous basis, because its interruption leads to bad results that are reflected in patients in Libyan health facilities.
Nuseer believes that fulfilling the demands of factory owners is necessary so that the local production of some important commodities will not be affected. This is in order for local market supplies to remain sufficient for the needs of consumers and prices do not rise. Nuseer said this is especially in light of the other high production costs.
The LIU head said there is a requirement for a plan from the government that achieves the availability of electricity for citizens without interruption and that does not harm anyone in light of the high demand for electricity during the summer peak.
For his part, the Minister of Economy stressed the importance of continuing production in local companies and factories to ensure stability of supply and prices in the local market. He directed the preparation of a memorandum to the Cabinet on the impact of the electricity pricing decision on industrial activities and the need to exclude several very important activities such as oxygen production plants.
He also directed the holding of a meeting with the General Electricity Company of Libya (GECOL) to study the status of the electrical network and find appropriate solutions to ensure the continued supply of energy to industrial companies and to maintain the stability of the electrical network and refer it to the Cabinet for approval.
The Economy Minister also noted the need to find alternatives to locally generated energy such as alternative energy or temporarily importing it from neighbouring countries. He also urged business leaders to cooperate in investing in various energies.
