"Under the penalty of not being able to replenish the 'stocks' at the next import, scheduled for April 16, 2022 [...], as of March 1, 2022 we will be obliged to reduce the quantities of fuel supplied to Emae by 50 percent per day", reads a letter from ENCO's board of directors, dated 22 February.
The company justifies the decision taking into account that, up to that date, it has not received "any payments for the supplies of fuel to Emae's generator sets", nor has it received "scheduled proposals for the settlement of overdue debts" and ENCO "has been facing treasury difficulties".
The letter states that the decrease in supply may be suspended when Emae ensures "the payment conditions for these lots" and ENCO "manages to gather the necessary financial means to guarantee the purchase of fuel from third parties".
The Minister of Infrastructure and Natural Resources, Osvaldo Abreu explained that the debt problem with ENCO lasts "over several years", but has always been overcome.
"There have been regular payment failures by Emae to ENCO and from time to time - not only in this Government, in the previous Government and in others - ENCO plays its role as a commercial company demanding more payments to Emae, therefore, everything after also falls under the responsibility of the State", explained Osvaldo Abreu in statements to the country's Rádio Nacional.
According to the official, "when payment is not made, there is this situation of fuel reduction for energy production and then the State has to find a way to negotiate directly with Sonangol and the Angolan Government".
"We know what the cause is: it's that there is no money!", said the minister.
However, Osvaldo Abreu explained that for months now there have been negotiations with the World Bank, and the Government has been under "some pressure" to increase the price of fuel in the country, but "has remained firm" protecting the national market, having taking into account the vulnerability and also the capacity of the citizen, and not only, "to face the increase in prices, possibly resulting from the increase in fuel".
"If we don't update the price, either they will supply us with less fuel or we will necessarily have a very substantial cut in what we do in terms of trade in this same product", warned Osvaldo Abreu, adding, however, that it has been done " a huge effort at the level of the Council of Ministers to find the best way to deal with this situation".
Osvaldo Abreu did not "guarantee that there will be no change" in the price of fuel, admitting, however, that the population will understand this possible increase.
"Everyone will understand that São Tomé and Príncipe, not being a producer of oil, we cannot buy expensive to sell cheap", maintained the minister, announcing that "solar panels imported with international cooperation for the installation of 1.5 megawatts are in the country. of solar energy in Santo Amaro", in an effort that has been made "to change that paradigm" and to have more renewable energy in the production park in São Tomé and Príncipe.
