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Since 2004, the production of electricity decreased by 22.7%. The government's efforts to solve this crisis appeared very efficient. The use of power generators increased the production of electricity over the last two years, with a rise of 27.5% and 45.4% respectively in 2005 and 2006. However, energy became expensive due to high production costs. Indeed, 77.5% of the national production in 2006 is provided by the power generators, but still, the national demand is not yet satisfied.
The production of water decreased slightly by 0.8% in 2006 compared to the level of the year 2005. The departments of electricity and water production recorded enormous losses, some may be imputed necessarily to the technical aspects related to the transportation of energy or water to a long distance by old distribution infrastructures (pipes and cables that are to large extent very old), and sometimes by thefts. The introduction of cash powers decreased the losses of electricity that were estimated to be 33.4% of the total production in the years 1997 to 2000, 24.8% between 2001 and 2005 and 21.9% in 2006. Until now, only 65% of customers use the cash powers and often the big clients don't. In 1997, water losses represented 60.4% of the total production, the average of the years 1998 to 2003 reached 47.5%. The losses are in decrease and represent only 33.1%, 30.9% and 31.7% respectively in 2004, 2005 and 2006, thanks to the good commercial policies and management applied by ELECTROGAZ management. However, ELECTROGAZ management, supported by the government, tries to minimize the electricity and water losses. To support these efforts, two projects financed by the African Development Bank (ADB) and the World Bank (WB) to investigate old infrastructures (pipes and cables) to be replaced are in progress.
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