Electricity Regulators In Sub-Saharan Africa Rank 47% For Electricity Tariff Setting
Electricity Regulators In Sub-Saharan Africa Rank 47% For Electricity Tariff Setting
According to the African Development Bank (AfDB) and the World Bank’s December 2022 Global Electricity Regulatory Index (GERI), Sub-Saharan Africa is ranked 47% for electricity tariff setting.
The report also found that Sub-Saharan African electricity regulators ranked 69% for having a mature and well-documented tariff-setting methodology.
When it comes to having a tariff methodology that incorporates an automatic tariff adjustment, regional regulators only score a 45%. Similarly, the region is in the bottom half of the country for regulators that publish a timetable for substantial tariff reviews.
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The state of open access to information across regions was also analyzed in the report. The percentage of regulators in Sub-Saharan Africa that provide open access to information is 74%, while the percentage of regulators in the region who maintain active websites for electricity is 93%.
The region’s authorities rank 51% for the regularity with which their website is updated (at least once per week). In the meantime, SSA’s regulators rank 81% among those who oversee their industry’s electricity markets in terms of having communications officers in charge of their websites.
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Electricity Regulators In Sub-Saharan Africa Rank 47% For Electricity Tariff Setting
Transparency of decisions: Sub-Saharan Africa ranks 72% in the transparency of electricity regulators’ decisions. The report also examined if all decisions taken by regulatory agencies are accessible to the general public, and in this regard, the SSA region ranked 76%.
The region’s regulators ranked 88% for providing explanations for their major decisions. Also, the region’s regulators ranked 67% for having laws that promote the voluntary or mandatory publication of regulatory documents and decisions.
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Regulators’ accountability: The report ranked electricity regulators in the SSA region 68% for accountability. Also, the region’s regulators ranked 95% for having legal obligations to produce annual reports on their activities.
The regulators in the region ranked 98% for having a formal mechanism that allows regulated utilities or other parties to challenge or contest regulatory decisions.
However, the regulators in the region ranked 40% for having either the presidency, power sector minister or parliament to report directly to.
Financial independence: The report ranked regulators in the Sub-Saharan Africa region at 61% for financial independence of electricity regulators.
- It further stated that in the SSA region, regulators got 50% of their funding from fees levied on utilities, 23% from penalty fees, and 27% from the government budget.
- The region ranks 98% for having regulators’ financial budgets stated in established legislation.
- However, the report ranked regulators in the region 48% for salary level when compared to salaries of utility workers within the SSA region.
Decision-making independence: The report ranks electricity regulators in the SSA region at 71% for independence in decision-making and 62% for approving electricity tariffs.
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The regulators were ranked 43% for issuing and amending licenses and 62% for resolving disputes between companies and their customers. Electricity regulators in the region also rank 86% for their capacity to make decisions that are legally binding or intended as advisory recommendations.
For the record: The GERI report says that electricity regulators in the sub-Saharan African region regulate the following sectors at the following rates:
- Electricity at 93%
- Natural gas at 34%
- Petroleum at 34%
- Telecommunication at 12%
- Transport at 5%
- Others (post, coal) at 5%
Meanwhile, none of the regulators in the region exercises any regulatory powers over water, sanitation, and heating.
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