Story by: Mabel Adorkor Annang
To enhance operations in the power sector in Africa, utility regulators have identified a few conditions: power system flexibility, leveraging on regional electricity trade, accessing global climate financing, regulatory independence, and integrating least-cost, long-term financing.
To enhance national dialogue on regulatory issues, specifically in the areas of electricity, water, and natural gas in Africa, especially in Ghana, the Public Utilities Regulatory Commission (PURC) organised its second regulatory conversation.
The regulators say energy issues are country-specific and should be driven by country-specific policies and interventions.
They identified that tariffs must engender efficiency and innovation; and not be too restrictive to the point of discouraging the adoption of new business models and technologies.
The players advocated power sector reforms as African countries worked towards transitioning to net-zero carbon emissions.
The Director of Energy Financial Solutions, Policy and Regulations with the African Development Bank Group, Mr. Wale Shonibare, said regulators’ issues surrounding regulatory independence should be tackled.
“Most of Africa’s public utilities are in final distress. The struggle to cover their operating cost and cannot finance the required expenditure to maintain their operations thus forcing them to rely on public subsidies,” Mr. Shonibare added.
During a panel discussion, the Executive Secretary of the PURC, Dr Ishmeal Ackah, said regulatory independence is needed to help in decision making.
“You don’t operate within a vacuum, you don’t operate as just a regulator alone but you should be independent to have some autonomy in terms of your processes and your decisions but in all these things because your decision affects other people, affect the sector and can lead to so many other things, it is important to engage,” Dr Ishmael Ackah explained.
Dr. Ishmael Ackah said using green and affordable technologies in energy generation as the World transitions to net zero carbon emission will help reduce power tariffs significantly.
Dr. Ackah said recent Economic turbulence has impacted on tariffs hence the need for regulators to find ways to mitigate the impact on the consumer and the Utilities.
As the Panelists emphasised the adoption of green energy on the continent, the CEO of the Electricity Regulatory Authority in Uganda, Ziria Waako, said Energy Transition must be country and policy specific.
“Most of the parts of the continent maybe, we are transitioning from darkness because the pollutant energy is not there. I agree that we should look at our resources and make it country specific,” Madam Waako intimated.
A member of the South African Energy Regulator, Nhlanla Gumede, spoke about regional interconnectivity to help the continent develop.
Mr. Gumede said, “South Africa can only be winners in the Energy transition plan with the help of our neighbours. Regional integration, the interconnectivity on the continent we really need to work on that.”
The conversation brought together Chief Executives of the electricity regulatory institutions of Kenya, Namibia, South Africa, Uganda, Mozambique, and some regulatory experts from the University of Cape Town, South Africa, to discuss contemporary utility regulatory matters in the era of energy transition.
The discussion was on the theme: “The Regulator in the Era of economic Turbulence and the Energy Transition: Lessons from the Past and a Guide for the Future.”