Uganda Tops AfDB’s Electrical energy Regulatory Index for Fourth Consecutive Yr
For the fourth consecutive yr, Uganda’s electrical energy sector is Africa’s finest regulated throughout various key metrics, in response to the African Improvement Financial institution’s 2021 Electrical energy Regulatory Index.
Different robust performers embrace East African neighbours, Kenya and Tanzania, in addition to Namibia and Egypt.
The 2021 Electrical energy Regulatory Index, an annual report, lined 43 international locations, up from 36 within the earlier version, and assessed their affect on the efficiency of their electrical energy sectors.
The index lined three international locations within the North Africa area; 14 in West Africa; 6 in Central Africa; 7 in East Africa; and 13 within the Southern Africa area.
“The unprecedented participation of so many international locations reveals the dedication to strengthen the international locations’ regulatory setting with a view to bettering the efficiency of the respective electrical energy sectors,” stated Dr. Kevin Kariuki, the AfDB’s vice chairman for Energy, Power, Local weather and Inexperienced Development.
Among the many 2021 report’s key highlights are that regulatory independence is one sub-indicator the place African international locations have room to enhance: in 93 p.c of sampled international locations, governments, and stakeholders train affect over regulatory authorities. When it comes to regulatory substance, taking part international locations scored lowest on adequacy of their tariff setting and frameworks, in addition to licensing frameworks when put next with finest follow.
In accordance with the report, the typical efficiency on financial regulation has continued to say no since 2018. A 3rd of nations surveyed indicated they lack methodologies to find out tariffs; one other 40 p.c depend on tariff methodologies that don’t embrace key attributes equivalent to automated tariff adjustment and tariff indexation mechanisms and schedule for main tariff evaluations.
Wale Shonibare, AfDB director for Power Monetary Options, Coverage and Regulation, recommended the top-performing nation.
“Uganda topping the rankings consecutively for 4 years comes as no shock to many, because the regulator spends vital time on session and evaluation, together with regulatory affect assessments of key interventions and follow-through to make sure full implementation,” he stated.
Outdoors stakeholders additionally considered the report’s outcomes positively.
Eng Abel Didier Tella, Director Common of the Affiliation of Energy Utilities of Africa, stated, “It’s attention-grabbing that the utilities in a lot of the top-performing international locations within the Electrical energy Regulatory Index are listed on their nationwide inventory exchanges, which requires compliance with transparency in info sharing and good governance follow.”
Since its launch in 2018, the Electrical energy Regulatory Index has highlighted elements of electrical energy regulation that want reform, recognized acceptable areas for intervention, and inspired stakeholders to be proactive in addressing challenges. Since then, the index has been extensively adopted by regulators and different stakeholders throughout the continent as a benchmark for the regulatory setting in addition to for ongoing reforms.