African Development Bank Brings Together African Regulators and Utilities On the 2022 Electricity Regulatory Index

14 June 2022
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African Development Bank (Abidjan)
press release

The African Development Bank Group recently held a two-day workshop for electricity sector regulators and utilities on its annual flagship report, the Electricity Regulatory Index for Africa((ERI).

The workshop was held from 25th to 26th May 2022 in Nairobi, as a hybrid event. It saw the first in-person meetings on the report since the Covid-19 pandemic and brought together over 70 participants. The workshop was organized as part of activities for the development of a fifth edition of the report.

Giving opening remarks on behalf of the African Development Bank's Director-General for East Africa, Callixte Kambanda, Manager for the Energy Policy, Regulation and Statistics Division, re-affirmed the group's commitment to using the index as a tool to address regulatory gaps with the aim of enhancing power sector regulation in Africa.

He said the recent initiative from the Bank is supporting regulators through digitization programs, "to strengthen technical regulation, economic regulations, governance and information liberalization through the use of digital tools, models and software."

Rhoda Mshana, Chief Power Sector Regulations Specialist at the African Development Bank, noted that Uganda has been the top performing country in the ERI since the inception in 2018. She said Uganda's Electricity Regulatory Authority continues to outperform in the ERI as it continues to grow and improve their regulatory actions. The country prioritizes learning and development with a focus on activities that will improve sector performance and attract investments, she said.

The workshop which brought together several regulators and utilities from across the continent was also a platform for countries to share experiences and knowledge. Four countries; Kenya, Senegal, Eswatini and Togo presented the regulatory developments in their countries, showcasing how they have implemented ERI recommendations since participating in the ERI. The countries used the ERI as a diagnostic tool to assist them to develop a roadmap of activities and actions to strengthen their regulatory capacities as well as improve the sector overall.

Marc Kouakani from Togo's electricity regulator, Autorité de Réglementation du secteur de l'Electricité (ARSE), said the regulator was benefitting from technical assistance from the National Association of Regulatory Utility Commissioners (NARUC) facilitated by the Bank to strengthen its economic regulation activities based on findings from the ERI.

The ERI, a flagship of the African Development Bank, is a composite index that measures the level of development of electricity sector regulatory frameworks in African countries against international standards and best practice. The report is released annually after a series of consultations to engage participating regulators and utilities as part of its methodology.

Since its inception in 2018, the African Development Bank has produced four editions, with the 2022 report being the fifth edition. The body has 43 countries as members as of 2021 with plans to increase the number to 45 this year. The ERI only covers African countries with independent power regulators.

Other participants and beneficiaries of ERI follow-up support expressed their appreciation.

"Ghana is benefitting from the support of the Bank through KOAFEC and USAID/ Power Africa funding to develop a Database Management System (DBMS) and capacity building and advocacy with the civil society stakeholders within the ongoing tariff review framework," said Mr. Eric Kyem from the Public Utility Regulatory Commission.

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