52
M. Irowarisima
2.3.2 Poor Regulatory Reforms
To close the electricity gap in SSA, especially in SADC and ECOWAS
requires sound reforms that target energy utilities and regulatory frameworks to improve regional cooperation that leads to operational efficiency. It is true that most countries across the region that have the
potential to be energy dependent divert billions of dollars of taxpayers’
money on utility losses and petroleum subsidies, which end up not
achieving the power sector’s productivity.
53 On the premise that most
utilities cannot recover their costs without these subsidies. Regulatory
reforms should target liberalizing the entire sector while building a strong
regulatory institution to supervise the operations of energy utilities, especially when it comes to setting the price for each unit of electricity
consumed by the consumer.
Energy power system development in the world all over is perceived
as high capital projects and is being sustained without the assistance of
energy subsidies to augment the losses of energy utilities. Why is SSA’s
case different? When one follows the trend in the state of energy play in
these regions, both household and commercial users of energy pay more
for running diesel generating sets to power their appliance to provide
services than connecting to the epileptic national grids. If businesses are
willing to pay more to self-generate what makes anyone think that if the
price of energy is set commensurate to where the investor can recoup his
investments over a period, people cannot pay.
In all of these, one can only conclude to say that there is a high level
of corruption between these multinational energy utilities and the regulatory institutions and the political class regarding how energy regulatory
reforms are being managed. Regulatory reforms should be crafted in
such a manner that the system will work on its own without interference and interventions from any quarter and allow the forces of demand
and supply to regulate the industry. All SSA need is availability, and the
rest will take care of itself, just as it has in other climes. People in the
government of these regions benefit from subsidy schemes. What they
53 IEA-International Energy Agency (n. 24).
M. Irowarisima
2.3.2 Poor Regulatory Reforms
To close the electricity gap in SSA, especially in SADC and ECOWAS
requires sound reforms that target energy utilities and regulatory frameworks to improve regional cooperation that leads to operational efficiency. It is true that most countries across the region that have the
potential to be energy dependent divert billions of dollars of taxpayers’
money on utility losses and petroleum subsidies, which end up not
achieving the power sector’s productivity.
53 On the premise that most
utilities cannot recover their costs without these subsidies. Regulatory
reforms should target liberalizing the entire sector while building a strong
regulatory institution to supervise the operations of energy utilities, especially when it comes to setting the price for each unit of electricity
consumed by the consumer.
Energy power system development in the world all over is perceived
as high capital projects and is being sustained without the assistance of
energy subsidies to augment the losses of energy utilities. Why is SSA’s
case different? When one follows the trend in the state of energy play in
these regions, both household and commercial users of energy pay more
for running diesel generating sets to power their appliance to provide
services than connecting to the epileptic national grids. If businesses are
willing to pay more to self-generate what makes anyone think that if the
price of energy is set commensurate to where the investor can recoup his
investments over a period, people cannot pay.
In all of these, one can only conclude to say that there is a high level
of corruption between these multinational energy utilities and the regulatory institutions and the political class regarding how energy regulatory
reforms are being managed. Regulatory reforms should be crafted in
such a manner that the system will work on its own without interference and interventions from any quarter and allow the forces of demand
and supply to regulate the industry. All SSA need is availability, and the
rest will take care of itself, just as it has in other climes. People in the
government of these regions benefit from subsidy schemes. What they
53 IEA-International Energy Agency (n. 24).