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Experts Review Electricity Reforms

Cameroon, Morocco and South Africa have showcased achievements of reforms undertaken for more than a decade to make electricity more available and affordable to consumers. Their achievements were presented during a colloquium yesterday March 31 at the ongoing International Electricity Forum in Yaounde.

For the first speaker, Dibongue Kouo, reforms in the electricity sector in most of Africa that started in the 90s were prompted by reforms undertaken in developed countries and instructions from donors. At a time when African countries faced increasing electricity demand and short supply, the need was felt to reform the sector. The reforms, he explained, affected the whole electricity chain; generation, transmission, distribution and billing. Reforms also introduced privatisation, regulators and independent producers. “All these reforms aimed at reducing production costs and rates passed on to consumers,” he said, emphasising the need for Sub-Saharan Africa’s total electricity production estimated at 70 gigawatts to be increased to meet with an ever-growing demand.

Vincent Mainsah of AES Sonel explained how Cameroon passed the December 1998 Electricity Law that ushered in the privatisation of the National Electricity Corporation, SONEL, introduced private sector participation in the industry to help boost investment and offset the power generation shortfall experienced in 2005. Best of all, Vincent Mainsah said, reforms led to a successful public-private partnership between the government and AES Sonel through flexible management of the concession agreement.

Regarding various challenges faced in rural electrification in most Sub-Saharan African countries, the best practice came from the Kingdom of Morocco where reforms led to the setting up of a participatory rural electrification programme involving the national electricity authority, ONE, local councils and beneficiary communities. The success of the programme led to the increase in rural electrification rate from 18 per cent in 1995 to 96,8 per cent in 2010 with 33,150 villages and 1,9 million households electrified. In South Africa, it was also learnt, reforms led to the creation of the National Electricity Regulator, NER in 1995 to ensure electrification programme and unify tariffs of electricity generated and sold by the main electricity utility, Eskom, municipalities and the private sector power generation companies. Reforms also brought in privatisation, regulation, partnership and participation.

Experts at the colloquium of the International Electricity Forum yesterday also listened to the announcement by Cameroon’s Electricity Regulatory Board, ARSEL, of a new World Bank-sponsored programme to build the capacities of electricity consumer protection associations to better defend consumer interests. The forum enters its last day today with a plenary session to adopt recommendations.

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