African Power Regulators Urged to Boost Independence, Accountability
African energy regulators are making strides in implementing reforms but must do more to strengthen independence and transparency, according to the African Development Bank’s latest Electricity Regulatory Index (ERI).
The 2024 report highlights five key areas where regulatory systems must improve: ensuring autonomy from political and commercial interference, enforcing stronger accountability frameworks, increasing transparency in operations, widening stakeholder engagement, and adopting cost-reflective tariff models to support sustainable investment.
“African countries are moving beyond legislation and focusing on execution,” said Wale Shonibare, the Bank’s Director for Energy Financial Solutions, Policy and Regulation. “Regulators are evolving into strategic institutions with growing influence. But gaps remain in areas such as financial independence, enforcement power, and institutional resilience.”
While many regulators across the continent have begun implementing significant reforms, the report found that challenges continue to limit their full effectiveness.
Inadequate funding, overlapping mandates, and limited autonomy from government ministries hinder the ability of regulators to operate with the authority needed to shape reliable energy sectors.
The report also notes that predictable regulatory environments are crucial to attracting private sector investment in energy infrastructure.
Developing cost-reflective tariff methodologies remains a pressing issue in many countries, with regulators often under pressure to keep electricity prices artificially low, leading to financial strain on utilities.
Since its launch in 2018, the ERI has served as a benchmarking and reform-planning tool for governments, regulators, and development partners.
The 2024 edition incorporates feedback from power utilities, national regulators, and regional energy organisations, offering a comprehensive overview of the continent’s regulatory landscape.
By identifying implementation gaps and tracking country-level progress, the index aims to guide reforms that can unlock investment and drive energy access.
The Bank has urged policymakers to prioritise regulatory independence and long-term planning to help accelerate universal electricity access and support economic growth.
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