Table of Contents
Electricity Pricing : The Dawn of Cost-reflective Prices and Associated Challenges in the Economy
Electricity cost is critical to developing an electricity industry and has been a contentious issue in Sub-Saharan Africa. Electricity price has not reflected the true cost of generation and supply, hampering investment in electricity infrastructure, resulting in frequent power outages, and constraining economic growth of Sub-Saharan economies. The situation is changing, with countries such as South Africa, Tanzania, Kenya, Ghana, and Nigeria implementing cost-reflective tariffs to sustain their electricity infrastructure and attract private investment. Implementing a cost-based tariff structure will have a lasting impact on public utilities, private power producers, and domestic, industrial, and mining consumers in the target economies.
Key Questions this Study will Answer
- What is the status of the electricity industry and its structure in the target countries?
- What are the regulatory mechanisms in place for electricity pricing and tariff determination?
- How have electricity tariffs developed in the past in the target countries?
- What would be the high level impact of cost-reflective tariffs on key stakeholders such as utilities, IPPs, mines, and industry in the target economies?
- What are the drivers and restraints for achieving complete cost reflectivity of tariffs in the target countries?
- What trends would the electricity tariffs follow during the forecast period in the target countries?
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