By Francis Ntow
Accra, July 31, GNA – Regulators, operators and government representatives have called for blended financing modules to attract the needed funding to address challenges in West Africa’s electricity sector.
They also recommended policy alignment and coordination, strengthening of regional institutions, increased investment in infrastructure, gradual market liberalisation, capacity building and enhanced public awareness and engagement towards the provision of reliable and cheaper electricity for households, and support business growth in the region.
The recommendations were made at the just ended ninth Econimic Community of West African States (ECOWAS) Regional Electricity Regulatory Authority (ERERA) forum held in Accra, Ghana.
“By implementing these recommendations, ECOWAS member states can enhance electricity trade security, promote economic growth, and improve access to reliable and affordable electricity across the region,” said Mr Kocou Laurent Rodrigue Tossou, Chairman, ERERA.
He encouraged the development of financial instruments and incentives to attract investment in the electricity sector, including exploring opportunities for blended finance by leveraging both public and private sector funding.
Mr Tossou also urged ECOWAS member states to align their national electricity policies with regional frameworks through the adoption of common regulatory standards and practices to facilitate cross-border electricity trade.
He said it was important to to enhance the capacity of regional System Market Operator of the Regional Electricity Market and ERERA to oversee and coordinate electricity trade activities, enforce compliance and resolve disputes.
The ERERA Chairman was confident that the implementation of a newly developed regulatory framework for the region would establish a more integrated market to enhance access and affordable electricity for all consumers.
Speaking with the media, Mr Emmanuel Mannah, Director General, Sierra Leone Electricity and Water Regulation Commission, noted that tariffs in the region were high, “becuase the numbers have not been too scientific”.
“What ERERA is doing is to make sure that they give national regulators the methodology that will work, and by so doing, it will become more scientific and analytical, do away with guess work, and the numbers can come down,” he said.
He noted that tariffs were often calculated based on the cost incurred by producers of electricity, and once those cost were efficient through accurate data computation, there would be reduction.
Dr Ishmael Ackah, Executive Secretary, Public Utilities Regulatory Commission (PURC), underscored the importance of introducing private capital into the sector since governments could not solve challenges in the sector all themselves.
He noted that the role of regulators was crucial in addressing concerns of producers and consumers as well as externalities, including environmental factors to assure investors of good returns.
He, however, said, “what regulators should not do is to micro manage, but set the guidelines and rules, which the operators would operate within, and that’s what ERERA wants to do.”
GNA