Regulators and energy experts from across Africa recently convened in Nairobi for a key workshop aimed at validating the 2024 Electricity Regulatory Index (ERI) Report.
The event, organized by the Energy and Petroleum Regulatory Authority (EPRA) in collaboration with the African Development Bank (AfDB), underscores the continent’s commitment to enhancing electricity sector regulation.
Launched by AfDB in 2018, the ERI serves as a diagnostic tool that evaluates regulatory frameworks in African countries, identifying areas for improvement and reform.
The index assesses participating nations based on three core pillars: Regulatory Governance, Regulatory Substance, and Regulatory Outcomes. These metrics help track legal and institutional structures, implementation of policies, and the impact of regulations on utilities and consumers. By benchmarking regulatory practices, the ERI aims to enhance efficiency and investment in Africa’s electricity sector.
Kenya’s Commitment to Regulatory Excellence
Speaking at the workshop, EPRA Director-General Daniel Kiptoo highlighted Kenya’s strides in regulatory reforms, emphasizing the country’s ongoing commitment to efficiency, sustainability, and accessibility in the energy sector.
“EPRA is committed to ensuring that Kenya’s energy sector remains efficient, sustainable, and accessible to all. Our participation in the Electricity Regulatory Index over the past five cycles has driven significant regulatory improvements. Through the Index, we have enacted key reforms, including the Energy Act 2019, strengthened tariff and energy efficiency frameworks, streamlined licensing, enhanced transparency, and improved consumer protection,” Mr Kiptoo stated.
Global Recognition and Future Prospects
Dr. Kennedy Mbekeani, Director General of the East Africa Regional Development, Integration, and Business Delivery Office at AfDB, emphasized the global significance of the ERI.
In a speech read on his behalf, he noted that the index benchmarks the regulatory landscapes of 44 participating countries against international best practices, offering targeted recommendations for improvements.
“The ERI diagnoses the regulatory landscape and weaknesses of the 44 participating countries and benchmarks them against international best practices while providing appropriate recommendations to address identified gaps. Its impact has reached a global scale. In 2022, the ERI was globalized through the World Bank Global Electricity Regulatory Index (GERI), developed using the ERI methodology. Thanks to the Index, there is now a regulatory benchmarking framework that highlights key regulatory trends across continents,” he said.
Kenya’s Strong Regulatory Standing
Kenya has consistently performed well in the ERI rankings. In 2022, the country was listed among the top five African nations with well-developed regulatory frameworks, alongside Uganda, Egypt, Senegal, and Ghana.
Looking ahead, Kenya is developing regulations to facilitate the adoption of modern energy technologies, including Battery Energy Storage Systems, Green Hydrogen, and Electric Mobility.
The ERI workshop in Nairobi marks another step forward in Africa’s collective efforts to refine and strengthen electricity regulation, ultimately driving investment and improving service delivery across the continent.
