The Electricity Regulatory Index (ERI), an annual Africa Development Bank (AfDB) ranking, recently unveiled its 2022 edition rankings of the Sierra Leone Electricity and Water Regulatory Commission (SLEWRC) as the eight (8) best regulators among forty-four (44) regulators in Africa.
The ERI is an extensive AfDB-led study, that gauges the developmental stages of regulatory frameworks within Africa’s electricity sector. The study’s empirical approach identifies areas necessitating improvement, while comprehensively assessing these regulatory structures’ impacts on the continent’s electricity performance. It also deepens understanding concerning regulatory authorities’ operations and the human and financial constraints impacting electricity sector regulation across Africa.
Under the ambitious New Deal on Energy for Africa, the AfDB targets achieving universal energy access across the continent by 2025. Central to realizing this vision is attracting substantial private investment into the energy and power infrastructure of African nations. Key to catalyzing such investments is the establishment of robust regulatory environments within the power sector, anchored in legal frameworks, transparent governance, and effective implementation of crucial elements for fostering sustainable and inclusive energy development in Africa.
The ERI is designed to assess an African country’s electricity regulatory sector development through three sub-indexes:
Regulatory Governance Index (RGI): Evaluating a country’s regulatory framework development, focusing on transparency, predictability, and credibility, based on international best practices.
Regulatory Substance Index (RSI): Assessing how electricity sector regulators implement practices influencing outcomes, including economic and technical regulations, commercial electricity quality, and licensing frameworks.
Regulatory Outcome Index (ROI): Gauging the regulator’s impact on the electricity sector from the utility’s perspective, aligning the combined average of RGI and RSI with real influence on power utilities and the sector.
The SLEWRC ranking has been gradual and consistent over the years. First recognized by AfDB’s ERI with 19th place in 2019, 18th in 2020, and 16th in 2021; and doubled its ranking in 2022 to become the 8th best regulatory Commission in the continent.
The Sierra Leone Electricity and Water Regulatory Commission, under the leadership of Director General, Dr. Emmanuel Mannah, has been pivotal in shaping Sierra Leone’s energy landscape, contributing significantly to the 2022 ERI ranking. Recommendations to propel Sierra Leone towards the top five countries in the ERI spotlight the necessity of ensuring the sector’s financial independence, mitigating government interference, and strengthening utility accountability.
