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Attracting private investment and delivery of services to the poor
majority are two of the major goals for reforming and regulating
the power sector in sub-Saharan Africa. This book believes the
important determinants of new investment in the electricity
industry are the licensing process and the tariff regime. If the
licensing process is to attract private investors, the procedures
must be clear and must function efficiently and transparently, and
the tariff regime reflect actual costs. The rationale for
attracting private investment is straightforward -- the inadequacy
of existing power systems in the region to meet demand. In many
countries, frequent power cuts linked to inadequate electricity
generation capacity are the norm rather than the exception. The
rationale for considering the plight of the poor is based on both
ethical and sustainability considerations. In ethical terms, access
to energy is a fundamental human right in the context of social
justice. In sustainability terms, a reformed
private-investor-dominated power sector that does not recognize the
plight of the poor may represent sound economics yet prove to be
socially and politically unsustainable. It is therefore necessary
to ensure that the recommended regulatory reforms are sensitive to
the needs of the poor majority. This volume examines the extent to
which the twin goals of attracting investment and providing energy
to the poor are addressed by the existing legal and regulatory
framework. By studying six countries in the east and southern
African region, some helpful lessons worth sharing with other
African countries are learned.
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