The Electricity Regulatory Authority (ERA) on 3rd February 2017 tipped the Somaliland Electricity Association (SEA) on measures for creation of a vibrant, efficient Electricity Supply Industry in Somaliland.
While speaking during a meeting hosted by ERA for a delegation from the Somaliland Electricity Association, Dr. Geofrey Okoboi, the Director Economic Regulation, on behalf of the Acting Chief Executive Officer noted that for any electricity sector to thrive, it must have an independent regulator that balances and protects the interests of all stakeholders.
Dr. Okoboi further noted that prior to reforms in Uganda’s Electricity Supply Industry, the country grappled with several challenges, including load shedding and high energy losses. With the enactment of the Electricity Act, 1999, however, and subsequent unbundling of the sector into the generation, transmission and distribution segments; and creation of an independent regulator, the sector has registered remarkable improvements.
In his remarks, Mr. Mohamoud Ahmed Libar, the Chairman of SEA noted that the Government of Somalia was in the process of enacting the Electricity Act in order to address bottlenecks in the electricity sector. Currently, electricity business in Somaliland is characterized by participation by only the private sector, with no regulator, and very high end-user tariffs of up to US Cents 75.
The delegation of the Somaliland Electricity Association was in Uganda on a World Bank funded benchmarking tour, with particular interest in the requisite legal, licensing and tariff frameworks for the establishment of a robust Electricity Supply Industry.