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Electricity Pricing

The Dawn of Cost-reflective Prices and Associated Challenges in the Economy

  • Research Code : MB16-01-00-00-00
  • SKU : EG00136-AF-MR_00631
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  • Release Date : 10-Jul-2015
  • Region : Africa
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Electricity cost is critical to developing an electricity industry and has been a contentious issue in Sub-Saharan Africa. Electricity price has not reflected the true cost of generation and supply, hampering investment in electricity infrastructure, resulting in frequent power outages, and constraining economic growth of Sub-Saharan economies. The situation is changing, with countries such as South Africa, Tanzania, Kenya, Ghana, and Nigeria implementing cost-reflective tariffs to sustain their electricity infrastructure and attract private investment. Implementing a cost-based tariff structure will have a lasting impact on public utilities, private power producers, and domestic, industrial, and mining consumers in the target economies.
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