Publication: Utility Performance and Behavior in Africa Today
Loading...
Files in English
3,713 downloads
682 downloads
383 downloads
851 downloads
258 downloads
Published
2021-08-12
ISSN
Date
2021-08-23
Editor(s)
Abstract
Electric utilities are central to the energy development agenda of Sub-Saharan Africa, as expressed in Sustainable Development Goal 7 (SDG 7), which commits the international community to ensure access to affordable, reliable, sustainable, and modern energy for all by 2030. Over the previous two decades, utilities in Sub-Saharan Africa have made impressive strides in expanding the delivery of modern electricity services to households and businesses. The continent’s electricity access rate increased from 28 percent in 2000 to 48 percent in 2018, and generation capacity grew from 63 gigawatts in 2000 to 106 gigawatts in 2017. However, COVID-19 threatens to upend these gains, rendering the challenge of reaching SDG 7 even more urgent and, at the same time, even more difficult to achieve. In response, utilities will have to step up to the task of providing service to millions who now live without electricity, ensure reliable electricity for health facilities and schools, become credible off-takers for private developers of renewable energy, and promote regional energy trade.
Link to Data Set
Citation
“Balabanyan, Ani; Semikolenova, Yadviga; Singh, Arun; Lee, Min A.. 2021. Utility Performance and Behavior in Africa Today. © World Bank. http://hdl.handle.net/10986/36178 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Analyzing Foregone Cash to Improve Utility Performance(World Bank, Washington, DC, 2021-08-12)The level of performance of an electric utility is determined by the soundness of its financial situation, the efficiency of its technology, and the quality of service it provides customers. Its financial underpinning is a balance of costs and revenue (from customer payments, government, and other sources). But revenue is not as straightforward as it might seem. The concept of foregone cash addresses the ‘cash on the table’ that pays for operations and servicing debt (revenue collected divided by the cost of operations and debt). The problem is the table may not have all the cash that ought to be there, such as money owed because of nonpayment’s by customers and money lost through inefficiencies in power generation or delivery. Consequently, there is a latent revenue that, if fixed, can provide vital improvements to a utility’s financial performance. This note analyzes the elements involved in understanding foregone cash in the context of cost recovery.Publication Catalyzing Utility Reform in Sub-Saharan Africa(World Bank, Washington, DC, 2021-08-12)Robust corporate governance is vital if power utilities are to perform well (Irwin and Yamamoto 2004; Foster and Rana 2020). Corporate governance has internal and external dimensions. Aspects of internal governance include board autonomy, the quality of board proceedings, separation of board and CEO roles, and clear expectations for the CEO’s performance. These expectations should then cascade down through management and staff. Employment policies help to ensure the presence of high-quality management and staff who can meet expectations. The methodical collection of data helps in monitoring performance of management, staff, and board. This means appropriate and supporting information systems must be available. This paper analyzes the data collected under UPBEAT’s T and A mandate to draw conclusions on the status of the region’s utilities. It also identifies what we call ‘quick wins’, simple achievements that could make utilities more transparent in the short term and spark important reforms. The paper first presents an overview of the literature and discusses objectives and methodology. It then moves on to present current T&A findings, making a case for certain improvements. Third, it recommends ways to obtain some quick wins. Fourth, and finally, the paper suggests ways to expand UPBEAT so it can track broader governance variables in the future.Publication Monitoring Performance of Electric Utilities : Indicators and Benchmarking in Sub-Saharan Africa(World Bank, Washington, DC, 2009)Performance of electric utilities is essential for the reform of the electricity sector in the Sub-Saharan Africa (SSA) countries. The World Bank is leading a number of initiatives to improve electric utility performance in SSA. The Africa Energy unit of the World Bank recently introduced the Electric Utility Capacity Assistance Program (EUCAP) for Africa. Among other activities, the EUCAP aims to collate relevant utility performance data within the context of the Bank operations, with the dual objective of assessing the impact of reforms and motivating utility management to achieve better outcomes. In order to reach this objective, performance benchmarking approach was developed. In this approach, benchmarking starts with the selection of the Key Performance Indices (KPIs) reflecting major elements of utility day-to-day operations, including technical, operational and financial. Then a framework to compare performance of the sector in various countries and among utilities using these indices is applied.Publication Understanding Sector Performance : The Case of Utilities in Latin America and the Caribbean(World Bank, 2009-07-29)This report provides innovative approaches to better understand infrastructure sector performance by focusing on the links between key indicators for private and public utilities, and changes in ownership, regulatory agency governance, and corporate governance, among other dimensions. By linking inputs and outputs over the last 15 years, the analysis proposes key determinants that have impacted sector performance in infrastructure sectors in Latin America and the Caribbean (LAC). It is about understanding how and to what extent the effect of such elements result in significant changes in the performance of infrastructure service provision. This report focuses on the distribution segment of basic infrastructure services. It covers electricity distribution, water distribution and sewerage, and fixed telecommunications. More specifically, the report does: i) depict sector performance with a broad set of indicators that describes the current situation as well its evolution during the last 15 years; ii) propose analytical frameworks for themes less developed in the literature such as regulatory governance and corporate governance for state-owned enterprises (SOEs); iii) benchmark the institutional designs of the regulatory agencies in the region for the water and electricity sectors; and iv) analyze the relationship between sector performance and regulation, private sector participation, and corporate governance.Publication African Utilities during COVID-19(World Bank, Washington, DC, 2021-08-12)The COVID-19 pandemic has spurred unprecedented economic disruption globally. The full scope of the virus’s impact on human health and economic activity remains to be seen, but two things are clear: (1) the most fragile economies, and most vulnerable segments of the world’s population, are least able to mitigate the impact, and (2) reliable and affordable utility services, electricity, water and sanitation, and internet and telephony, are critically important in slowing the spread of the virus. Many utility service providers in Sub-Saharan Africa were, in 2019, already under financial duress. The COVID-19 health crisis has and will continue to exacerbate such duress and jeopardize their ability to provide essential services. As the region faces its first recession in a quarter century, economic growth is expected to decline from 2.4 percent in 2019 to between –2.1 and –5.1 percent in 2020. Fiscal deficits are projected to widen amid falling government revenues. The harmful impacts on the energy sectors of the countries of Sub-Saharan Africa are expected to far exceed those on other sectors.
Users also downloaded
Showing related downloaded files
No results found.