The Reforming Of The Electricity Supply Industry: Competition And Regulation: An Analysis Of ESI Reforms In Namibia

ABSTRACT

This study enquires into the choices to be made when selecting and implementing a reform model for the electricity industry. It argues that the appropriate reform model depends on the circumstances in the considered jurisdiction. Especially in small and less developed electricity systems a dilemma may emerge: the technical circumstances suggest the implementation of a model with few competitive elements, whereas political circumstances urge for a competition-oriented model. Hence, especially in small systems, a delicate tradeoff emerges that significantly complicates the decisions to be made. This is obviously relevant for Namibia. There are no standard answers to complicated questions of reforming markets. The implications of these reforms and implementation strategies for transparency in the regulatory systems, and improving accessibility of electricity, are yet to be seen. The study has identified the drivers of reform which are different from developed to developing states. It has also proven that successful reforms require an understanding of the source of monopoly power in the industry, as well as the size and characteristics of the market. It requires a transparent and clear regulatory framework capable of separating each role of the stakeholders clearly, separating competitive elements from natural monopoly elements. Significantly, the study has analysed the relevant laws and regulations. The relevant provisions of the Namibian Constitutions in particular, have been discussed under appropriate headings. Special emphasis has been placed on the Electricity Act of 2000, the Competition Act of 2003 and the White Paper on Energy of 1998. The powers, duties and functions of the Electricity Control Board and other regulators particularly in SADC have been critically analysed. An enquiry has also been made into the purposed Gas Regulatory Authority as well as the Water Regulator. The Study has suggested clear recommendations on the legislation which require amendment.