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Utility regulation in Africa: How relevant is the British model?

Author

Listed:
  • Liam Wren-Lewis

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This article considers whether African utility regulators can draw useful lessons from the British experience over the past thirty years. We focus on three features that are considered key properties of the British regulatory model: price-cap incentive regulation, independent regulatory agencies and an emphasis on introducing competition where possible. For each property, we ask how relevant the model is for most African countries. Overall, we argue that although the British model probably has some lessons which can help improve utility performance in Africa, the problems that they help to solve are generally second-order. Ultimately, institutional weaknesses are the main root of regulatory failure in many African countries, and these weaknesses call for a model of regulation designed specifically to address them.

Suggested Citation

  • Liam Wren-Lewis, 2014. "Utility regulation in Africa: How relevant is the British model?," Post-Print halshs-01109527, HAL.
    • Handle: RePEc:hal:journl:halshs-01109527
    DOI: 10.1016/j.jup.2014.09.002
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    Cited by:

    1. Lodge, Martin & Stern, Jon, 2014. "British utility regulation: Consolidation, existential angst, or fiasco?," Utilities Policy, Elsevier, vol. 31(C), pages 146-151.
    2. Jensen, Olivia & Wu, Xun, 2017. "The hybrid model for economic regulation of water utilities: Mission impossible?," Utilities Policy, Elsevier, vol. 48(C), pages 122-131.
    3. Victor O. Ojo & M. Sohail, 2023. "Assessing the Performance of State Water Utilities in Nigeria: Towards Achieving the Sustainable Development Goal on Drinking Water," Sustainability, MDPI, vol. 16(1), pages 1-23, December.

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    Keywords

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    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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