Madagascar is launching a comprehensive overhaul of its electricity pricing system with support from the African Development Bank (AfDB). The sector regulator, Arelec, plans to implement a new…
Madagascar is launching a comprehensive overhaul of its electricity pricing system with support from the African Development Bank (AfDB). The sector regulator, Arelec, plans to implement a new tariff structure that will be directly tied to the actual costs incurred by utilities for energy generation and delivery to consumers. Under the AESTAP program, financed through the Sustainable Energy Fund for Africa (SEFA), the Ministry of Energy and Arelec are introducing modern tools for economic control.
A central component of this reform is a large-scale cost audit. Experts aim to determine the true expenditures of both the state-owned utility Jirama and private operators serving rural areas for both generation and distribution. Rivoarilala Rasolojaoana, Executive Secretary of Arelec, stated that the current pricing model does not reflect the actual operating expenses of the companies. Establishing the precise cost of service is a necessary precursor to setting new tariffs, a step designed to make the process transparent for all market participants.
This is a source-linked briefing. Read the original report from Pravda .