Reform Project. The Reform Project objective is to create an enabling environment to improve the financial viability of, and to ensure good governance in, the power sector, with the intent of improving the quality and quantity of the electricity supply. This objective encompasses distinct but interconnected results, which are improvements in the financial viability of the electricity sector, the quality of customer service, the reliability of electricity, and the quantity of electricity supplied. The key indicators for these results are, respectively, Senelec’s operating cost-recovery ratio, average customer satisfaction, average frequency and duration of outages, and electricity supply (the sum of domestic electricity generation and imports), plus additional indicators to measure results. For example, adherence with CRSE’s service standards shall be measured and assessed along with overall customer satisfaction. Similarly, electricity supply shall be interpreted in relationship to losses and electricity consumption. Analyzing these indicators in conjunction with consumption per capita and access rates enables MCC and the Government to assess the extent to which changes in electricity consumption levels are driven by new or existing consumers. The Reform Project is comprised of three activities (Sector Governance, Regulatory Strengthening, and Utility Strengthening), which together are expected to achieve the Reform Project Objective. These are designed to re-define the rules of the game (i.e. policy reform), support organizational capacity and performance (i.e. institutional development), and strengthen the relationships among electricity actors. The Sector Governance Activity changes the structure of the sector notably through an update of the legal and regulatory framework, the unbundling of Senelec into public subsidiaries, the creation of a transmission system operator, the re-definition of distribution perimeters, and the clarification of private and public ownership of rural electrification assets. It creates an online “one-stop shop” to reduce the cost of doing business in the electricity sector. It also strengthens the Ministry of Energy’s capacity to plan, monitor, and evaluate investments in the sector, which is expected to improve the cash flow of electricity providers through improved decision-making. Together, these actions are designed to decrease the costs of electricity sector companies along the supply chain from production to retail. The Regulatory Stre...
