On the 16th and 17th, a workshop was held on the reform of Cape Verde’s electricity sector, focusing on the privatization of the Cape Verde Electricity Production Company (EPEC) and the Cape Verde Electricity Distribution Company (EDEC).
During the workshop, the commercial structure and revenue models of the companies were discussed, as well as EPEC’s compensation structure and its impact on consumer tariffs.
The allocation of risks between the privatized and public entities was also debated, with EPEC assuming the production risks and EDEC the distribution risks. In addition, the role of the Multisectoral Regulatory Agency for the Economy was highlighted as crucial to ensuring fair and balanced tariffs.
The workshop underlined the importance of reforming the electricity sector for the future of Cape Verde, seeking to make the system more efficient and secure.
The event was attended by important stakeholders, including the Special Projects Management Unit (UGPE), the Government-appointed Task Force, the Multisectoral Economic Regulation Agency, the Electricity and Water Company, the Ministry of Finance, and the Minister of Industry, Trade and Energy, as well as Electra, the Ministry of Energy, the World Bank and international consultants.
Participants reaffirmed the need for a collaborative approach to ensure effective privatization that benefits both the sector and end users, promoting better service and a more sustainable and competitive energy sector.
It should be noted that the Government of Cape Verde (GoCV) has justified the privatization of EPEC and EDEC as part of a strategy to increase the efficiency of the electricity sector and attract private investment, with the aim of modernizing the energy infrastructure and ensuring a more competitive and affordable supply.