Another important measure is for the region to revive electricity regulation to attract investment in the sector.

SADC adopted the principle of cost-reflective tariffs as far back as 2004. However, most countries are failing to migrate to cost-reflective electricity tariffs due to challenges in raising local tariffs to cushion consumers.

A recent survey conducted by Regional Electricity Regulators Association of Southern Africa showed that the region’s energy sector is not self-sustaining.

For example, hydroelectricity generation – which is the most common method of producing power in the region – costs between 6 and 8 US cents to produce a kWh while it

costs an average 7.5 USc to make a kWh of electricity using coal-fired power stations.

Such tariffs are considered as not providing the right signals for new investment and efficient use of electricity.

“Ministers noted that 12 out of the 15 SADC Member States have introduced regulatory oversight in the form of an energy or electricity regulatory agency and that the remaining Member States are at different stages of the process,” said a statement released by SADC energy ministers.

Only Namibia and Tanzania have reached cost-reflective tariffs, and therefore the ministers adjusted the timeframe of their previous decision and reaffirmed their commitment to ensure that the SADC Region reaches full cost-reflective tariffs by 2019. Malawi is expected to host the next meeting of SADC Energy Ministers in 2016.