East African Community (EAC) partner states are gearing towards establishing East African Energy Union that would provide reliable and affordable energy to the business sector in the bloc integration.
The drive is being spearheaded by the Energy Regulator Association of East Africa (EREA) that basically seeks to harmonise the energy policies of the EAC member countries.
Its objectives are to match energy policies, building capacity for the energy sector in the region and provide advice as well as share information to enable the bloc facilitate trade in energy.
Making the revelation, EREA Executive Secretary, Dr. Geoffrey Mabea, at the EAC Headquarters in Arusha said that nowadays energy drives everything in the world, including digitalisation, adding that EREA was spearheading efforts to create the East African Energy Union.
"EREA is harmonising methodologies for arriving at tariffs across the region. Currently, every country has its own methods of arriving at tariffs. This makes investment in the region very difficult due to independent different energy tariffs".
"The East African Energy Union seeks to match the energy policies of the EAC member countries. It has three objectives, that is, to harmonise energy policies, capacity building for the energy sector in the region and provide advice and share information to enable EAC member states to facilitate trade in energy," said Dr. Mabea.
The Executive Secretary further noted that EREA had developed over 40 tools and frameworks to enhance harmonisation of energy policies and tariffs in the region. <
The Association is also at an advanced stage in establishing the East African Centre for Energy Regulation.
He was speaking with the EAC Secretary General, Dr. Peter Mathuki, when the former paid him a courtesy call, accompanied by EREA Finance and Administration Lead, CPA Augustino Massawe.
On his part, Dr. Mathuki noted that reliable and affordable energy sources of energy are key in the attainment of all the four stages of the EAC integration, namely the Customs Union, Common Market, Monetary Union and Political Federation.
Dr. Mathuki further said that energy was a driver and enabler of all sectors of the economy, adding that the harmonization of partner states' national policies governing energy was, therefore, critical.
Elaborating, he said matching the energy policies in the region and making it affordable was crucial in improving the business environment in the bloc, and increasing its attractiveness as an investment and trade hub.
"The first thing an investor seeking to set up a base in a country, usually asks is the cost of energy. We need to reduce the costs of energy in the region to facilitate investment," said Dr. Mathuki.
He said EAC was keen to partner with EREA as part of efforts to make informed policy and decision on energy matters at both the national and regional levels. Hence, urged EREA to put in place a structured engagement framework for the harmonization of energy policies in the region. Equally, the EAC Secretary General advised the association to seek observer status at the EAC, especially on matters to do with trade, infrastructure, energy and investment.
EREA is a multilateral association of National Energy regulators of the EAC member countries that was established through a Memorandum of Understanding on 28th May 2008.
It requires the national regulatory institutions to work together to promote the Energy Union and this time drumming for harmonization of energy regulatory frameworks, information sharing and sustainable capacity building.