Algeria appoints consultants for power sector reform

The Algerian government has appointed advisors to assist in its process of reforming the energy sector, which has been in state hands for decades. A government official told the Reuters news agency Wednesday that four consulting firms, Arthur Anderson, Mazars and Guerard, PricewaterhouseCoopers and Deloitte and Touche have been selected following a tender process launched last month.

Algeria’s parliament is expected to pass the necessary legislation intended to reform the electricity industry and allow private ownership for the first time. State run electricity and gas firm Sonalgaz will also be reformed. A majority stake will remain in the hands of the government.

The official said,” We are looking for experts to advise us on the overall restructuring of the electricity industry, as well as the reorganization of Sonalgaz”.

The draft law proposes the divisions between production, distribution and transport in both gas and electricity.

Algeria plans to establish a regulatory body called the Electricity and Gas Regulation Committee and has appointed Ernst & Young and Nera Economic Consulting of the US to advise on its creation. The committee will enforce competition rules and ensure transparency and fair access to the state-controlled power transport network.

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