Page 8 - EPSI Magazine Issue 8 final 2018.indd

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Electricity Regulatory Authority i. Licensing all activities in the elec- a. With support from Nor-
(ERA) tricity sector way ERA took off quickly and
ii. Regulating all Licensees and developed the supporting
enforcing compliance in the sector regulations
especially on quality of supply. b. Licensed over 20 genera-
iii. Setting user tariffs and all power tion entities, approved tariffs
sales prices c. With support of KfW de-
iv. Monitoring the sector especially veloped unique tariff systems
verifying and approving all invest- that stimulated renewable
ments drawing a return through the investment
user tariffs.

Electricity Disputes Tribunal i. Attending to disputes in the elec- a. Took long to get going
(EDT) tricity sector before parties resort to b. Headed by a person fit to
ordinary courts of law be a judge of the High Court
ii. Attending to appeals against of Uganda.
decisions of ERA c. Speedily executed its tasks
and matters referred to it.

Did Uganda Realize its Expectations

from Unbundling UEB?

Uganda expected several things from the From draining the national treasury to directly in-
unbundling of UEB; some of which did not come jecting billions into the treasury is a noble outcome
as quickly as people had hoped. But there is ev- of unbundling. Generally, it is believed that the un-
idence to show that over the period significant bundled electricity sector has stimulated business
achievements were made; many of which would yielding UGX 1.8 trillion form UGX 1.6 billion into
most probably never have been made but for the the economy.
unbundling of UEB:
b) Because of the reputation of ERA, the regula-
a) The two major concessions (Eskom Ugan- tor and the stable economic environment in Ugan-
da Limited and Umeme Limited). Investment da 20 private investment projects in the generation
most of which would have had to come from the segment have been licensed and being construct-
hard-pressed national treasury, have been made. ed if not already generating power.
It is estimated that Umeme Ltd alone has invested
well over US $ 500 million in the distribution net- c) Where there existed one electricity supplier
work. It has grown the customer base from about in the country there now six known suppliers; some
240,000 to 1,290,000 as of June 2018. The distribu- operating in places so far flung it is most unlikely
tion network has almost doubled from 17,000km UEB would have reached them by now. REA anoth-
to 33,000km. Umeme is famed to be among the er product of unbundling has rolled out several
top ten tax payers with an annual contribution mini grids for private sector to bid and take over
corporation tax of UGX 75 billion, VAT collections operations. One or two of these have not been the
in excess of UGX 7.8 billion and a PAYE from its roaring success everyone had hoped, but the regu-
1500 staff of UGX 1.3billion. We have heard that latory framework (seen as the main obstacle to their
Umeme will continue injecting about US $ 120 success) will soon be put in place by the regulator
million per year for the rest of its concession. to address this impediment.