The Uganda Electricity Regulatory Authority (ERA) was inaugurated in 2000 under the Electricity Act. Its mandate is to regulate the generation, transmission, distribution, sale, export, and import of electrical energy in Uganda. ERA’s primary objective is to ensure that the power sector operates in a fair, efficient, and transparent manner for the benefit of all stakeholders.
It monitors the performance of licensed companies to ensure that they comply with the set standards and regulations. The authority also promotes competition in the energy sector to ensure that consumers get quality services at affordable prices.
In conclusion, the Uganda Electricity Regulatory Authority plays a crucial role in ensuring that the energy sector operates in a fair, efficient, and transparent manner.
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Responsibilities of the agency
The Uganda Electricity Regulatory Authority (ERA) is responsible for ensuring that the power sector operates in a safe, reliable, and efficient manner. Its prominent duties are as follows:
Licensing
This agency is responsible for licensing and regulating power generation, transmission, and distribution companies. This includes ensuring that companies comply with technical standards, environmental regulations, and consumer protection laws.
Implying taxes
The agency sets and enforces tariffs, which are the prices that consumers pay for power. It ensures that tariffs are fair and reasonable and that they cover the costs of providing electricity services.
Monitors adherence
It monitors and enforces compliance with performance standards for companies. This means ensuring that companies meet targets for reliability, quality of service, and customer satisfaction.
Promotes competition
The unit promotes competition in the energy sector by facilitating access to the grid for independent power producers and encouraging the development of renewable energy sources.
Resolve disputes
It is responsible for resolving disputes between power companies and consumers, as well as between power companies themselves. This contains handling complaints, conducting investigations, and imposing penalties for non-compliance.
Types of licenses
ERA issues various licenses to entities involved in the generation, transmission, distribution, and sale of electricity.
Generation permit
One of the licenses issued by the division is the Generation License, which is required for any entity that wishes to generate energy in Uganda. This license is valid for a period of up to 20 years and is subject to renewal upon expiration. The license outlines the conditions that the generator must adhere to, including safety standards, environmental regulations, and reporting requirements.
Transition license
Another license issued by the unit is the Transmission License, which is required for any entity that wishes to transmit energy in Uganda. This authorization is also useful for a period of up to 20 years and is subject to renewal upon expiration. The approval outlines the conditions that the transmission entity must adhere to, including safety standards, system reliability, and reporting requirements.
Distribution license
It issues Distribution Licenses to entities that wish to distribute electricity in Uganda. This license is valid for a period of up to 20 years and is subject to renewal upon expiration. The authorization outlines the conditions that the distribution entity must adhere to, including safety standards, system reliability, and customer service standards.
It is important to note that ERA has the authority to revoke any license if the licensee fails to comply with the conditions outlined in the license. Therefore, entities must adhere to the regulations set forth by ERA to maintain their licenses and operate in the power sector in Uganda.
Types of tariffs
ERA has set three types of tariffs to regulate the power sector.
Domestic tariff
This applies to domestic consumers. This surcharge is set at a fixed rate per unit of energy consumed and is based on the consumer’s monthly consumption. The more power consumed, the higher the rate charged.
Commercial tariff
The Commercial Tariff applies to commercial consumers. This taxation is also set at a fixed rate per unit of energy consumed and is based on the consumer’s monthly consumption. The more energy consumed, the higher the rate charged.
Industrial tariff
This tariff is set at a fixed rate per unit of power consumed and is based on the consumer’s monthly consumption. The more energy consumed, the lower the rate charged.
It is important to note that the ERA regularly reviews and updates these tariffs to ensure that they remain fair and reasonable for all consumers. Consumers are encouraged to monitor their energy consumption and choose the appropriate tariff that suits their needs.
The alliance between ERA and the electricity industry
The Alliance between ERA and the Electricity Industry is a crucial partnership that has brought about significant changes in the energy sector. ERA, as the regulator, has been working closely with the industry players to ensure that the sector is efficient, reliable, and affordable. This partnership has led to the development of policies, regulations, and guidelines that have improved the quality of service delivery in the sector.
One of the key achievements of this alliance is the reduction of power tariffs, which has made energy more affordable to Ugandans. Through the partnership, ERA has been able to monitor the operations of the industry players and ensure that they adhere to the set standards. This has led to the reduction of operational costs, which have been passed on to the consumers in the form of reduced tariffs.
