ERA Annual Report 2013/14

ANNUAL REPORT
2013 -14
The ERA team in 2014.
Table of Contents
Members of the Electricity Regulatory Authority............................7

The Management Team...................................................................8
Statement by the Chairman.............................................................9
The Chief Executive Officers Report.............................................11
1.0
1.1
1.2
1.3
1.4
1.5
1.6
1.7
CORPORATE PROFILE..............................................................13
Regulatory Mandate..............................................................13
Functions of the Authority......................................................14
Vision........................................................................................14
Mission......................................................................................14
Core Values.............................................................................14
Principal Place of Business and Registered Address..........15
Bankers.....................................................................................15
2.0 INTRODUCTION.......................................................................16
2.1 Introduction.............................................................................16
2.2 Organization of the Annual Report......................................16
3.0
3.1
3.2
3.3
3.4
3.5
CORPORATE GOVERNANCE..................................................17
Corporate Governance Statement.....................................17
The Authority...........................................................................17
Authority Committees............................................................17
Meetings of the Authority......................................................18
ERA Secretariat.......................................................................19
4.0
4.1
4.2
4.3
4.4
4.5
ELECTRICITY INDUSTRY PERFORMANCE.................................21

Generation..............................................................................21
Transmission.............................................................................23
Distribution...............................................................................23
Tariffs........................................................................................24
Projects under Development................................................24
4.6 Installation Permits..................................................................29

4.7 Consumer Protection and Complaints Resolution.............30
5.0 COMPLIANCE OF LICENSEES..................................................31
6.0 ENVIRONMENTAL CONSIDERATIONS IN LICENSING AND

OPERATION OF ELECTRICAL INSTALLATIONS.........................32
6.1 Prior to award of license........................................................32
6.2 Environmental compliance monitoring post award of
License.....................................................................................32
6.3 Collaborations........................................................................32
7.0 EXTERNALLY FOCUSED RESPONSIBILITIES...............................33
7.1 International Coordination and Partnerships......................33
7.2 Sector Stakeholder Engagement, Education and
Sensitization.............................................................................33
8.0 HUMAN RESOURCE AND ADMINISTRATION..........................36
8.1 Staffing Levels by Department..............................................36
8.2 Training and Development...................................................36
9.0 ANNUAL FINANCIAL STATEMENTS..........................................38
9.1 Statement of Authority Members (Directors)
responsibilities..........................................................................38
9.2 Auditor Generals Opinion....................................................38
9.3 Statement of Financial Position.............................................39
9.4 Statement of Comprehensive income................................40
9.5 Statement of Cash flows........................................................41
9.6 Statement of Equity................................................................42
9.7 Accounting Policies and Notes to the Annual
Financial Statement................................................................... 42
ANNUAL REPORT 2013 - 2014
Abbreviations
AfDB
African Development Bank
MYT
Multi -Year Tariff
BECS
Bundibugyo Energy Cooperative Society
NEMA
National Environment Management Authority
BEL
Bujagali Energy Limited
PACMECS
CEO
Chief Executive Officer
Pader/Abim Community Multipurpose Energy

Cooperative Society
EAPP
East African Power Pool
PPA
Power Purchase Agreement
ECC
Electricity Consumer Committee
PPP
Public Private Partnership
ERA
Electricity Regulatory Authority
PV
Photovoltaic
ESI
Electricity Supply Industry
REFiT
Renewable Energy Feed-in-Tariff
GAAP
Generally Accepted Accounting Principle
UEDCL
Uganda Electricity Distribution Company Limited
GET FiT
Global Energy Transfer for Feed-in-Tariff
UEGCL
GoU
Government of Uganda
Uganda Electricity Generation Company

Limited
HFO
Heavy Fuel Oil
UETCL
Uganda Electricity Transmission Company

Limited
HR
Human Resource
UMA
Uganda Manufacturers Association
IFRS
International Financial Reporting Standards
UNBS
Uganda National Bureau of Standards
JICA
Japan International Cooperation Agency
WENRECO
West Nile Rural Electrification Company Limited
KPLC
Kenya Power and Lighting Company
KFW
Kreditanstalt fr Wiederaufbau
KML
Kilembe Mines Limited
MEMD
Ministry of Energy and Mineral Development
MoFPED
Ministry of Finance, Planning and Economic

Development
Members of the Electricity Regulatory Authority
Mr. Richard Santo Apire

Chairman
Mrs. Lydia Kiriire Opuru

Member
Dr. Muhammad Serunjogi

Member
Eng. Fabian Tibeita

Member
The Management Team
Dr. Benon M. Mutambi

Mr. Patrick Mwesige

Director Financial & Administrative Services
8
Eng. Ziria Tibalwa Waako

Director Technical Regulation
Dr. Geofrey Okoboi

Director Economic Regulation
STATEMENT BY THE CHAIRMAN
n behalf of the Members, Management and Staff of the

Authority, I am delighted to present this report on the
performance of the Electricity Regulatory Authority during
the financial year 2013/14.
During this financial year, ERA continued to diligently exercise
its mandate as provided for under the Electricity Act, 1999, with
the ultimate goal of improving the Electricity Supply Industry in
Uganda. To this end, the Authority registered an increase in
the countrys installed generation capacity and licensed more
projects to further boost the generation capacity. This was possible
due to ERAs deliberate effort to promote private investments in
the generation segment, which saw the Authority engage in a
number of initiatives, including the development of standardized
Power Purchase Agreements, Implementation Agreements, and
model licenses.
The Authority adopted the Multi-Year Tariff regime for UETCL in

order to incentivize the system operator to operate efficiently
and benefit from a longer planning horizon. In the distribution
segment, there was marked reduction in energy loss levels, and
growth in the number of new connections made by the largest
distribution utility, Umeme Limited, coupled with increased rollout of the prepayment metering system. These achievements
notwithstanding, the Authority recognizes the need for
improvement in the Quality of Supply and Service offered by all
distribution utilities.
The Authority with support from the Global Energy Transfer

for Feed-in-Tariff program also embarked on the process of
streamlining its project due diligence, and secured the Partial Risk
Guarantee facility from the World Bank to mitigate key risks faced
by developers of power projects. To our enchantment, in 2014,
Uganda was ranked 10th out of 55 countries from Latin America,
Africa, and the Caribbean by Bloomberg due to its favourable
investment climate for clean energy investments.
In an effort to ensure continued enhancement of efficiency in the

ESI, the Authority during the review period intensified compliance
monitoring of distribution and generation companies. ERA also
focused on the integration of environmental aspects into the
licensing and operation of electrical installations to ensure that
licensed projects complied with their environmental obligations.
This initiative was greatly supported by the Authoritys strong
relationships with Government agencies such as the National
Environment Management Authority (NEMA) and the Department
for Water Resources Management (DWRM). Cooperation with
these agencies has contributed towards improving the countrys
investment climate through easing transaction of business for
private developers intending to develop power projects in
Uganda.
Notably, the boost in the generation capacity was augmented

by improvements in the transmission segment, with several
projects for evacuating power plants and facilitating regional
interconnections undertaken by UETCL during the review period.
A significant development for the ESI during the review period

was the introduction of the Quarterly Tariff Adjustment (QTA)
mechanism for the determination of the electricity retail tariffs
charged to consumers in each billing period. The QTA mechanism
Statement by the Chairman
offers transparency on tariff determination and allows for the

recovery of costs of production within the tariff. The presence of
the cost recovery mechanism is an attraction to private investors
in the Electricity Supply Industry, which is expected to increase
the amount of power generated and to result into a reduction in
the end-user tariffs in the long-run.
While the Authority fully exercised its powers to maintain a
stable ESI in the financial year 2013/14, external economic
forces adversely impacted on the operations of the industry.
Subsequently, there was an increase in domestic tariffs for the
service territories operated by WENRECO, PACMECS, and BECS.
As we progress into the new financial year with renewed
commitment to maintaining a favourable regulatory environment
that caters for the interests of ERAs diverse stakeholders, I wish
to extend my sincere appreciation to all the stakeholders that
have continuously supported the Authority. To the Government
of Uganda in general, the Minister of Energy and Mineral
Development and the Minister of Finance, Planning and Economic
Development in particular, Development Partners and the other
stakeholders, we say thank you. To my colleagues - the Members
of the Authority, the Management and Staff, thank you for your
commitment to serving ERA and the Electricity Supply Industry as
a whole.
A substation at the Electro-Maxx power plant in Tororo District.
10
Richard Santo Apire

Chairman
THE CHIEF EXECUTIVE OFFICERS REPORT
he financial year 2013/14 was one of growth for the Electricity

Supply Industry, marked with a 20 MW increase in the countrys
installed generation capacity to 855 MW (835 MW in 2012/13).
Large hydropower plants accounted for most of the installed
generation capacity (73.7%), while mini-hydro plants, thermal
plants, and bagasse co-generation contributed 7.7%, 11.7%, and
7.0%, respectively. To further boost the generation capacity, the
Authority licensed eight (8) projects in Eastern, Western, Central,
and Northern Uganda, with a combined capacity of 49.7 MW.
Construction of these projects is expected to start in the first
quarter of 2015 and commissioning, in the second quarter of
2017. The Authority also issued 22 permits to intending developers
to enable them carry out feasibility studies and related activities
for proposed generation projects worth a combined capacity of
242 MW.
During the review period, the Authority oversaw the improvement
in power transmission infrastructure; as a result, the national
transmission grid grew by 131km, bringing the total length to
1,757km. UETCL developed more projects for evacuation of
power plants and undertook regional interconnection projects
with Kenya, Rwanda, Tanzania, South Sudan and the Democratic
Republic of Congo in order to boost power trading and security of
supply in the region. The system operator also undertook projects
to improve on the reliability and availability of the High Voltage
network. In a bid to further improve the operational efficiency of
UETCL, the Authority approved the Multi-year Tariff regime in 2014,
for a period of three calendar years (2014 2016). This framework
will incentivize UETCL to reduce transmission losses from 3.7% in
2013 to 3.3% in 2016.
Remarkably, there was a reduction in energy loss levels in the

distribution segment, with the largest distribution utility, Umeme
Limited achieving an energy loss of 21.3% (against the Authority
target of 20%) from 24.3% in 2013. Umeme Limited registered
increased energy sales of 2,277 GWh during the review period
(compared to 1,937 GWh in 2012/13). This was mainly due to
increased demand for energy and reduction in energy losses.
The segment also registered growth in the number of new
connections (76,108 as at 30th June 2014 compared to 60,967
as at 30th June 2013) and increased roll-out of the prepayment
metering system. In the next financial year, ERA will consolidate
these achievements and focus on improvement in the Quality
of Supply and Service offered by the distribution utilities, for the
benefit of electricity consumers.
In January 2014, ERA adopted the Quarterly Tariff Adjustment
(QTA) mechanism for the determination of tariffs payable by
consumers served by Umeme Limited for the electricity that
they consume. With the QTA mechanism, ERA approves base
electricity end-user tariffs at the beginning of each calendar year.
These remain unchanged throughout the year but are adjusted
on a quarterly basis to factor in changes in three macroeconomic
factors, namely: the inflation rate, the exchange rate and the
international fuel prices. For the year 2014, the base tariff was set
at UGX 520.6 and was adjusted accordingly through the quarters.
Notably, due to favourable movements in the macroeconomic
factors, consumers enjoyed reduced tariffs during the 4th quarter
of the financial year 2013/14 as follows: Domestic UGX 517.3,
Commercial UGX 471.1, Medium Industrial UGX 448.70, and
Large Industrial UGX 307.10.
11
The Chief Executive Officers Report
A major achievement for the Authority during the review period

was the heightened integration of environmental concerns
into ERAs regulatory function. The Authority reviewed the
Environmental and Social Impact Assessment reports for all the
eight (8) applicants for licenses and the 22 applicants for permits
to conduct feasibility studies for various proposed power projects.
ERA also assessed quarterly monitoring reports, inspected
licensee installations, and provided feedback on these to NEMA.
The Authority is in advanced stages of signing Memoranda of
Understanding with NEMA and the DWRM to streamline operations
and enhance efficiency between ERA and the two Government
agencies.
being of its staff by enriching the existing employee wellness

program.
In order to promote transparency and participation by

stakeholders in ERAs regulatory function, the Authority continued
to constructively engage its stakeholders during the review
period. The engagement took the form of public hearings and
consultations in respect of nine (9) applications for development
of power projects across the country. The Authority was also
involved in outreach programs to sensitize the public on various
issues, which took the form of trade fairs, conferences, and media
shows.
Benon M. Mutambi, PhD

During the financial year 2013/14, ERA recruited four (4) staff
and promoted five (5) staff in an effort to enhance the internal
capacity of the Secretariat to deliver on the Authoritys mandate.
ERA supported 30 staff to undertake short-term trainings in diverse
areas, and sponsored nine (9) staff for long-term trainings. Further
to this, the Authority continued to promote the health and well12
I take this opportunity to thank the various stakeholders whose

support has been pivotal to the achievement of ERAs goals
during the financial year 2013/14. I am especially grateful to
ERAs line Minister, the Development Partners, the Members,
Management and Staff of the Authority; and look forward to
more of your cooperation and commitment to the development
of the Electricity Supply Industry during the coming year.
1.0 CORPORATE PROFILE
1.1 Regulatory Mandate
(g)
The Electricity Regulatory Authority is established as a statutory

body in accordance with the Electricity Act 1999, Chapter
145, Laws of Uganda. The Act mandates ERA to regulate the
generation, transmission, sale, export, import and distribution of
electrical energy in Uganda.
To approve rates of charges and terms and conditions

of electricity services provided by transmission and
distribution companies;
(h)
To review the organisation of generation, transmission

and distribution companies or other legal entities
engaged in the generation, transmission and
distribution of electricity to the extent that that
organisation affects or is likely to affect the operation
of the electricity sector and the efficient supply of
electricity;
(i)
To develop and enforce performance standards

for the generation, transmission and distribution of
electricity;
(j)
To encourage the development of uniform electricity

industry standards and codes of conduct;
1.2 Functions of the Authority

Under Section 10 of the Electricity Act, 1999, the Authority is
statutorily charged with the following functions:(a) To issue licences for:
(i) the generation, transmission, distribution or sale
of electricity; and,
(ii) the ownership or operation of transmission
systems;
(b) To receive and process applications for licences;
(c) To prescribe conditions and terms of licences issued
under the Act;
(d) To modify licences issued under the Act;
(e)
To make and enforce directions to ensure compliance

with licences issued under the Act;
(f)
To establish a tariff structure and to investigate tariff

charges, whether or not a specific complaint has
been made for a tariff adjustment;
(k) To establish a uniform system of accounts for

licensees;
(l) To advise the Minister regarding the need for
electricity sector projects;
(m) To prepare industry reports and to gather information
from generation, transmission and distribution
companies;
(n)
To prescribe and collect licence fees;
(o) To provide for the procedure for investment

programmes by transmission and distribution
companies;
13
Corporate Profile
(p) To approve standards for the quality of electricity

supply services provided;
(q) To approve codes of conduct in respect of the
operation of transmission and distribution systems;
(r)
To acquire information and carry out investigations

relating to any of its functions; and
(s)
To perform any other function that is incidental or

consequential to its functions under this section, or as
may be conferred on it by any other law.
1.3 Vision
A well developed and sustainable electricity industry that meets
the national and regional demand.
1.4 Mission
Regulating the Electricity Industry for efficient and reliable supply
at equitable prices.
1.5 Core Values

In pursuit of its Mission and Vision, the Authority is guided by
principles and behaviors reflected in its core values namely:
Stakeholder Sensitivity, Professionalism, Teamwork, Equity and
Fairness and Sustainability. In its staff, these values have been
inculcated and emphasized to create a Secretariat that ably
addresses the needs of all stakeholders.
14
1.5.1 Professionalism
ERA continuously strives to achieve high quality, timeliness and
excellence in its service, coupled with honoring the institutions
commitments, which has greatly enhanced the ERA staff
professional conduct in performance of tasks and delivery of
outputs.
1.5.2 Teamwork
During the year, ERA embraced togetherness for the successful
implementation of its mandate as the nature of work demands
the adoption of a cross-disciplinary approach.
1.5.3
Stakeholder sensitivity
The Authority in arriving at its decisions endeavours to strike

a balance and recognizes the interests, expectations and
aspirations of various stakeholders in the Electricity Supply
Industry. The Authority therefore sought to identify, understand
and respond to the legitimate interests and concerns of its
stakeholders as the basis for sustaining mutually beneficial and
respectable operational relations.
1.5.4 Equity and Fairness
These are important values that are demonstrated in ERAs human

resource policies and practices as well as in her interaction with
external stakeholders. ERA is an equal opportunity employer
that firmly believes in attracting and retaining highly competent,
productive and motivated personnel at all levels in the
organization.
1.5.5 Sustainability
ERA has maintained awareness of the need to remain

sustainable when executing its mandate. The budgeting for ERA
ensures that sufficient levels of revenue are attained to meet its
operational and development needs while remaining sensitive
to its stakeholders. The Authority and top management enable
sustainability through high levels of institutional leadership.
1.6 Principal Place of Business and Registered

Address
Electricity Regulatory Authority
ERA House
Plot 15, Shimoni Road, Nakasero
P.O. Box 10332, Kampala, Uganda
Telephone: +256 414 341 646, +256 757 341 646, +256 312 260 166
Email: info@era.or.ug; Website: www.era.or.ug
1.7 Bankers
Stanbic Bank Uganda Limited
Corporate Branch, Crested Towers
P.O. Box 7131, Kampala - Uganda
Standard Chartered Bank Uganda Limited
Plot 5, Speke Road
Citibank Limited
Center Court, Ternan Avenue
Dr. Benon M. Mutambi, the Chief Executive Officer of ERA hands over an
assortment of paint to an administrator at Kilembe Mines Hospital, as part
of the Authoritys Corporate Social Responsibility.
15
2.0 INTRODUCTION
2.1 Introduction
2.2 Organization of the Annual Report
This Annual Report gives an account of the programs and

activities undertaken by the Electricity Regulatory Authority (ERA)
in the Financial Year (FY) 2013/14. ERAs efforts in the review
period were directed to maintaining sustainability of the ESI, and
monitoring and enforcing compliance with the Electricity Act
and the terms and conditions in the licenses issued to licensees.
In the bid to meet the growing demand for electricity, ERA strived
to enhance regulatory practices and procedures that facilitated
the licensed entities to progress from project feasibility study
stage to implementation stage.
This Annual Report comprises nine (9) chapters.
The programs and activities implemented by the Authority were

aimed at fulfilment of ERAs six (6) strategic objectives as set out in
the Business plan for the FY 2013/14. These strategic objectives are:(i) To enhance and manage a regulatory framework that provides
incentives for efficient generation and delivery of quality
electricity to consumers at equitable prices;
Chapter Four (4) focuses on the performance of the Electricity

Supply Industry.
(ii) To provide incentive-based regulation that enables/stimulates

adequate investment, growth and coverage in the network;
(iii) To be a source of comprehensive information on the Electricity
Industry;
(iv) To provide a conducive work environment that attracts
and retains high calibre competent human resource in a
competitive labour market;
(v) To ensure ERAs sustainability; and,
(vi) To promote and foster regional cooperation in electricity
regulatory matters.
16
Chapter One (1) presents a profile of ERA, including its mandate,

functions, Vision, Mission, and Core Values.
In Chapter Two (2), an introduction to the report is provided,
highlighting the Authoritys key strategic and focus areas during
the FY 2013/14.
Chapter Three (3) presents issues relating to ERAs Corporate
Governance, which supported the execution of the Authoritys
mandate in the review period.
In Chapter Five (5), an account of the Authoritys compliance

initiatives during the review period is given.
Chapter Six (6) gives an account of how the Authority integrated
environmental aspects in the performance of its role in the FY
2013/14.
Chapter Seven (7) presents partnerships and stakeholder
engagements executed by ERA during the review period.
Chapter Eight (8) highlights the developments in the Authoritys
Human Resources and Administrative function during the FY
2013/14.
Chapter Nine (9) contains ERAs Financial Statements for the FY
2013/14.
3.0 CORPORATE GOVERNANCE
3.1 Corporate Governance Statement

In conducting its activities, ERA remained committed to
international best practice and upholding the highest standards
of corporate governance during the review period.
The Authority played a stewardship role and created a
conducive regulatory environment for the development of the
ESI in Uganda. The Authority was comprised of five members with
impeccable moral character, proven integrity and competence.
Four independent Committees, namely the Audit Committee,
the Human Resources Committee, the Grid Code Committee,
and the Installation Permits Committee supported the Authority in
fulfilling its corporate governance and functional responsibilities.
The decisions of the Authority were regularly published on its
website to enhance transparency and accountability.
for only another five-year term. In 2013/14, the Authority was

chaired by Mr. Richard Santo Apire and the other members were
Dr. Muhammad Serunjogi, Eng. Fabian Tibeita, and Mrs. Lydia
Kiriire Opuru. The five-year tenure of the fifth member, Mrs. Fatmah
Nsereko, expired on 14th May 2013. The Authority composition
presented a diverse set of skills, qualifications and experience
including Law, Engineering, Administration and Finance that
were vital in undertaking its functions, guided by the Electricity
Act.
3.3 Authority Committees
During the FY 2013/14, the Authority remained an active

member of the Institute of Corporate Governance of Uganda
(ICGU), which fostered the execution of its mandate in line with
best practices. It is worth mentioning that for the period under
review, the Auditor General gave an unqualified opinion on the
Authoritys Financial Statements.
Section 14 of the Electricity Act, 1999 provides for appointment

of one or more special committees of the Authority to assist
in discharging its operational functions. Currently, there are
two committees, composed of non-executive members,
assisting the Authority in discharging its functions. These are
the Human Resources Committee and Audit Committee. Two
other committees namely, the Grid Code Committee and the
Installation Permits Committee, are chaired by an executive
member and assist the Authority in executing its functional
obligations in the sector. These Committees operate within terms
of reference as laid down by the Authority.
3.2 The Authority
a)
The Authority consists of five non-executive members appointed

by the Minister of Energy and Mineral Development, with the
approval of Cabinet. The Chief Executive Officer (CEO) is an Exofficio member of the Authority. Members of the Authority hold
office for a term of five years and are eligible for re-appointment
The Audit Committee has two members who are independent

non-executive members of the Authority. It is chaired by Dr.
Muhammad Serunjogi assisted by Mrs. Lydia Kiriire Opuru. The
Committee meets at least quarterly and as may be required
to assist the Authority in fulfilling its corporate governance
Audit Committee
17
Corporate Governance
responsibilities in regard to:(i)
The integrity of ERAs financial reporting;
(ii) Compliance with legal and regulatory obligations;

(iii) Effectiveness of ERAs risk management and internal control
framework; and,
(iv) Oversight and independence of the external auditor.
b)
Human Resources Committee
The Human Resources Committee has two members who are

independent non - executive members of the Authority. It is
chaired by Eng. Fabian Tibeita. The Committee meets as required
to assist the Authority in fulfilling its corporate governance
responsibilities in regard to governance, shaping of the human
resource strategy, guiding on organizational structure and
appropriate policy framework, including welfare of ERA staff.
c)
Grid Code Committee
The Grid Code Committee is chaired by the Director of the

Technical Regulation Department, and is composed of
representatives of the system operator, generators, distributors,
special interest groups and the Uganda Institution of Professional
Engineers. The Committee meets to assist the Authority in fulfilling
its functional responsibilities with regard to the Electricity Primary
Grid Code. The terms of reference of this Committee are to:
(i)
Regularly review the Grid Code;
(ii) Review all suggestions for amendments to the Grid Code,

which are subsequently submitted to licensees;
18
(iii) Submit to ERA recommendations on amendments to the

Grid Code;
(iv) Issue guidance on the interpretation, implementation and
performance of the Grid Code; and,
(v) Consider desirable or necessary changes to the Grid Code.
d)
Installation Permits Committee
The Installation Permits Committee was established in

accordance with the provisions of the Electricity (Installation)
Permits Regulations, 2003. It comprises of six members, two of
whom are ERA employees and four of whom represent sector
stakeholders. The Committee is chaired by the Director of
the Technical Regulation Department and meets to assist the
Authority in fulfilling its functional responsibilities in regard to the
supervision of electrical installations. The Committees mandate
is to issue and revoke Installation Permits, and to discipline errant
holders of Installation Permits.
3.4 Meetings of the Authority

The Authority discharges its business through meetings held at
least once every month as provided for under the first schedule
to the Electricity Act, 1999. As need arises, the Authority may hold
special meetings upon a request in writing to the Chairperson by
at least three members of the Authority.
In the period under review, the Authority held 12 (twelve)
meetings and eight (8) Authority Committee meetings. The
Installation Permits Committee held 21 meetings, while the Grid
Code Committee held two (2) meetings.
3.5 ERA Secretariat

In executing its mandate, the Authority is supported by a Secretariat
that provides technical recommendations to the Authority on
matters relating to its statutory functions. The ERA Secretariat is
headed by the Chief Executive Officer (CEO), who is an ex-officio
member of the Authority. The CEO who is the Accounting Officer
is responsible for the day-to-day management of the affairs of
the Secretariat and implementation of decisions of the Authority.
The Secretariat has five departments, namely:-
3.5.1
Legal and Authority Affairs Department
The Legal and Authority Affairs Department is charged with

provision of legal advice to the Authority, ensuring legal
compliance of Licensees and coordination of licensing of
wiremen. The Department is also the custodian of all statutory/
regulatory information and reports, and is in charge of the ERA
Resource Centre.
3.5.2
Technical Regulation Department
The tasks of the Technical Regulation Department include, but

are not limited to the following:a) Provision of support to the development and
implementation of policies and strategies for the
regulation of electricity generation, transmission and
distribution;
b)
Ensuring quality of electricity supply;
c)
Evaluation of Permit and License applications and

feasibility study reports;
d) Monitoring Licensees compliance to technical

aspects; and,
e)
3.5.3
Provision of technical support to the ERA dispute

resolution processes.
Economic Regulation Department
The Economic Regulation Department is charged with

determination of tariffs and other charges for the generation,
transmission and distribution of electricity, compilation of sector
statistics and preparation of sector performance reports. In
addition to these, the Department is charged with research and
planning for the sector.
3.5.4
Financial and Administrative Services Department
The mandate of this Department is to manage the financial and

human resource functions of ERA, analyze Licensees financial
performance and budgets and carry out financial audits of
Licensees investments. In addition to these, the Department is
responsible for managing ERAs tangible and intangible assets as
well as the Information Technology (IT) infrastructure.
3.5.5
The Chief Executive Office
This Office is responsible for managing the communication,

strategic and business planning, and procurement functions
of the Authority. Its role includes performance monitoring and
evaluation, preparation of annual reports, regional co-operation,
stakeholder engagement and resolution of consumer complaints.
19
Corporate Governance
During this reporting period, the Authority restructured the

organization in light of the changing regulatory environment,
increasing demands of the ESI, and the need to improve the
Authoritys effectiveness and efficiency in executing its mandate.
The major outcomes of the restructuring include the following:
(i) The introduction of a six-level hierarchical structure comprised
of the Chief Executive Officer, Directors, Managers, Officers,
Technical Assistants, and General Assistants;
(ii) The incorporation of promotional levels in the salary grading
structure to allow for career growth;
(iii) A strategy to increase the staff complement to 59 by the year
2017;
(iv) Revision of the salary structure to favorably position ERA in
the labour market, more so the ESI where similar skills may be
competed for; and,
(v) Development of a Compensation Strategy to foster staff
motivation.
Staff of the Chief Executive Office feature on talk shows on

Kingdom FM and Star TV.
20
4.0 ELECTRICITY INDUSTRY PERFORMANCE
4.1 Generation
During the FY 2013/14, the installed generation capacity of
Uganda increased with the commissioning of an additional 20
MW from bagasse co-generation by Kakira Sugar Limited. In this
reporting period, the licensed generation capacity increased to
855.0 MW from 835.0 MW in FY 2012/13. Of this generation capacity,
73.7% was from large hydropower plants, 7.7% from mini-hydro
power plants, 11.7% from thermal plants and 7.0% from bagasse
cogeneration power plants. By the end of the FY 2013/14, a total
of 3,177 GWh of energy had been generated and supplied within
the Electricity Supply Industry. This represents a 4.8% increase in
the energy supplied in comparison to the previous Financial Year.
A small portion (1.3%) of the energy supplied was imported from
Kenya mainly for purposes of system balancing. The available
generation capacity fully met the demand as detailed in Table 1.
Western Kenya that constrained power evacuation from central

to Western Kenya, calling for reliance on imports from Uganda.
In the period under review, Tanzania Electric Supply Company
Limited (TANESCO) was the second largest export destination
of up to 55 GWh of Ugandas electric power. Power exports to
Rwanda Energy Group (REG) and Socit nationale dlectricit
(SNEL) of the Democratic Republic of Congo remained low at
less than 3 GWh per utility.
Much as the thermal generation capacity in the country was

11.7% of the total licensed grid capacity, its contribution to the
total energy supply was 0.8% during this reporting period. Thermal
plants are maintained in the supply system to provide standby
generation capacity.
Power Export
During this reporting period, the ESI realized an increase in power
trade with neighboring countries. Notably, UETCL sold twice more
energy (83 GWh) to Kenya Power and Lighting Company (KPLC)
compared to the FY 2012/13. The increased power sales in FY
2013/14 were due to transmission network rehabilitation works by
the Kenya Electricity Transmission Company Limited (KETRACO) in
The 50 MW co-generation plant at Kakira.
21
Electricity Industry Performance
Table 1: Energy generated by each licensed power plant during the FY 2012/13 and FY 2013/14
Power Plant
Licensed
Capacity (MW)
Technology
Energy Generated (MWh)

2012/13
1,214,149
2013/14
1,226,787
% of 2013/14
energy Supply
Nalubaale/Kiira Power Plants

Eskom
Kasese Cobalt Company Ltd
Kilembe Mines Limited - Tibet Hima
Tronder Power Bugoye
Africa EMS Mpanga
Hydromax Buseruka
Eco Power Ishasha
Nyagak 1
380.0
Hydro
250.0
10.5
5.0
13.0
18.0
9.0
6.5
3.5
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
Hydro
1,339,591
2,818
21,444
78,733
102,113
7,735
31,596
1,372,602
45,183
16,206
70,889
75,157
20,413
22,429
44.3%
1.5%
0.5%
2.3%
2.4%
0.7%
0.7%
0.0%
Kinyara Sugar Works

Kakira Sugar Limited
Jacobsen Namanve
Electro-Maxx
Total Local Generation
KPLC
7.5
52.0
50.0
50.0
855.0
Bagasse
Bagasse
HFO
HFO
7,981
92,735
32,453
34,669
2,966,017
30,369
8,209
161,672
20,692
56,299
3,096,538
37,248
0.3%
5.2%
0.7%
1.8%
100.0%
Rwanda Energy Group
3,013
3,321
Total imports
33,382
40,569
Total Supply
3,032,781
3,177,676
22
39.6%
4.2 Transmission
Effective January 2014, the Electricity Regulatory Authority
approved a transition by Uganda Electricity Transmission
Company Limited to a Multi-year Tariff regime. The UETCL
performance parameters were set for a period of three calendar
years (2014-2016). The objective of establishing the Multi-year
tariff was to incentivize the company to operate efficiently and
benefit from a longer planning horizon.
During FY 2013/14, the Uganda Electricity Transmission Company
Limited prioritized improvement of quality and reliability of power
supply through investment in projects and initiatives aimed
at achieving high quality of power supply. In this year, UETCL
continued to plan for construction of evacuation lines for the
power plants under construction and positioning the company
for the East African regional electricity trade.
UETCL increased the transmission network length from 1,626 km in
FY 2012/13 to 1,757 km in FY 2013/14.
During the year under review, energy purchases by Uganda
Electricity Transmission Company Limited increased by 4.8% from
3,032 GWh in FY 2012/13 to 3,177 GWh in FY 2013/14, which was
attributed to increased energy demand. On the other hand, the
power purchase costs incurred by UETCL increased from UGX
453.84 billion in FY 2012/13 to UGX 628.27 billion in FY 2013/14.
The weighted average energy purchase tariff increased from
UGX158.8/KWh in FY 2012/13 to UGX 196.17/kWh in FY 2013/14.
The increase in the weighted average energy purchase tariff
was largely attributed to the depreciation of the Uganda Shilling
against the United States Dollar, thereby increasing the Uganda

shilling equivalent of the power purchase costs.
Pursuant to the Multi-year Tariff regime, the Electricity Regulatory
Authority set the transmission energy loss factor for the year 2014
at 3.6%. During the same period, the actual loss achieved by
UETCL was 3.26%, implying that the company operated efficiently
and exceeded the energy transmission loss target.
Similarly, in FY 2013/14, the energy sales by UETCL increased from
2,934 GWh in FY 2012/13 to 3,098 GWh. Umeme Limited purchased
93% of energy from UETCL, 5% was exported to Kenya, Rwanda
and Tanzania, while the rest was sold to the other distribution
companies.
4.3 Distribution
4.3.1
Umeme Limited
The energy sales by Umeme Limited increased by 17.5%, from

1,937 GWh in FY 2012/13 to 2,277 GWh in FY 2013/14. The increase
in energy sales by Umeme Limited was mainly on account of
increased demand for energy and energy loss reduction.
In 2014, Umeme Limited achieved an energy loss of 21.3%
against a target of 20% set for the same period. This represents
a 3% reduction from 24.3% in 2013. This reporting period saw
an increase in new customer connections of 76,108 as at 30th
June 2014 compared to 60,967 as at 30th June 2013, resulting
into a cumulated number of customers at 650,573 at the end
of the financial year. Umeme Limited continued to roll-out the
23
prepayment metering system, with all domestic new connections

being done using prepaid metering. By the end of FY 2013/14, a
total of 30,601 customers were connected to prepaid metering.
4.3.2
Other Distribution Licensees
Ferdsult Engineering Services Ltd continued its operations in

Kyenjojo and Katooke areas; Rakai; Kyotera; Bukakata and
Mutukula; Kibaale and Kagadi areas. All these were using
prepaid metering facilities which helped the consumers to plan
effectively and manage their consumption. Other distributors
included Bundibugyo Energy Cooperative Society (BECS) and
Pader/Abim Community Multipurpose Energy Cooperative
Society (PACMECS) which benefited from the Rural Electrification
Projects for grid extension and had prepaid metering facilities.
Kilembe Investment Ltd (KIL) continued to serve power users in the
areas of Kasese District, Rubirizi and the surrounding environment.
In addition to the card prepayment system, KIL introduced the
keypad prepayment system aimed at improving its service
delivery. West Nile Rural Electrification Company (WENRECO)
also commenced the installation of prepaid metering for its
customers.
In general, during the FY 2013/14, there was stability of supply in
the industry supported by increased generation. However, there
remains room for improvement on the side of quality of supply
and service by most distribution licensees.
24
4.4 Tariffs
In January 2014, ERA introduced the Quarterly Tariff Adjustment
(QTA) mechanism for tariff determination. With this mechanism,
ERA approves electricity end-user tariffs at the beginning of
each year. These are known as the base tariffs, which remain
unchanged throughout the year but are adjusted on a quarterly
basis to factor in changes in three macroeconomic factors,
namely: the inflation rate, the exchange rate and the international
fuel prices.
The three factors are specifically considered because they affect
the cost of generation, transmission and distribution of electricity,
which in turn affects the end-user tariff. As a result of shifts in the
aforementioned factors, the retail tariffs may increase or reduce
during a given billing period. The adjustment of the tariff to factor
in changes in the three macroeconomic factors is provided for in
the licenses of companies that operate in the electricity supply
industry. The QTA mechanism allows for transparency in the tariff
setting process, recovery of costs of production within the tariff,
and financial benefit to consumers during periods of favouable
movement of the macroeconomic factors.
4.5 Projects under Development

4.5.1
Licensed projects
In an effort to increase the generation capacity to meet the

growing energy needs of the country, ERA licensed eight (8)
projects with a combined capacity of 49.7 MW during the financial
year under review. The licenses issued will allow the companies to
construct power plants, generate and sell electricity to the national grid.
Table 2 shows the projects licensed during this reporting period.
No.
1.
2.
3.
4.
5.
6.
7.
8.
Company
Elgon Hydro Siti (Pvt) Limited
Elgon Hydro Siti (Pvt) Limited
Rwimi EP Company Limited
Greenewus Energy Africa Ltd
Lubilia Kawembe Hydro Limited
PH Industrial Farms (U) Ltd
Muvumbe Hydro (U) Limited
Hydromax (Nkusi) Limited
Location (District)
Bukwo
Bukwo
Kasese
Kasese
Kasese
Gulu
Kabale
Hoima and Buliisa
Technology
Hydro
Hydro
Hydro
Hydro
Hydro
Biomass
Hydro
Hydro
Capacity (MW)
5.0
16.5
5.5
5.0
5.4
1.0
6.5
4.8
Construction of these projects is expected to start in the first

quarter of 2015 and commissioning, in the second quarter of
2017. In comparison with the FY 2012/13, ERA registered an
increase in the number of licensed projects, bringing the total
number of projects under development in FY 2013/14 to 11, with
a combined capacity of 76.5 MW.
Resource Management (DWRM). The projects under feasibility

study cover diverse generation technologies, namely; Solar
Photovoltaic (99 MW), Hydro (73 MW), Natural Gas (50 MW)
and Wind (20 MW). The additional permits issued have brought
the total number of projects under feasibility study to 29, with a
combined capacity of 341 MW.
4.5.2
During the FY 2013/14, the Authority noted an increase in the

uptake of projects and applications for permits. The increase in
the number of licensed projects, permits issued and license and
permit applications received during this financial year was largely
attributed to the initiatives put in place by the Authority to attract
investments into the Electricity Supply Industry.
Projects under feasibility study
In addition to the licensed projects, ERA during the review period

issued 22 permits (with a combined capacity of 242 MW) to
Intending Developers to enable them undertake feasibility studies
and related activities, and to acquire the necessary consents
and approvals from institutions such as National Environment
Management Authority (NEMA) and the Directorate of Water
25
4.5.3 Initiatives to promote Private Investments in

generation
Government of Uganda and GET FiT secured the PRG facility

which covers the following risk-mitigating components:
ERA performed its functions as stipulated by the Electricity Act,

1999 with the goal of creating an enabling environment that
attracts private investment into the Electricity Supply Industry as
demonstrated by the increased uptake of power projects.
a) Provision of short-term liquidity support for the

benefit of UETCLs Power Purchase Agreement (PPA)
obligations;
b) Compensation for termination of events of
Government/utility default under the Power Purchase
Agreement/Implementation Agreement; and,
In pursuing the Authoritys goal of maintaining a favorable and

enabling environment, ERA put in place the following initiatives:
1. Development of standard Power Purchase Agreements
(PPAs), Implementation Agreements and model licenses
in consultation with Development Partners, Lenders and
project developers. This initiative was aimed at reducing
advisory service costs and the time required by project
developers to negotiate the first initialing of PPAs between
the developer and Uganda Electricity Transmission
Company Limited.
c) Commercial debt guarantee.
4.5.4
Global Energy Transfer for Feed-in-Tariff
ERA has continued to implement the Global Energy Transfer for

Feed-in-Tariff program since it was launched on 31st May 2013
with support from the Government of Uganda and KfW, which
represents the Development Partners.
2. ERA, through support from the Global Energy Transfer

for Feed-in-Tariff facility, embarked on the process of
streamlining its technical, environmental, financial and
economic project due diligence for the permit and license
application process. A consultant (Grontmij of Denmark)
who was procured to support ERA in undertaking this
exercise will ensure delivery of key outcomes namely;
standardized best practice procedures and application
templates; and, an efficient and holistic project appraisal
process.
The main purpose of the GET FiT Program was to fast-track

development of renewable energy generation projects of 1 MW
20 MW, promoted by private developers with a total installed
capacity of about 170 MW/830 GWh per annum. The Premium
Payments constitute a result-based incentive grant designed to
enhance the financial viability of the selected projects and are
payable as a top-up premium of US cents 0.5-2.0 per kilowatt
hour to the project developers in addition to the applicable
Renewable Energy Feed-in-Tariff (REFiT) determined by the
Authority.
3. Securing approval of the World Bank Partial Risk Guarantee

(PRG) equivalent to US$ 160 Million for the GET FiT program.
In March 2014, ERA through extensive dialogue with the
By the end of the financial year 2013/14, the GET FiT program
had approved 12 projects with a combined capacity of 103 MW.
26
Overall, GET FiT is expected to attract more than US$ 450 Million
of private investment into Uganda. The enabling environment
created for private investors by ERA resulted into Uganda being
ranked 10th out of 55 countries from Latin America, Africa and the
Caribbean by Bloomberg in regard to its investment climate for
clean energy investment.
Following the earlier success under the GET FiT program, a
reduction in solar-PV prices globally and relatively short lead-time
to commissioning, the European Union was convinced to offer a
grant of Euro 20 million to support solar energy development. In
January 2014, ERA launched a solar-PV Reverse Tender process
that targets to bring 20 MW of solar-PV generation onto the
national grid by the end of 2015. The tendering process which is
handled by a Tender Agent (Agut Energy Advisory Services) on
behalf of ERA will be concluded by the end of October 2014.
The implementation of the GET FiT program has been possible
due to the support of the United Kingdom (UK) Government
(through the Department for International Development DFID
and the Department of Energy and Climate Change - DECC), the
Kingdom of Norway, the Government of the Federal Republic of
Germany, and the European Union. These Development Partners
have collectively committed EUR 91 Million to GET FiT projects.
Additional support has been provided by the World Bank through
a Partial Risk Guarantee (PRG) facility for small-scale Renewable
Energy projects in Uganda.
4.5.5
Projects for cross border interconnections
Over this reporting period, ERA focused on improving the power

transmission infrastructure and regional interconnection. In the
same period, the national grid grew by 131km, bringing the
total length to 1757km. In an effort to increase the reliability
and availability of power supply to South Western and Western
Uganda, in February 2014, UETCL completed the upgrading of
84km of the 132kV transmission line from Mutundwe to Kabulasoke
with funding from the Government of Uganda.
UETCL continued the implementation of transmission projects
aimed at: evacuating electricity from planned generation plants;
strengthening the transmission infrastructure; and, allowing
regional interconnection. The status of these projects is provided
below.
4.5.5.1 Projects for Evacuating Power Plants

UETCL undertook the following projects that will evacuate
proposed power plants:
(i) The 378km 400kV Karuma interconnection project. The
feasibility study for this project was concluded; financing was
secured from China Exim Bank. Sino Hydro was contracted
to construct the transmission line for which commissioning is
expected in 2017. This line will evacuate the proposed 600
MW Karuma Hydropower plant;
(ii) The Isimba interconnection project for which financing has
been sourced from the China Exim Bank will evacuate the
proposed 183 MW Isimba Hydropower project. Construction
27
works by China CAMC Engineering Co. Limited, the contractor

on this project, are expected to be completed in 2016;
(iii) The 10km 400kV Ayago interconnection project, which is
currently under feasibility study and funded by China Exim
Bank will evacuate the proposed 680 MW Ayago Hydropower
plant; and,
(iv) UETCL has also initiated the implementation of transmission
line projects of 340km that will evacuate 83 MW in Gulu
District, 38 MW in Isingiro District, and 40 MW in the Mt. Elgon
region.
4.5.5.2 Regional Interconnections
To promote power trading and improve security of supply within

the region, UETCL is undertaking the following projects:
(i) Bujagali - Tororo (Uganda) - Lessos (Kenya) 220kV transmission
line of 127km length. The line is financed by AfDB and JICA

and is scheduled for completion in 2015 by Jyoti Limited and
Isolux, the procured Contractors. This line will interconnect
Uganda and Kenya;
(ii) Mbarara - Mirama (Uganda) - Birembo (Rwanda) 220kV
transmission line of 66km. This project is funded by JICA and

AfDB and is scheduled for completion in 2015 by Jyoti Limited,
the procured contractor. This line will interconnect Uganda
and Rwanda;
(iii) Masaka - Mutukula (Uganda) - Mwanza (Tanzania) 220kV

transmission line of 82km.
28
The project is currently under
feasibility study and will be funded by the East African

Community (EAC). This will interconnect Uganda and
Tanzania;
(iv) Karuma - Nimule (Uganda) - Juba (South Sudan) 400kV line
of 190km to Nimule. This will interconnect Uganda and South

Sudan. UETCL is currently sourcing financing for the project;
and
(v) Nkenda - Mpondwe (Uganda) - Beni (Democratic Republic of
Congo) 220kV of 72km. This project is under feasibility study,

funded by the Kingdom of Norway, and will interconnect
Uganda and the Democratic Republic of Congo. It will be
implemented through the regional umbrella bodies; the Nile
Equatorial Lakes Subsidiary Action Plan (NELSAP), EAC and
the East African Power Pool (EAPP).
4.5.5.3 Projects for Improving Reliability and Availability
In order to improve on the reliability and availability of the High

Voltage network, UETCL embarked on the following projects:
(i) The 160km 132kV Mbarara - Nkenda transmission line, funded
by AfDB and scheduled for commissioning in 2015 by Kalpatru

Limited, the procured contractor. The line will improve
reliability and availability of power in Western Uganda;
(ii) The 260km 132kV Tororo - Opuyo transmission line, funded by

AfDB and scheduled for commissioning in 2015. This line will
improve reliability and availability of power in Northern and
Eastern Uganda;
(iii) The 234km 220kV Nkenda - Fort Portal - Hoima transmission
line will increase transmission capacity and contribute to the

evacuation of power plants in Hoima District. Funding for this
project which will be commissioned in 2016 will be provided
by the Kingdom of Norway; and,
(iv) The 132kV 100km Opuyo - Moroto transmission line and
substation will extend power to the Karamoja region. The

project will be funded by the Islamic Development Bank and
is scheduled for commissioning in 2017.
4.6 Installation Permits

In line with Section 88 of the Electricity Act, 1999, ERA issued 141
new installation permits for persons/companies carrying out
electrical installations at the 240V to 132kV voltage levels. The
number of permits issued has steadily increased, standing at
986 by the end of the financial year 2013/14. This increase as
depicted in Figure 1 is attributed to ERAs sensitization drives to
the public and wiremen mainly through radio talk shows and
workshops. Sensitization of the public on the dangers of unsafe
use of electricity and the need to utilize certified wiremen has
greatly enhanced their awareness and utilization of the services
of the installation permit holders.
Figure 1: Installation permits issued by ERA by June 2014

Furthermore, Disciplinary Hearings were held to address
misconduct of certified wiremen. The action taken against these
included: cautioning, suspension or cancellation of the permits
where Permit holders were found to have made installations that
did not meet the acceptable wiring standards. As a result, 11
(eleven) permit holders and two (2) companies were cautioned
during the reporting period.
29
4.7 Consumer Protection and Complaints Resolution

Monitoring of complaints from consumers is one of the feedback
mechanisms that enable ERA to respond to consumer demands
and to ensure effective service delivery in the ESI. In resolving
complaints from consumers this financial year, the Authority
placed keen interest on:
i) Providing responsive, efficient and accountable management
of consumer complaints;
ii) Ensuring that the rights of consumers are not violated with
regard to quality of service;
iii) Educating consumers about their rights and obligations, and,
iv) Investigating complaints and related disputes.
The complaints that were handled by ERA in the FY 2013/14 related
to disconnections/reconnections, billing, metering, power theft,
power blackouts, supply interruptions, delayed service delivery
and trespassing/way leaves.
As illustrated in Table 3, out of the 314 complaints received by
ERA, 221 were resolved by the end of the Financial Year.
Table 3: Summary of Consumer Complaints handled by ERA
during FY 2013/14
Nature of complaints
Billing
Disconnection/
Reconnection
30
Number of
complaints
65
62
Resolved
40
55
Pending
Resolution
25
7
Nature of complaints
Black out/power
interruptions
Quality of Service
(rotten pole, faulty
transformer)
Power theft
Metering
Way leaves
Total
Number of
complaints
40
Resolved
33
Pending
Resolution
7
80
53
27
7
49
11
314
5
31
4
221
2
18
7
93
Electricity Regulatory Authority received complaints from all the

regions of Uganda and from the different utility service territories
in the Central region (Kampala, Entebbe, Masaka, Lyantonde);
Eastern Region (Jinja, Iganga, Mbale, Tororo, Pallisa and Busia);
Northern Region (Gulu and Lira); West Nile Region (Arua, Nebbi);
Western (Kabale, Kisoro, Mbarara, Bushenyi, Kasese and Fort
Portal).
The complaints were logged through telephone calls, written
letters, visits to the Authority, the ERA website, the ERA Facebook
page, and Electricity Consumer Committees. The Electricity
Consumer Committees (ECCs) continued to serve as a link
between the Regulator and the electricity consumers by getting
unresolved complaints communicated to the utility providers for
resolution. In 2013/14, the Authority restructured its complaints
handling system, which saw the operations of the ECCs phased
out. Going forward, the Authority will focus on popularizing ERAs
Contact Centre in order to receive and address consumers
concerns.
5.0 COMPLIANCE OF LICENSEES
In order to ensure continued improvement in the efficiency of

the Electricity Industry Supply, ERA through the issued License
instruments ensured that on a quarterly basis, distribution
companies reported on the key performance indicators that
included among others: outages, annual operation plans, plant
availability and compliance to the environmental conditions
prescribed by the National Environment Management Authority.
the development of Quality of Service standards and Key

Performance Indicators, which will be used to measure
performance of distribution companies relating to: access
to supply, billing, disconnection, call centre management,
complaints handling, metering, reliability, and system and
customer interruption indices. The process of developing
these standards is expected to be completed within the
financial year 2014/15.
The assessment of the level of compliance of the seven (7)

operating distribution companies and twelve (12) power
generation companies was enhanced by inspections conducted
by ERA. In this regard, each distribution and generation company
was inspected at least once during the reporting period.
The performance of the distribution companies during this
financial year was observed as follows:a) Outages: There was a decline in the number of faults
experienced on the distribution networks, albeit the
number remains high. ERA recognizes this and has
approved investments targeted at improving the status of
the distribution networks.
b) Quality of Supply: Distribution companies need to
improve on the quality of supply, specifically the power
factor, following the observation that all companies were
operating below the required 0.9 power factor.
c) Quality of Service: Following the inspections and offsite
reviews conducted during this financial year, ERA
prioritized the need to improve the Quality of Service (QoS)
within the ESI. In this regard, the Authority embarked on
ERA staff conduct verification of meters for Kilembe Investments Limited.
31
6.0 ENVIRONMENTAL CONSIDERATIONS IN LICENSING

AND OPERATION OF ELECTRICAL INSTALLATIONS
The Authority considered Environmental aspects in the licensing
and operation of electrical installations in two phases as follows:-
6.1 Prior to award of license

a) For the 22 permits granted by the Authority, the
permit applications were screened to determine their
environmental soundness before award of permits. During
the feasibility studies, ERA provided written comments on
the Environmental and Social Impact Assessment reports
prepared by feasibility study Permit Holders;
b) The process of evaluating the license applications for
the eight (8) licenses granted included the review of
Environmental and Social Impact Assessment reports
received from National Environment Management
Authority and directly from permit holders. The
environmental obligations of the project developers were
streamlined into the licenses issued by ERA to ensure
proper and timely monitoring.
6.2 Environmental compliance monitoring post

award of License
In order to ensure that the licensed projects complied with
the environmental obligations, compliance monitoring was
conducted in two ways namely; offsite, which entailed analyzing
reports submitted by the licensees on a quarterly basis and onsite
statutory inspections conducted to verify the level of compliance
reported by the licensees. In this regard:a) The Authority reviewed quarterly monitoring reports and/
or environmental audit report(s) received from licensees,
32
which formed the basis for statutory inspection(s). The

majority of the licensees complied with the submission of
the monitoring reports to ERA.
b) All licensees were inspected at least once in the reporting
period to verify information submitted in the environmental
monitoring reports and ascertain the level of compliance.
Feedback was provided to the licensees, most of whom
were implementing mitigation measures outlined in the
NEMA certificate of approval.
6.3 Collaborations
In recognizing the important role played by key agencies in the
functioning of the Electricity Supply Industry, ERA continued to
strengthen its relationships with NEMA and DWRM, among other
institutions. In this regard, the Authority initiated the process of
executing Memoranda of Understanding with both agencies.
The cooperation with these Government agencies contributed
towards improving the investment climate through easing
transaction of business for private investors intending to develop
power projects in Uganda.
In this financial year, Electricity Regulatory Authority signed a
Memorandum of Understanding with the Uganda National
Bureau of Standards (UNBS) to promote cooperation on the
enforcement of electrical equipment standards in Uganda.
7.0 EXTERNALLY FOCUSED RESPONSIBILITIES
7.1 International Coordination and Partnerships

In the financial year 2013/14, ERA continued to be involved in a
number of continental, regional and national regulatory activities
which are essential to the development of effective utility
regulation through facilitating the harmonization of regulatory
policies, exchange of information and capacity building.
ERA maintained membership of the African Forum for Utility
Regulators (AFUR), the Energy Regulators Association of East
Africa (EREA), the Independent Regulatory Board under the EAPP
umbrella, and the Regional Association of Energy Regulators
of Eastern and Southern Africa (RAERESA) under the COMESA
umbrella. In an effort to harmonize regulatory policies, processes
and standards, ERA actively participated in the activities of these
bodies, including the 11th AFUR Annual Conference and Annual
General Assembly in May 2015 in Nairobi Kenya and the EREA
Meetings in December 2013 in Dar es Salaam, Tanzania.
7.2 Sector Stakeholder Engagement, Education and

Sensitization
Stakeholder Engagement, Education and Awareness is a key
vehicle for the execution of ERAs mandate. Not only does
stakeholder engagement and education communicate our
regulatory role, it also bolsters our efforts towards greater
efficiency and effective regulation.
In the Financial Year 2013/14, ERA continued to engage, educate
and sensitize its stakeholders through combined efforts to increase
efficiency and service delivery. A range of fora were used to
engage stakeholders including targeted regional workshops with

District leaders and security personnel from the Greater Mbale
Region, the Greater Mbarara Region and Northern Uganda.
These workshops were aimed at sensitizing Local Government
stakeholders on the status of the electricity sector and key issues
that required the involvement of Local Government officials.
Electricity Regulatory Authority held several public consultations
in respect of various applications for licenses for the generation
and sale of electricity. ERA held public consultations, awareness
and educational meetings in the following locations:-
7.2.1
Public Hearings
a) Rugendabara Town board at Kitswamba Pentecostal

Church (Kasese District) on ECO Power Holdings
Application for a License to generate 9.6 MW from River
Rwimi;
b) Kamunjani Primary School (Bukwo District) on Elgon Hydro
Siti (PVT) Ltds Application for a License to generate a
combined estimated capacity of 21.5 MW from Rivers Siti
and Nyalit;
c) Kitswamba Parish, Bweisumbu Sub-County (Kasese District)
on Greenewus Energy Limiteds Application for a License
to generate 5.0 MW from River Rwimi;
d) Ihandiro Sub-County (Kasese District) on Lubilia Kawembe
Ltds Application for a License to generate 5.4 MW from
River Lubilia;
33
Externally Focused Responsibilities
e) Maziba Sub-County (Kabale district) on Muvumbe Hydro

(U) Ltds Application for a License to generate 6.5 MW
from River Muvumbe;
f) Agangura Sub-County (Pader District) on ARPE Ltds
Application for a License to generate a combined 83 MW
from Rivers Achwa and Agago;
g) Busiisi Sub-County (Hoima District) on Albatros Energy (U)
Ltds Application for a License to generate 50 MW from
Heavy Fuel Oil;
h) Kapapi Primary School in Kigorobya Sub-county, (Hoima
District) on Hydromaxx (Nkusi) Ltds Application for a
License to generate 4.8 MW from River Waki; and,
i) Gulu town, on PH Industrial Farms (U) Ltds Application for
a Licensee to generate 1 MW using biomass technology.
7.2.2 Public Consultations

In respect of applications for distribution of power, ERA held
public consultations and awareness and education meetings in
West Nile (Adjumani District), Northern Uganda (Dokolo District),
North Eastern Uganda (Moroto District), Eastern Uganda (Mayuge
District), and Western Uganda (Kamwenge District) in respect
of an application by Uganda Electricity Distribution Company
Limited (UEDCL) for a license to supply and distribute power in
the newly created service territories in the mentioned areas.
Electricity Regulatory Authority also held an awareness tour for
Members of Parliament to the Kirchner Solar village in Luwero
District to appreciate the proposal by Kirchner Solar Ltd to build
34
community solar containers and distribute power in rural areas.

The Authority also consulted Local Government leaders of the
following districts in line with Kirchner Solars proposed solar sites:
Bugiri, Mityana, Bundibugyo, Rubirizi, Kabale, Arua, Nwoya,
Alebtong, Kyenjojo, Namayingo, Buyende, Rakai, and Nebbi
Distiricts.
With focus on promoting consumer awareness and education,
ERA participated in the following public events:
i) The 5th Western Regional Trade Fair organized by Uganda
Manufacturers Association in Mbarara Town
ii) The Joint Sector Review Conference organized by the
Ministry of Energy and Mineral Development in Kampala
iii) The Investors Expo - organized by Ministry of Finance,
Planning and Economic Development in partnership with
Uganda Investment Authority
iv) The Kingdom Business trade fair organized by the Church
of Uganda
v) The annual Energy Efficiency Week organized by the
Ministry of Energy and Mineral Development
Throughout the year, the Electricity Regulatory Authority furthered
consumer awareness and education through the media by
hosting press briefings at ERA House and appearing on over ten
(10) radio talk shows across the country to discuss pertinent issues
in the Electricity Supply Industry.
Furthermore, the Authority hosted the inaugural Sector

Compliance and Monitoring workshop for licensees from
the Generation, Transmission and Distribution segments. The
workshop aimed at aligning the activities of the sector players
with ERAs mandate to ensure that electricity supply is adequate,
safe, reliable and affordable. This interaction helped licensees to
refresh themselves on the Legislative Framework for Compliance
Monitoring and Enforcement, the importance of Regulatory
Reporting, Technical Compliance with the Law and License
conditions, and Environmental Requirements for Electrical
Infrastructure.
7.2.3
Corporate Social Responsibility
In August 2013, ERA handed over an assortment of paint worth

UGX 13 Million to Kilembe Mines Hospital as a Corporate Social
Investment (CSI) initiative, following heavy rains and floods that
devastated the hospital and other parts of Kasese District earlier
in May 2013. The assortment donated by ERA was used to paint
seven wards, namely: Maternity ward, Medical ward, Family
ward, Part of F&G ward, Part of A-C ward, Laundry Department
and the walk-way path poles.
Community members raise their hands in support of the Waki electricity

project in Hoima District during a Public Hearing.
35
8.0 HUMAN RESOURCE AND ADMINISTRATION
ERA considers its Human Resources as the greatest asset that aids
delivery on the Authoritys strategic objectives. ERA cherishes
and promotes the key values of professionalism, team work,
innovation and stakeholder sensitivity as critical attributes that
must be exhibited at all staffing levels. In this regard, ERA prioritizes
the attraction, motivation and retention of highly skilled human
resources to deliver on its strategic objectives.
8.1 Staffing Levels by Department

In the FY 2013/14, the ERA Secretariat had 45 staff as shown in the
Table.
Serial No.
1
2
Department
Chief Executive Office
Financial and
Administrative Services
Economic Regulation
Technical Regulation
Legal and Authority Affairs
Total
3
4
5
No of staff
12
17
4
7
5
45
Recruitment
In the course of the year, four (4) staff were recruited, namely the
Senior Consumer Affairs Officer (Advocacy), Accounts Assistant
(Expenditure), Transport Facilitator and Library and Information
Services Assistant.
Promotion
In order to keep staff motivated, to grow internal capacity of
staff and to reward excellent performance, four (4) staff were
promoted to Managerial positions, while one Senior Officer was
promoted to Principal Officer position. In total, five (5) staff were
promoted.
Staff Turnover
During this period, one staff, the Economist Pricing, left the
organization, representing a turnover rate of 2% in the year.
8.2 Training and Development

Continuous capacity building is a priority for ERA in order to keep
its human resources up-to-date with key regulatory skills and
knowledge in various areas of specialty. During this period, ERA
sponsored 30 staff to attend short-term trainings and seven (7)
staff were supported to undertake long-term training.
The trainings undertaken on a short term basis include among
others;
a) Regulating Quality of Service: Planning, Compliance,
Monitoring and Enforcement;
b) Environmental and Social Monitoring of projects;
c) Developing and Negotiating Power Purchase Agreements;
d) Benchmarking infrastructure Operations and Advanced
Energy Pricing;
e) Managing contracts monitoring and evaluating
procurement performance;
36
f) Planning Procurement, Designing and Evaluating tenders

and managing contracts;
g) Customer Service;
h) Strategic planning;
i) Measuring and Assessing Value for Money for Public
Investments in Infrastructure;
j) Human resource management with certification;
Employee Wellness
ERA recognizes the need for a healthy and fit workforce and as
such a team building retreat was organized to facilitate bonding,
reflection and re-energizing among staff.
Further to this, ERA subscribed to various health clubs where
staff were facilitated to engage in recreational activities such
as aerobics, gymnastics, swimming and massage so as to keep
healthy.
k) Project Finance; and,

l) Facilities Management.
The long-term trainings supported by the Authority during this
year include the following:
i) Masters of Development Finance (three staff)
ii) Masters in Management Science (one staff)
iii) Masters in Electrical Engineering (one staff)
iv) Masters of Business Administration (two staff)
v) Post Graduate Diploma in Human Resource Management
(one staff)
vi) Masters of Science in Power Systems (one staff)
A nurse from the Wellcare clinic draws a blood sample from Mr. Sam
Lugolole of ERA during an awareness clinic for staff.
37
9.0 ANNUAL FINANCIAL STATEMENTS
9.1 Statement of Authority Members (Directors)

responsibilities
The Electricity Act 1999, Cap 145 Section 28 (1) requires the
Authority to keep proper books of account for each financial year.
These should give a true and fair view of its financial position at
the year-end, results of performance (income and expenditure)
and cash flows.
The Members of the Authority accept responsibility for the
financial statements set out from pages 38-53, which have been
prepared in accordance with appropriate accounting policies,
supported by reasonable and prudent judgments and estimates
in conformity with International Financial Reporting Standards
and the Electricity Act 1999, Cap 145.
For the year ending June 30, 2014, Members are of the opinion that
the financial statements give a true and fair view of the financial
position and results of the Electricity Regulatory Authority. The
Members accept responsibility for the maintenance of accounting
records that form a reasonable basis for the preparation of the
financial statements, as well as adequate systems of internal
financial control.
Nothing has come to the attention of the Members to indicate
that ERA will not remain a going concern for the foreseeable
future from the date of this statement.

CHAIRMAN SECRETARY
38
9.2 Auditor Generals Opinion

In my opinion,
1. The financial statements present fairly in all material
respects, the financial position of Electricity Regulatory
Authority as at June 30th, 2014 and the results of its financial
performance and its cash flows for the year then ended
in accordance with International Financial Reporting
Standards.
2. The expenditure and receipts have been applied in all
material respects for the intended purpose.
Report on other Legal Requirements

As required by the Electricity Act 1999, I report to you based on
the audit that:
i. Sufficient and appropriate evidence which was necessary
for the purposes of the audit was obtained;
ii. Proper books of account have been kept by the Authority,
so far as appears from the examination of those books;
and,
iii. The Authoritys financial statements are in agreement with
the books of account.
KAMPALA
9.3 Statement of Financial Position

STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2014
ASSETS
Non-Current Assets
Non-Current Assets
Current Assets
Cash and Bank balances
Prepayments and Advances
Receivables
Current Liabilities
Payables
Deferred Income
Payroll & Gratuity Accruals
Net Current Assets (Liabilities)
NET ASSETS
EQUITY AND RESERVES
Government of Uganda Equity
General Reserves
Revaluation Reserves
Operating (Deficit)/Surplus
TOTAL EQUITY AND RESERVES
2013-14
Ushs
2012-2013
Ushs
3,458,638,370
3,330,797,709
2
3
4
1,239,700,824
1,231,835,530
1,364,242,434
3,835,778,788
1,790,830,330
984,399,330
1,023,563,421
3,798,793,081
5
6
8
839,335,625
2,502,618,701
1,397,253,025
(4,739,207,350)
(903,428,562)
2,555,209,808
1,316,060,775
1,718,744,180
665,185,724
(3,699,990,679)
98,802,402
3,429,600,111
280,000,000
1,642,674,831
632,534,977
280,000,000
2,517,065,134
632,534,977
2,555,209,808
3,429,600,111
18
39
Annual Financial Statements
9.4 Statement of Comprehensive income

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED JUNE 30, 2014
Notes
REVENUE
Licence fees
Levy Charges
Application Fees
Installation Licenses
Rental Income
Other Income
REVENUE
OPERATING EXPENSES
Personnel Expenses
Board Expenses
General Administration
Promotion and Advertisements
Training, Workshops and Conferences
Monitoring and Compliance
Consultancy fees
Stakeholder Programmes
Depreciation
Total Operating Expenses
Operating Surplus
Currency Translation loss
Comprehensive Surplus/(Deficit) for the year
40
11
9
15
14
10
13
12
17
1
2013-14
Ushs
2012-13
Ushs
5,670,669,694
2,983,462,100
99,928,076
479,922,980
48,000,000
39,981,823
9,321,964,674
5,646,635,681
2,780,856,289
79,586,212
209,338,519
48,000,000
11,306,509
8,775,723,210
(5,691,189,171)
(190,333,794)
(802,377,093)
(154,299,829)
(1,390,414,320)
(157,958,842)
(237,836,142)
(631,941,288)
(291,149,965)
(9,547,500,444)
(225,535,771)
(52,516,827)
(4,526,342,695)
(201,270,300)
(802,959,614)
(101,154,228)
(1,392,912,063)
(77,249,514)
(597,111,769)
(583,213,736)
(258,226,389)
(8,540,440,308)
235,282,902
(12,122,361)
(278,052,598)
223,160,541
9.5 Statement of Cash flows

STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED JUNE 30, 2014
Cash flows from Operating activities

(Deficit)/Surplus for the period
Add: Adjustment on Reserves
Add: Adjustment on Revaluations and Disposals
Add: Depreciation
Add: Proceeds from sale of Motor Vehicles
Changes in Working capital
Movement in prepayments and advances
Increase in Accrued Income
Movement in Receivables
Movement in Payables
Movement in Project advances Movement in Deferred Income
Increase in Payroll and Gratuity Accruals
Net Movement in working capital
Net Cash inflows from operating activities
Cash flows from Investing Activities
Proceeds from Sale of Motor Vehicles Purchase of fixed assets
NET CASH FLOW
Cash and Cash Equivalents at beginning of the year
Cash and cash equivalents at end of period
CASH AND CASH BALANCE AS AT JUNE 30, 2014
18
1
2013-14
Ushs
2012-13
Ushs
(278,052,598)
223,160,272
(596,337,705)
291,149,966
(92,093,268)
(55,003,041)
258,226,389
334,290,352
(583,240,337)
(247,436,200)
(340,679,013)
(476,725,151)
(31,078,816)
(228,599,745)
432,714,701
783,874,521
732,067,301
451,101,458
(132,138,878)
(484,791,748)
(284,645,189)
(596,400,797)
(262,110,445)
(418,990,628)
(551,129,506)
1,790,830,330
1,239,700,824
1,239,700,824
(489,045,350)
(751,155,795)
2,541,986,125
1,790,830,330
1,790,830,330
41
9.6 Statement of Equity

STATEMENT OF CHANGES IN EQUITYAS AT JUNE 30, 2014
Notes
Balance at July 01, 2013
Prior year adjustments
Realised surplus during the
period
Balance at June 30, 2014
Government
Equity
Ushs
280,000,000
-
General
Reserves
Ushs
2,517,065,134
(596,337,705)
(278,052,598)
Revaluation
Reserve
Ushs
632,534,977
(596,337,705)
280,000,000
1,642,674,831
632,534,977
Total
Ushs
3,429,600,111
(278,052,598)
2,555,209,808
9.7 Accounting Policies and Notes to the Annual Financial Statement

a) Basis of Preparation
The Financial Statements have been prepared in accordance with International Financial Reporting Standards
(IFRSs) and other relevant policies adopted by the Authority and disclosed herein in the wider scope of the GAAP
framework.
b) Cost Convention
The financial statements have been prepared using the historical cost convention.
c) Revenue Recognition
Revenue is recognized as income in the period when it becomes due i.e. when the clients become obliged to
pay. If such revenue is not received, a debtor is created.
d) Depreciation of Non-Current Assets
Fixed assets are depreciated over periods for which the economic benefit deriving from their use is expected to
be realized by the organization. The straight line method is used with the appropriate rates applied to all assets
in existence at the end of the financial period, irrespective of the point in the year when they were acquired.
The rates applied are:
42
Asset Category
Computers and Accessories
Motor Vehicles
Office Equipment
Furniture, Fittings and Fixtures
Buildings
Books and Journals
e)
Rate
30%
20%
20%
12.5%
2%
10%
Foreign Currency Transactions
Transactions with implications on the Income Statement are translated at the ruling rate when the transactions
take place. Any accruing balances at the balance sheet date are translated at the ruling rate at that time.
43
NOTES TO THE ANNUAL FINANCIAL STATEMENTS

1. FIXED ASSETS
COST
Balance b/fw
at 1 July 2013
Capitalisation
of Buildings
Additions during
the period
Disposals during
the period
Balance c/fwd at
30 June 2014
Land &
Buildings
Motor
Vehicles
Furniture &
Fixtures
Office
Equipment
Computers &
Accessories
Books &
Journals
Intangibles
Total
2,848,361,775
729,951,839
362,190,423
273,180,285
326,536,086
33,127,232
164,358,487
4,737,706,126
76,541,942
35,201,860
146,792,989
8,918,350
-
151,535,482
716,060,942
308,382,145
473,329,075
42,045,582
315,893,969
5,453,767,068
2,848,361,774.86 1,027,022,157 438,732,365
ACCUMULATED DEPRECIATION
Balance b/fwd at 1
125,134,471.19
July 2013
Depreciation charge
Depreciation for the
35,567,235.50
period
Balance c/fwd at 30
160,701,706.69
June 2013
Net Book Value at 30
2,687,660,068.17
June 2013
Net Book Value at 30
2,723,227,303.67
June 2012
44
297,070,318
440,897,716
268,497,601
194,422,748
277,587,474
18,675,763
81,692,644
1,406,908,418
93,175,811
17,811,904
29,796,704
51,768,505
4,204,558
58,825,247
291,149,965
534,073,527
286,309,505
224,219,452
329,355,979
22,880,321
140,517,891
1,698,058,383
492,948,630
152,422,860
84,162,693
143,973,096
19,165,261
175,376,078
3,755,708,685
289,054,123
93,692,822
78,757,537
48,948,611
14,451,469
82,665,843
3,330,797,708
Description
2.
CASH AND BANK

Standard Chartered USD
Standard Chartered UGX
CitiBank -Sinking Fund (US$)
Stanbic Bank Ushs
Stanbic Bank US$
Petty Cash
3.
4.
PREPAYMENTS AND ADVANCES

Project Cash Advances
Accrued Income
Bank Gurantee
Staff Loans & advances
RECEIVABLES
Uganda Electricity
Transmission Company
Limited
Bwindi Community
Micro Hydro Power Ltd
Sugar and Allied Industries Limited
South Asia Energy Management Limited
Hydraulic & Sanitation Consult Limited
2013-2014
Ushs
2012-2013
Ushs
825,983,960
107,020,319
87,116,094
255,027,804
517,042,029
87,060,098
11,201,967
208,378,484
1,239,700,824
48,441,419
883,258,981
1,790,830,330
39,306,654
813,098,156
379,430,721
1,231,835,530
16,801,604
754,259,208
25,000,000
188,338,518
984,399,330
96,404,514
67,433,977
8,442,060
1,117,666,500
45
Description
The United Engineering & Trading
Company, UNENTA
Riverside Acres Limited
Green Ener Tech Aps
Mola Solar Systems (Uganda) Limited
Elgon Hydro Siti (Pvt) Ltd
IPIS Hydro Ltd
Bio - Electricity
BECS
Kakira Sugar Ltd
Marsh Pride Energy (U) Ltd
Carnelian Prime Trust
Proper Wood Works Ltd
Eco Power Limited
Ziba
PACMECS
Kilembe Mines
PACSPA
Albatros Energy (U) Limited
Electro-Maxx
Savimaxx
Keere Power Limited
Muvumbe Hydro Power
Elemental Energy Limited
Greenewus Energy
46
2013-2014
Ushs
2012-2013
Ushs
7,746,540
7,171,155
7,171,155
7,171,155
7,042,356
7,555,320
8,757,960
5,216,190
89,306,707
26,645,358
2,954,720
10,424,120
3,111,849
2,540,000
5,994,400
152,680,434
7,958,790
7,803,870
3,111,849
3,083,045
2,594,490
Description
Ruhore Company Limited
Optimus Energy
Sesam Energetics
Kikagati Power Company Limited
Uganda Electricity Distribution Company
Limited
Africa EMS Mpanga
Ferdsult Uganda Limited
Hydromax Uganda Limited
Kasese Cobalt Company Limited
Limited
Electro-Maxx Uganda Limited
Eco Power (U) Limited
Umeme Limited
Africa EMS Mpanga Ltd
Kalangala Infrastructure Services
Jacobsen Uganda Limited
Kinyara Sugar Works
West Nile Rural Electrification Company
Limited
2013-2014
Ushs
2012-2013
Ushs
2,591,350
7,796,700
3,066,053
24,087,708
72,096,482
18,780,000
57,631,700
22,177,699
28,206,307
379,272
76,173,927
23,332,553
24,558,442
32,508,964
168,064,419
44,424,000
36,981,946
2,540,000
38,209,910
38,209,910
1,364,242,433
1,023,563,423
47
Details
5.
6.
48
PAYABLES
Trade creditors
VAT Payable (Claimable)
WHT Payable
Sundry suppliers
Prepaid rent
DEFERRED INCOME
Africa EMS Mpanga
Jacobsen Uganda Limited
Kilembe Mines Limited
Kikagati Energy Limited
Kasese Cobalt Company Limited
Eskom Uganda Limited
Hydromax Limited
Kakira Sugar Ltd
Kinyara Sugar Works Limited
Sugar Corporation of Uganda Limited
West Nile Rural Electrification Company
Limited
Uganda Electricity Distribution Company
Limited
Limited
Umeme Limited
2013-2014
Ushs
2012-2013
Ushs
37,204,513
199,105,744
77,853,055
517,172,313
8,000,000
839,335,625
9,629,815
62,641,023
69,317,743
1,166,472,194
8,000,000
1,316,060,775
37,887,000
460,479,567
10,345,612
15,144,000
15,144,000
15,144,000
662,550,000
10,088,000
60,584,825
15,162,000
15,144,000
15,144,000
19,382,131
(317,734,844)
(48,622,289)
3,439,739
27,159,979
16,089,946
721,898,125
11,244,310
24,134,146
31,898,276
24,185,266
11,787,289
31,550,000
33,120,572
31,550,000
47,291,806
500,911,409
609,980,923
Details
Ferdsult Engineering Uganda Limited
Tronder Power
Electro-Maxx Uganda Limited
Aggreko Uganda
Eco Power
Uganda Electricity Transmission Company
Limited
Invespro Uganda Limited
Kilembe Investments Limited
Kalangala Infrastructure Services
Kyegegwa Rural Cooperative Society
BECS
PACMECS
Rwimi HPP
Nyamwamba
Greenewus
Elgon Siti (U) Limited
7.
PAYROLL, GRATUITY & OTHER ACCRUALS

Payroll - Clearing Account
URA - PAYE Payable
NSSF Payable
Audit Expenses - ERA Trust Fund
Accrued Gratuity
Insurance Premium
2013-2014
Ushs
15,144,000
34,411,500
69,199,842
378,600,000
2012-2013
Ushs
433,832
(21,980,704)
105,211,569
47,222,055
354,934,515
9,987,946
4,417,000
7,572,000
4,417,000
4,417,000
14,844,000
22,716,000
14,844,000
25,220,000
2,502,618,701
9,987,946
1,080,000
1,877,320
4,722,270
2,606,741
198,460,833
81,179,764
579,252,559
533,062,428
2,690,700
1,397,253,025
218,599
171,228,010
79,842,339
75,130,256
338,766,521
1,718,744,180
665,185,724
49
Details
8.
9.
BOARD EXPENSES
Chairmans Retainer
Members Retainer
Communication & travel costs
Meetings Costs
TRAINING, CONFERENCES & WORKSHOPS
Board Members:
Per Diem Allowance
Travel Abroad/Tickets
Training and Conference fees
Staff:
Air tickets
Per Diem
Tuition
Local Training
Professional subscriptions
ERA Strategy/Business Planning workshops
Materials + related costs
Conference fees
10.
50
Total on Training & Conferences

PERSONNEL AND RELATED EXPENSES
Staff Salaries
NSSF Contribution 10%
2013-2014
Ushs
145,200,000
32,290,034
12,843,760
190,333,794
2012-2013
Ushs
46,800,000
115,710,000
25,144,500
13,615,800
201,270,300
203,971,175
149,269,120
140,033,447
493,273,742
207,383,358
145,909,532
185,037,318
538,330,208
196,885,823
295,527,809
297,176,267
7,760,009
99,790,671
897,140,578
1,390,414,320
130,539,467
228,809,459
324,757,836
10,801,094
159,673,999
854,581,855
1,392,912,063
3,504,554,816
470,842,999
2,760,582,484
376,465,536
Details
11.
12.
13.
2013-2014
Ushs
Gratuities
1,004,136,154
Staff Medical Expenses
173,625,610
Staff Welfare/Temporary
21,821,667
Leave allowances
240,722,236
Acting/Responsibility Allowances
190,566,380
Work Life Balance & HIV at Work programme 22,950,786
Staff Insurance
61,968,523
5,691,189,171
CONSULTANCY SERVICES
Local Consultancy
19,815,072
International Consultancy
165,690,642
Local consultancy studies
730,000
Legal Fees
51,600,429
Audit Fees
237,836,142
MONITORING & COMPLIANCE
Fuel & Travel costs
Accommodation & Subsistence
36,353,698
Other expenses
108,751,203
Installation & Grid Code Committes costs
12,853,941
157,958,842
PROMOTIONS AND PUBLIC PROFILE
Advertisements
20,598,915
Promotions and Publications
133,700,914
154,299,829
2012-2013
Ushs
770,635,092
168,985,942
33,498,056
212,924,323
150,206,382
16,269,047
36,775,833
4,526,342,695
11,966,200
168,259,427
8,400,000
374,568,420
33,917,722
597,111,769
596,000
18,256,400
12,392,679
46,004,435
77,249,514
27,183,963
73,970,265
101,154,228
51
Details
14.
15.
16.
52
GENERAL ADMINISTRATIVE EXPENSES

Bank Charges
Communication - Telephone/Internet &
E-mail
Interest Expense
Supplies - Computer
Supplies - Stationery
Supplies - Office Equipment
Supplies - General
Maintenance - Furniture/Equipment
Insurance of Office and Equipment
Motor Vehicle expenses
Office maintenance (General up-keep)
Utilities -Water, Power, Rates
Staff Welfare - Meals and Others
Office Security/cleaning
FOREX TRANSLATION GAINS/(LOSSES)
Foreign Exchange (Loss) gain
STAKEHOLDER PROGRAMMES
Workshops/Consumables
Radio & TV Programmes
Regional Programmes (AFUR/EREA)
Adverts & Notices
Venue/Accommodation/Subsistence
Publications/Materials
2013-2014
Ushs
2012-2013
Ushs
20,462,426
97,706,968
16,964,754
127,572,600
4,672,212
99,644,665
8,498,467
82,043,582
67,213,059
34,540,262
143,801,529
34,112,054
38,674,922
144,951,946
26,055,000
802,377,093
1,005,000
26,117,401
42,844,474
1,961,513
88,562,113
6,547,814
28,068,162
148,684,847
32,400,000
63,878,969
208,720,169
9,631,800
802,959,614
52,516,827
12,122,631
211,693,627
155,683,670
56,518,103
50,222,683
67,307,568
59,493,492
61,621,446
163,099,454
113,741,261
41,786,780
78,181,323
112,092,879
Details
Special Projects +Other
17.
18.
GENERAL RESERVES
Balance at commencement of year
Post Audit Adjustments during the year
Reverse for Revenue provisions
Surplus/(Deficit) for the year
Balance as at 30 June
17.OTHER INCOME
This includes mainly interest earned on bank
balances and staff loans/advances during
the year
Disposal of Motor Vehicle
Other sundry Items
Accrued NSSF on Gratuity
Between 2005-2011
19. Provision for Dison Okumu Case +
Umeme
Court awarded damages to the plaintiff and
ERA paid off
in 2013-2014 FY
2013-2014
Ushs
31,022,145
631,941,288
2012-2013
Ushs
12,690,593
583,213,736
2,517,065,134
(596,337,705)
(278,052,598)
1,642,674,831
2,385,773,796
(91,868,934)
223,160,272
2,517,065,134
8,919,171
6,351,749
280,757,274
53
Stakeholders register attendance for a workshop organized by ERA.
ELECTRICITY REGULATORY AUTHORITY

ERA House, Plot 15, Shimoni Road, Nakasero
P. O. Box 10332, Kampala
Tel: +256 312 260 166, +256 757 341 646
Consumer Affairs Hotline: +256 757 341 647
Fax: +256 414 341 624
Email: info@era.or.ug, Website: www.era.or.ug

ERA Annual Report 2013/14

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ANNUAL REPORT

The ERA team in 2014.

Members of the Electricity Regulatory Authority............................7

ELECTRICITY INDUSTRY PERFORMANCE.................................21

4.6 Installation Permits..................................................................29

African Development Bank

Multi -Year Tariff

Bundibugyo Energy Cooperative Society

National Environment Management Authority

Bujagali Energy Limited

Chief Executive Officer

Pader/Abim Community Multipurpose Energy

East African Power Pool

Power Purchase Agreement

Electricity Consumer Committee

Public Private Partnership

Electricity Regulatory Authority

Electricity Supply Industry

Renewable Energy Feed-in-Tariff

Generally Accepted Accounting Principle

Uganda Electricity Distribution Company Limited

Global Energy Transfer for Feed-in-Tariff

Uganda Electricity Generation Company

Heavy Fuel Oil

Uganda Electricity Transmission Company

Uganda Manufacturers Association

International Financial Reporting Standards

Uganda National Bureau of Standards

Japan International Cooperation Agency

West Nile Rural Electrification Company Limited

Kenya Power and Lighting Company

Kilembe Mines Limited

Ministry of Energy and Mineral Development

Ministry of Finance, Planning and Economic

ANNUAL REPORT 2013 - 2014

Members of the Electricity Regulatory Authority

Mr. Richard Santo Apire

Mrs. Lydia Kiriire Opuru

Dr. Muhammad Serunjogi

Eng. Fabian Tibeita

The Management Team

Dr. Benon M. Mutambi

Mr. Patrick Mwesige

ANNUAL REPORT 2013 - 2014

Eng. Ziria Tibalwa Waako

Dr. Geofrey Okoboi

STATEMENT BY THE CHAIRMAN

n behalf of the Members, Management and Staff of the

The Authority adopted the Multi-Year Tariff regime for UETCL in

The Authority with support from the Global Energy Transfer

In an effort to ensure continued enhancement of efficiency in the

Notably, the boost in the generation capacity was augmented

A significant development for the ESI during the review period

Statement by the Chairman

offers transparency on tariff determination and allows for the

A substation at the Electro-Maxx power plant in Tororo District.

ANNUAL REPORT 2013 - 2014

Richard Santo Apire

THE CHIEF EXECUTIVE OFFICERS REPORT

he financial year 2013/14 was one of growth for the Electricity

Remarkably, there was a reduction in energy loss levels in the

The Chief Executive Officers Report

A major achievement for the Authority during the review period

being of its staff by enriching the existing employee wellness