Ugandan Flag ERA Logo
  

 
Related Links

Explain the term ‘Electricity tariffs’ and give ERA’s role in the adjustment and approval of Tariffs?

ANS:

  • Definition of a tariff – the cost per unit of electricity.
  • Definition of Revenue Requirement – the amount of money / funds required to operate the entire electricity sub sector system. This comprises of  the following:-

    • Operations and maintenance costs
    • Normal overheads.
    • Cost of investment in utilities / value of asset consumed during operation.

  • Definition of losses in the sector – these comprise of commercial losses i.e. thefts and technical losses i.e. resistance along transmission wires.
  • Definition of sector segments i.e.
  • Generation – the production of electricity from the dam hydro facilities – currently Eskom Ltd has a 20 year concessionaire to operate this in Jinja.
  • Transmission – the transportation of electricity along heavy duty 66 KV and 132KV lines to sub stations. (The wholesaling of electricity).
  • System operator – the bulk supplier (wholesaler) of electricity.
  • Distribution – transportation of electricity along low voltage lines i.e. 33KV, 11 KV lines, and 415 volts lines. (The retailing of electricity).

Determinants of tariffs adjustments:

  • Cost of delivering electricity to your premise.
  • Operation and maintenance costs.
  • Normal overheads.
  • Cost of investment in utilities / value of assets consumed during operation.
  • Units sold – (generated units) less technical losses and commercial losses e.g. thefts.

How tariffs are adjusted by ERA:

  • In setting the tariffs, ERA must take into account all interests of stakeholders in the electricity sector (i.e. consumers, electricity operators and Government). This is by Law.
  • When ERA receives tariff adjustment Applications from the electricity operators / licensee it: -
    • Invites the interested members of the public to study documents for 30 days and make comments where necessary.
    • Receives written comments if any (and may call a Public Hearing if necessary).
    • ERA professional staff analyses the applications, budgets, and the publics’ comments if any and may consult some stakeholders before making recommendations to the Authority.

IV. The Authority takes a decision on the matter. May approve or otherwise and publishes the new tariffs.

 
     

Related Links :Privacy Policy : Legal Disclaimer
Copyright © 2008, Electricity Regulatory Authority