Introduction to Licencing
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A license is a document which grants special permission to a specified company to develop and run power stations and dams specified in the license, including conditions and rules of operation.
Basis of ERA Licencing Powers of Electricity Activities
ERA derives its powers to issue, modify or revoke licenses from the Electricity Act, Cap 145, Laws of Uganda. Under section 10 (a), (b), (c) and (d) one of the key functions of ERA is to receive and process applications for licenses for the generation, transmission, distribution sale of electricity. It also empowers ERA to prescribe conditions and terms of licenses and to modify licenses issued under the Act.
Objectives of Licencing Electricity Project
- To attract private capital and management expertise by providing investors and operators a certain level of certainty and commitment as a safeguard to their investments.
- Commitments to investors are further strengthened by obligations assumed by the Bulk Power Purchaser/Supplier in the PPA and the guarantees of the GOU under the Implementation Agreements and associated instruments.
- To guarantee consumers at least a minimum level of services, service standards, net work growth and an equitable tariff.
- To provide a basis for monitoring of licensees and enforcement of investor/operator obligations as ERA generally regulates by contract.
Types of Licences Issued by ERA
- Generation Licence
- Transmission Licence
- Bulk Supplier Licence
- System Operator Licence
- Distribution Licence
- Sale Licence
- Export and Import Licence.
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