Electricity Regulatory Authority CEO Reflects on 2024 Achievements and Outlines 2025 Agenda

By John Kusolo

The Chief Executive Officer of the Electricity Regulatory Authority (ERA), Eng. Ziria Tibalwa Waako has expressed pride in the progress made by Uganda's electricity sub-sector in 2024 and outlined a strategic vision for the coming year. Speaking at an annual review meeting attended by the Honorable Minister of Energy and Mineral Development, the CEO provided an in-depth account of achievements, challenges, and future priorities across the generation, transmission, distribution, and regulatory segments of the electricity supply industry.

The year 2024 marked a transformative period for Uganda’s electricity sector, characterized by innovations in tariff structures and notable progress in infrastructure and regulatory frameworks. ERA implemented initiatives that balanced consumer affordability with financial sustainability, enhancing socio-economic transformation.

Tariff Reductions: ERA successfully reviewed and reduced end-user tariffs across all consumer categories, fostering economic growth and societal well-being.

Renewable Energy Feed-in Tariffs (REFiT): A standardized REFiT was introduced for renewable energy systems of up to 50 MW, encouraging private sector participation in clean energy generation.

Charcoal-to-Power Initiative: Special tariffs were introduced to promote e-cooking, reducing dependence on biomass energy.

Declining Block Tariff: A tariff structure for industrial consumers aimed at lowering production costs and improving regional competitiveness.

Demand Growth Framework: ERA focused on incentivizing industrial demand growth, supported by regulatory frameworks and load growth projects.

*Regulatory and Tariff Principles*

The CEO highlighted the legal and economic frameworks that guide tariff computation. These frameworks ensure that electricity licensees recover reasonable costs while providing incentives for operational efficiency.

*Legal Mandate*

Under the Electricity Act, ERA is mandated to establish tariff structures, investigate tariff charges, and approve rates. Tariff structures are guided by principles of cost recovery, fair returns on investments, and the promotion of efficiency.

*Economic Regulation Framework*

ERA employs a hybrid regulation model combining Rate of Return and Incentive-Based Regulation. This approach ensures that licensees earn a return on investments and meet performance parameters related to efficiency, quality of service, and reliability.

*Customer Categorization for 2025*

The ERA CEO announced changes in customer categorization to better align with electricity consumption patterns and demand growth. Effective January 2025, the following updates will be implemented:

Public Amenities Category: A new category merging street lighting and public hospitals.

Segregation of Industrial Consumers: Medium and large industrial consumers will now be categorized separately for manufacturing and service sectors.

Extra-Large Industrial Consumers: This category targets high-demand users with a focus on manufacturing.

*End-User Tariff Structure*

The tariff structure for 2025 is designed to ensure cost recovery across the generation, transmission, and distribution segments. A breakdown of contributions by operators highlights efforts to maintain tariff stability while supporting sector growth.

Operator Contribution (Ush/kWh) Percentage Contribution

Bujagali Energy Limited 77.9 16.9%

Nalubaale and Kiira 8.1 1.8%

Karuma 42.8 9.3%

Isimba 28.2 6.1%

Other Operators 302.8 65.9%

Tariff Reduction Initiatives for 2025

The CEO outlined measures aimed at reducing tariffs and promoting energy access:

Direct Purchase of Electricity: Reducing reliance on intermediaries.

Time-of-Use Tariff Structure: Encouraging energy use during off-peak hours.

Distribution Efficiency Improvements: Reducing losses in the transmission and distribution networks.

Expansion of the Grid: Extending electricity access to underserved areas.

Promotion of Electric Mobility: Supporting Uganda’s transition to electric vehicles.

Achievements in Demand Growth

ERA’s demand-driven initiatives have boosted electricity consumption and sector sustainability. Key achievements include:

Approval of private sector involvement in transmission projects.

Implementation of the Energy Rebate Policy, which incentivizes infrastructure development.

Expansion of industrial zones and electrification of rural areas with high demand potential.

The CEO expressed gratitude to the Government of Uganda, ERA staff, licensees, and electricity customers for their collaboration in achieving the sector’s goals. As the country enters 2025, ERA remains committed to fostering a self-sufficient and sustainable electricity sector aligned with Uganda’s Vision 2040 for socio-economic transformation.

In conclusion, the CEO reiterated the Authority’s resolve to advance electricity access, affordability, and reliability while embracing innovation and sustainability to power Uganda’s development agenda.