ANNUAL REPORT 2015 – 16
1 ANNUAL REPORT 2015 - 16 The cover photograph is of the 10 MW Access Uganda Solar Plant, the first-ever Grid-connected Solar Photo Voltaic plant in Uganda, which was licensed by ERA in the financial year 2015/16.
2 ANNUAL REPORT 2015 - 16 ANNUAL REPORT 2015 – 16
3 ANNUAL REPORT 2015 - 16 Stakeholders at the GETFiT Forum Dinner and launch of ERA’s new corporate identity. iv ANNUAL REPORT 2015 - 16 Table of Contents
1.0 WHO WE ARE ...... 1 3.7 Quality of Service...... 21 1.1 Our Functions ...... 1 3.8 Energy Efficiency ...... 21 1.2 Strategic Objectives ...... 2 3.9 Improvement of the Distribution Network ...... 22 1.3 Our Vision ...... 2 4.0 MONITORING AND ENFORCEMENT OF COMPLIANCE .. 23 1.4 Our Mission ...... 2 4.1 Statutory Inspections ...... 23 1.5 Our Core Values ...... 2 4.2 Environmental Monitoring and Compliance ...... 23 1.6 Regulatory Principles ...... 3 5.0 PERFORMANCE OF THE ELECTRICITY SUPPLY INDUSTRY .. 25 Members of the Electricity Regulatory Authority ...... 4 5.1 Loss Reduction ...... 25 The Management Team ...... 5 5.2 Energy Purchases and Sales by UETCL ...... 25 Statement by the Chairman ...... 6 5.3 Energy sales by distribution companies ...... 26 Chief Executive Officer’s Report ...... 8 5.4 Customer connections ...... 27 2.0 GOVERNANCE STATEMENT ...... 10 6.0 SECTOR INVESTMENTS ...... 28 2.1 Composition of the Board ...... 10 6.1 Approved Investment Plans ...... 28 2.2 Profile of the ERA Board Members ...... 10 6.2 Audit of Completed Investments ...... 28 2.3 Conduct of Meetings of the Authority ...... 12 7.0 CONSUMER PROTECTION ...... 30 2.4 Committees of the Authority ...... 12 7.1 Public Outreach ...... 31 2.5 Authority Meetings and Decisions ...... 15 8.0 EXTERNALLY FOCUSED ACTIVITIES ...... 32 3.0 POWER SUPPLY SECURITY AND SUSTAINABILITY ...... 17 8.1 Stakeholder Engagement ...... 32 3.1 Electricity Generation ...... 17 8.2 ERA Profiling ...... 34 3.2 Projects under Development ...... 17 9.0 HUMAN RESOURCE AND ADMINISTRATION ...... 36 3.3 Licensed Projects under construction ...... 18 9.1 Training and Development ...... 36 3.4 Special Projects under development ...... 19 9.1.1 Trainings of Staff ...... 36 3.5 Projects at feasibility study ...... 19 9.1.2 Recruitments in 2015/16 ...... 36 3.6 Electricity Transmission ...... 19 9.1.3 Staff Welfare ...... 37
v ANNUAL REPORT 2015 - 16 9.2 Capital Development (New ERA House) ...... 37 List of Abbreviations 10.0 FINANCIAL PERFORMANCE ...... 38 11.0 Annual Financial Statements ...... 39 AfDB African Development Bank 11.1 Management Responsibility ...... 39 BECS Bundibugyo Energy Cooperative Society 11.2 Auditor’s Responsibility ...... 40 DSM Demand Side Management 11.3 Opinion ...... 40 STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2016 ... 41 ERA Electricity Regulatory Authority STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ESI Electricity Supply Industry ENDED JUNE, 2016 ...... 42 FY Financial Year STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED JUNE 30, 2016 ...... 43 IAS International Accounting Standards STATEMENT OF CHANGES IN EQUITY AS AT JUNE 30, 2016 .. 44 IFRS International Financial Reporting Standards NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL JICA Japan International Cooperation Agency YEAR ENDED JUNE 2016 ...... 44 MW Mega Watts NSSF National Social Security Fund Pader Abim Community Multi-Purpose Electric PACMECS Co-operative Society Limited PAYE Pay As You Earn QoS Quality of Service REFiT Renewable Energy Feed-in Tariff UMA Uganda Manufacturers Association URA Uganda Revenue Authority
vi ANNUAL REPORT 2015 - 16 The Board of the Electricity Regulatory Authority, October 2015 to-date. vii ANNUAL REPORT 2015 - 16 List of Tables and Figures
Table 1: Human Resource Committee attendance ...... 13
Table 2: Audit Committee Sittings ...... 14
Table 3: Authority Members’ attendance ...... 15
Table 4: Licensed Projects in the FY 2015/16 ...... 17
Table 5: Projects under construction ...... 18
Table 6: Investments approved by the Authority for Umeme Limited ...... 29
Table 7: Staff recruited in 2015/16 ...... 29
Table 8: ERA Staff compliment in 2015/16 ...... 35
Figure 1: Authority Decisions per Month ...... 16
Figure 2: Generation Mix of Uganda ...... 17
Figure 3: Sales by UETCL for the years 2014/15 ...... 25
Figure 4: Growth (%) in sales by distribution licensees ...... 26
Figure 5: Energy sales by other licensees (excluding Umeme) ... 26
Figure 6: Number of customers by distribution licensee ..... 27
Figure 7: Complaints registered by ERA during FY 2015/16 ... 30 ERA staff inspect network accessories in the Ferdsult Distribution concession. viii ANNUAL REPORT 2015 - 16 1.0 WHO WE ARE
The Electricity Regulatory Authority (ERA) is a statutory body (g) To approve rates of charges and terms and conditions established in 2000, in accordance with the Electricity of electricity services provided by transmission and Act, 1999, Chapter 145, Laws of Uganda. The Authority distribution companies; is mandated by the Act to regulate the generation, transmission, sale, export, import and distribution of electrical (h) To review the organisation of generation, transmission energy in Uganda. and distribution companies or other legal entities engaged in the generation, transmission and distribution of electricity to the extent that that 1.1 Our Functions organization affects or is likely to affect the operation The Authority is statutorily charged with the following of the electricity sector and the efficient supply of functions, under Section 10 of the Electricity Act, 1999:- electricity; (i) To develop and enforce performance standards (a) To issue licences for: for the generation, transmission and distribution of (i) the generation, transmission, distribution or sale electricity; of electricity; and, (j) To encourage the development of uniform electricity (ii) the ownership or operation of transmission industry standards and codes of conduct; systems; (k) To establish a uniform system of accounts for (b) To receive and process applications for licences; licensees;
(c) To prescribe conditions and terms of licences issued (l) To advise the Minister regarding the need for under the Act; electricity sector projects; (m) To prepare industry reports and to gather information (d) To modify licences issued under the Act; from generation, transmission and distribution (e) To make and enforce directions to ensure compliance companies; with licences issued under the Act; (n) To prescribe and collect licence fees; (f) To establish a tariff structure and to investigate tariff (o) To provide for the procedure for investment charges, whether or not a specific complaint has programmes by transmission and distribution been made for a tariff adjustment; companies; 1 ANNUAL REPORT 2015 - 16 (p) To approve standards for the quality of electricity Distribution. supply services provided; (e) Promote Reasonable and Fair pricing of Electricity (q) To approve codes of conduct in respect of the Services. operation of transmission and distribution systems; (f) Promote Objectivity, Transparency and Accountability (r) To acquire information and carry out investigations to stakeholders. relating to any of its functions; and (g) Enhance good Governance, Internal operating (s) To perform any other function that is incidental or efficiency and Sustainability of ERA. consequential to its functions under this section, or as may be conferred on it by any other law. (h) Enhance Human Capital management. (i) Improve use of Technology and promote optimal 1.2 Strategic Objectives utilization of organizational assets.
In the review period, the Authority executed its mandate 1.3 Our Vision guided by the following Strategic Objectives, as drawn from the ERA Ten-Year Strategic Plan, 2014/15 to 2023/24. “To be an effective regulator that promotes safe, efficient, (a) Increase Electricity Generation to meet present reliable and sustainable electricity supply”. and future demand through attraction of both private and public sector investment and integration of 1.4 Our Mission environmental concerns. “To regulate the electricity industry in accordance with (b) Promote Energy Efficiency and Demand Side applicable laws, policies, standards and international best Management practices. practice.” (c) Strengthen National and Regional Electricity Transmission and Distribution infrastructure and enhance 1.5 Our Core Values regional collaboration in electricity regulation. Professionalism (d) Increase Technical, Commercial and Operational Integrity efficiency in Electricity Generation, Transmission and Innovation
2 ANNUAL REPORT 2015 - 16 Transparency and Accountability Equal and Fair Opportunity Stakeholder Sensitivity Teamwork
1.6 Regulatory Principles
. Predictability and Consistency . Independence . Neutrality . Public Interest . Efficiency . Reliability
Principal Place of Business and Registered Address Electricity Regulatory Authority ERA House, Plot 15, Shimoni Road, Nakasero P.O. Box 10332, Kampala - Uganda Telephone: +256 414 341 852, +256 393 260 166 Email: [email protected]; Website: www.era.or.ug
Bankers Standard Chartered Bank Uganda Limited Plot 5, Speke Road P.O. Box 7111, Kampala – Uganda
Stanbic Bank Uganda Limited Corporate Branch, Crested Towers P.O. Box 7131, Kampala – Uganda Pupils of Nakasero Primary School following a sensitization conducted by ERA.
3 ANNUAL REPORT 2015 - 16 Members of the Electricity Regulatory Authority
Mr. Richard Santo Apire Chairman (October 2011 to-date)
Eng. Fabian Rwamwema Tibeita Dr. Muhammad Serunjogi Mrs. Lydia Kiriire Opuru Eng. Joseph Oteng Otogo Amb. Joan Rwabyomere Dr. Sarah Wasagali Kanaabi Member (Deceased) Member Member Member Member Member (October 2011 to-date) (October 2011 to September 2015) (October 2011 to September 2015) (July 2014 to-date) (October 2015 to-date) (October 2015 to-date)
4 ANNUAL REPORT 2015 - 16 The Management Team
Dr. Benon M. Mutambi Chief Executive Officer
Eng. Ziria Tibalwa Waako Dr. Geofrey Okoboi CPA Edward Iruura Mr. Harold Obiga Director Technical Regulation Director Economic Regulation Director Finance and Administrative Ag. Director Legal and Authority Services Affairs
5 ANNUAL REPORT 2015 - 16 Statement by the Chairman
A remarkable milestone in FY 2015/16 was the licensing of the first-ever Grid-Connected Solar Photo Voltaic and Wind Power Projects in Uganda; which further diversified the Country’s Energy Mix. A number of Hydro Power Projects were also licensed. Overall, the Projects licensed by ERA in FY 2015/16 will contribute a total of 108.45 MW. In a related exciting development, the Authority witnessed commencement of the construction of several Projects supported by the Global Energy Transfer for Feed-in Tariff Mr. Richard Santo Apire Chairman (GET FiT) Program. These projects, which are expected to be commissioned by 2018, will contribute 98.04 MW to the National Grid. Construction of the Karuma and Isimba Large Hydro Power Projects also commenced through a Policy Directive. In an effort to heighten the monitoring and compliance function of the Authority, the Authority undertook inspection of licensee installations in Eastern and Western Uganda, in August and September 2015. The inspections provided a platform for interaction between the ERA Board Members and licensees; and appreciation of key issues relating to the operation of Power Generation Plants. I have the pleasure to present to you the Annual Report of Following the final round of funding for Renewable Energy the Electricity Regulatory Authority (ERA) for the Financial Projects under the GET FiT Program in Uganda, the Authority Year (FY) 2015/16. This report gives an account of the in partnership with the GET FiT Secretariat hosted a forum various achievements registered by the Authority in the to take stock of the Program’s impact, lessons learnt, and review period, as mandated by the Electricity Act, 1999; the future of Renewable Energy. As GET FiT progresses to and guided by the ERA Ten-Year Strategic Plan and Three- roll-out in other countries in Africa, ERA is extremely proud Year Business Plan. that Uganda has become a model country for private sector investments in Renewable Energy on the continent 6 ANNUAL REPORT 2015 - 16 of Africa, on account of the GET FiT Program. Going forward, the Authority projects surplus supply of energy from all the Power Generation Companies that have been In September 2015, the Minister of Energy and Mineral licensed by the Authority. It is, therefore, important that the Development appointed two (2) new Members to the Government of Uganda initiates aggressive programs to Board of the Electricity Regulatory Authority. Ambassador grow demand for electricity that will absorb the increased Joan Rwabyomere and Dr. Sarah Wasagali Kanaabi bring supply. to the Board of ERA (the Authority) a wealth of knowledge, experience, and competences in their respective areas of I take this opportunity to thank the Government of Uganda specialization, which enhances diversification of the Board. I and the various stakeholders that have supported ERA in warmly welcome the new Members and wish them a fruitful the execution of its mandate during the Financial Year tenure as we further the development of the Electricity 2015/16. I am especially grateful to the Minister of Energy Supply Industry. and Mineral Development, Development Partners, the In a move to re-affirm its position as the Regulator of the Members, Management and Staff of the Authority. We Electricity Supply Industry, ERA unveiled a new Brand Identity look forward to your continued support to the Electricity in May 2016. With this new identity, the Authority commits to Regulatory Authority. delivering Sustainable Electricity Supply. Notably, during the review period, the country’s Transmission and Distribution infrastructure was at its peak. Accordingly, increased generation will require significant investment in Richard Santo Apire both the Distribution and Transmission networks. Availability Chairman of financing for these investments and the implications on the Tariff remains a major challenge.
The Electricity Supply Industry was exposed to the depreciation of the Uganda Shilling against major trading currencies, especially the United States Dollar during the review period. This increased the revenue requirement of the Industry, which subsequently had adverse effects on the Electricity End-User Tariffs.
7 ANNUAL REPORT 2015 - 16 Chief Executive Officer’s Report
largely hinged on these areas. In terms of Electricity Generation, the Country’s Installed Capacity increased to 897 MW (863.6 MW in FY 2014/15). This capacity will be further boosted following the issuance of Licences by the Authority for 11 (eleven) Projects of varying technologies and geographical spread, for the Generation and Sale of Electricity. Through a Policy Directive issued by the Ministry of Energy and Mineral Development, construction of the 600 MW Karuma and 183 MW Isimba Hydro Power Dr. Benon Mutambi Chief Executive Officer Projects commenced. There was also commencement of construction for nine (9) Power Projects funded by the GET FiT Program, which will further augment Uganda’s Installed Capacity, upon completion. The Authority further approved investments that targeted critical and emergency areas in the Distribution and Generation segments. The investments amounting to US$ 83.7 Million are expected to strengthen both the Distribution and Generation segments so as to improve on the Reliability of Electricity Supply. Technical Audits were conducted for the completed investments to verify the value added by these investments; and to approve appropriate Return on The 2015/16 Financial Year marked the second year of Investment levels for the licensees. implementation of the ERA Three-Year Business Plan (2014/15 – 2016/17), in line with the Ten-Year Strategic Plan (2014/15 In the exercise of its mandate to approve Standards for the – 2023/24). The key focus areas for the Authority during the quality of Electricity Supply service provided to consumers, review period were: Reliability of Supply, Monitoring and the Authority approved the Quality of Service Standards Compliance, Institutional Capacity Building, Affordable in July 2015. The Standards provide for the minimum level Tariffs, and Transparency and Accountability. Therefore, of performance for Distribution Companies on various the business conducted by the Authority in FY 2015/16 was parameters. For each quarter in FY 2015/16, the Authority reviewed the Quality of Service reports submitted by the 8 ANNUAL REPORT 2015 - 16 licensees and brought the areas in need of improvement The Electricity Regulatory Authority is grateful to all the to the attention of the licensees. stakeholders that have supported us during the Financial Year 2015/16. We say thank you to the Government of With a view to address the space challenges currently Uganda and more so, the Minister of Energy and Mineral faced at the Secretariat, the Authority took critical steps Development, and the Minister of Finance, Planning and towards the construction of a new home for ERA. The Economic Development, the Development Partners, new ERA House is expected to provide the much needed Licensees, the Board, Management, and Staff of the space for the expanding staff compliment of the Authority. Authority and other stakeholders that ERA has worked with. Construction works are planned to start in 2018 for a period of three (3) years. In the review period, the Authority received six (6) local and international recognitions/awards for its role in championing access to affordable, reliable, sustainable, and modern Dr. Benon Mutambi Energy for all, among other endeavours. We appreciate Chief Executive Officer the respective institutions that considered ERA worthy of these recognitions/awards. Going forward, the Authority will work even harder to continuously excel at executing its regulatory mandate. The aforementioned milestones notwithstanding, the Authority in the review period had a staff compliment of 49 (forty nine) against a planned compliment of 63 (sixty three). The Authority requires enhanced capacity in order to address the increasing regulatory demands, which require ERA’s attention. Based on the financial performance of FY 2015/16, the Authority has started realizing surplus funds that could be utilized to mitigate the challenge of capacity.
9 ANNUAL REPORT 2015 - 16 2.0 GOVERNANCE STATEMENT
2.1 Composition of the Board Chairman effective September 2015.
The Authority (Board of the Electricity Regulatory Authority) Prior to his appointment to the ERA Board, Mr. Apire had is composed of five (5) Members appointed by the Minister worked as a Member of the Local Government Finance of Energy and Mineral Development. The tenure of office Commission from April 2004 to October 2008, a Board lasts five (5) years and is renewable once. The Minister Member for Housing Finance Company of Uganda further appoints the Chair of the Authority in accordance between 1994-2001, and National Housing and Construction with Section 5 of the Electricity Act, 1999. The functions of Company Limited (NHCC) between 1987-1994. He also the Authority are laid out in Section 10 of the Electricity Act. worked with Bank of Uganda for over 20 years, retiring at the level of Director Development Finance Department. In FY 2015/16, the Board of ERA was composed of five (5) Following retirement from the Central Bank of Uganda, Members, namely: Mr. Richard Santo Apire (Chairman), Mr. Apire worked as a consultant on Risk Management for Eng. Joseph Oteng Otogo (Member), Mrs. Lydia Kiriire Tropical Bank for two years. Opuru (Member), Dr. Muhammad Serunjogi (Member), and Eng. Fabian Rwamwema Tibeita (Member). In September Mr. Apire brought to the Authority a wide, insightful and 2015, the Minister appointed two (2) new Members to the meticulous analytical acumen that has been very pivotal to Board, namely: Ambassador Joan Rwabyomere and Dr. the work of the Authority. He is currently serving his second Sarah Wasagali Kanaabi. These replaced Dr. Muhammad term as Authority Member. Serunjogi and Mrs. Lydia Kiriire Opuru. Eng. Fabian Rwamwema Tibeita Member (October 2011 – to date) 2.2 Profiles of the ERA Board Members Eng. Tibeita is a 1st class graduate of Bsc. Mechanical Engineering from the University Mr. Richard Santo Apire of Nairobi. He has served in the Public Sector Chairman (October 2011 – to date) for over 30 years, with 28 years of this service Mr. Apire is a qualified Financial Specialist being in Senior Management positions and and Banker with a Bachelor of Commerce directorships. At the time of his retirement Degree from the University of Nairobi. He was from Public Service, Mr. Tibeita had been serving as the appointed the Chairman of the Authority in Director General of the East African Development Bank for September 2011 and reappointed for a five-year term as 11 years. He also served on 19 Boards in Uganda, Kenya
10 ANNUAL REPORT 2015 - 16 and Tanzania in the capacities of Chairman and Member. for Public – Private Partnerships, a Tetra Tech Company, Eng. Tibeita previously chaired the Boards of Uganda authorized by IACET and recognized worldwide. She is a Coffee Development Authority and was a member of the Lawyer by profession with extensive legal experience in Board of IPS Limited, Vipugo Plantation (K) Limited, Uganda Board advisory and litigation matters. Cement Industries Limited, Nytil Uganda Limited, Mabati Prior to joining the Electricity Regulatory Authority as a Rolling Mills (K) Limited, and Universal Electronics (K) Limited. Board Member, Mrs. Opuru served as the Lead Counsel Before joining the ERA Board, he was a Board Member of for Project Affected Persons (PAPs) for the Bujagali Hydro Standard Chartered Bank for 13 years. Currently, he is the power project. She is a Certified Court connected Mediator Board Chairman of Crest Foam Limited and Hoima Caritas for the High Court of Uganda. She is passionate about Development Organization. He is a Certified Regulator and community development work specifically in protection PPP Specialist (Institute for Public – Private Partnerships). of vulnerable persons’ rights, in awareness programs, advocacy campaigns and Legal Education. Dr. Muhammad Serunjogi (Deceased) Member (October 2011 – September 2015) Eng. Joseph Oteng Otogo Dr. Muhammad Serunjogi is a Certified Member (July 2014 – to date) Regulator with Certification from IP3, the Eng. Otogo joined the Authority in July Institute for Public –Private Partnerships, a Tetra 2014 with over 20 years of experience in Tech Company, authorized by IACET and Engineering. He holds a Master of Science recognized worldwide. He is an Economist Degree in Sustainable Electrical Power from by profession. Dr. Serunjogi joined ERA on September 11th Brunel University; a Bachelor’s Degree in 2010. Prior to joining the Electricity Regulatory Authority, he Electronics and Communication Engineering (University Lectured at Makerere University and worked with Bank of of North London); and a Higher National Certificate in Uganda. Electronics (City of Westminster College). For 13 years, Eng. Otogo worked as a Senior Technical Mrs. Lydia Kiriire Opuru Support Engineer at Alcatel-Lucent, between 2000 and Member (October 2011 – September 2015) 2013. He also worked as Network Engineer with Fibernet UK Mrs. Lydia Kiriire Opuru is a Certified Regulator Ltd (1999-2000) and as Testing and Commissioning Engineer with Certification from IP3, the Institute with Marconi Communications (1996 - 1998). Eng. Otogo
11 ANNUAL REPORT 2015 - 16 is fervent about energy economics, power markets, and 22 years of University teaching experience gained at the power generation and transmission security. Islamic University in Uganda and Kyambogo University. She has served on the Board of Directors of Private Sector Ambassador Joan Rwabyomere Development Center Mbale and the Eastern Private Sector Member (October 2015 – to date) Development Center Ltd. She also served on the Board of Governors of various secondary schools. Dr. Kanaabi has Ambassador Rwabyomere is a qualified made several academic and professional presentations Lawyer with LL.B (Hons) from Makerere in the areas of economics, governance, gender, HIV/ University, Master’s Degree in International AIDS, career guidance, project Planning, poverty and Trade and Investment and a Masters development. of Business Administration in Oil and Gas Management. She has a wealth of experience in politics, management, diplomacy, business 2.3 Conduct of Meetings of the Authority and leadership both in the private and public sectors, The Electricity Act, 1999, provides for at least one meeting at national, regional and international levels. She was per month by the Members of the Authority to meet upon Uganda’s High Commissioner to London (2006 – 2013), a request in writing to the Chairperson by at least three of and to Nigeria (2000 – 2005). She has successfully served the five members to discharge ERA’s functions. The Act on the boards of various organizations, including Uganda further provides for meetings of special Committees of the Electricity Board, Civil Aviation Authority, National Enterprise Authority. Corporation, and Women in Diplomatic Service. 2.4 Committees of the Authority Dr. Sarah Wasagali Kanaabi In accordance with Section 13 (1) and (2) of the Electricity Member (October 2015 – to date) Act, 1999, the Authority appointed special Committees to advise on the specialized areas of Human Resource Dr. Kanaabi is a qualified Economist with and Finance and Audit, within the scope of the functions varied experience in administration, of the Authority. Each of the Committees is headed by teaching, research, and policy formulation. a Chairperson and meets on a quarterly basis to make She has trained in various fields including recommendations to the Authority, in line with the respective Economic Planning and policy, financial areas of specialization. modeling for Public-private projects, Governance and enterprise risk management. She has 12 ANNUAL REPORT 2015 - 16 Human Resource Committee Audit Committee of the Authority The Human Resource Committee undertakes the human Good corporate governance practices require that a resource as well as Corporate Governance responsibilities specialized committee of the Board is established to of the Authority, guided by specified Terms of Reference. comprehensively handle governance issues appropriately. The committee is composed of three Non-Executive Section 49 of the Public Finance Management Act, 2015, members. It is chaired by Eng. Fabian Rwamwema Tibeita. which establishes the role of the Audit Committee of the Other members of the Committee are Eng. Joseph Oteng Board further establishes its functions. The functions of the Otogo and Dr. Sarah Wasagali Kanaabi. The Committee Committee include to; made a total of 272 recommendations to the Authority (i) Assist the Chief Executive Officer in carrying out the during the sittings. A total of five meetings were held during oversight responsibilities relating to financial practices, the financial year ended June 2016 as shown in Table 1. internal controls, corporate governance issues, compliance with laws, ethics and audit matters; Table 1: Human Resource Committee attendance (ii) Review the arrangements established by the Chief July August January April May Executive Officer for compliance with regulatory and Members 2015 2015 2016 2016 2016 financial reporting requirements; Eng. Fabian √1 √ √ √ √ (iii) Review the financial statements prepared by the Tibeita Chief Executive Officer to ensure that the disclosure Mrs. Lydia √ √ in the financial statements is adequate and that fair Opuru representation is achieved; Eng. Joseph √ √ √ √ Oteng Otogo (iv) Facilitate risk assessment to determine the amount Dr. Sarah of risk exposure of the assets of the Authority and Wasagali √ √ the possibility of loss that may occur, with a view to Kanaabi mitigating risks; and, (v) Consider the reports submitted by the Internal Auditor to the Chief Executive Officer under Section 48 and make recommendations on the findings of 1 √ One Meeting attended, √√ Two meetings attended, √√√ Three meetings attended the Internal Auditor. The Chief Executive Officer shall
13 ANNUAL REPORT 2015 - 16 report to the Audit Committee the actions taken or Installation Permits Committee planned in response to the recommendations of the Committee. The Authority in April 2002 established a special Committee to operationalize the requirements of Section 88 of the During the review period, the Committee held six (6) Electricity Act. This section of the Act provides that no person meetings as shown in table 2. The decisions of the Audit shall install any electrical wiring or extension to existing wiring Committee are recommended to the main Board for on any premises without first obtaining an installation Permit consideration. issued by the Authority. Table 2: Audit Committee Sittings The Committee is composed of six (6) members. ERA July August November January April provides the Chairmanship and Secretariat services to this Members 2015 2015 2015 2016 2016 Committee while the other four (4) members are seconded Dr. by key stakeholder groups. The stakeholders on this Muhammad - Committee include Distribution Companies (represented by Serunjogi Umeme Limited), the Engineers Registration Board, Uganda Mrs. Lydia √√ √ Consumer Protection Association, and Vocational Training Opuru Institutes. Eng. Joseph √√ √ √ √ Oteng Otogo During the review period, the Committee held 28 (twenty Amb. Joan eight) meetings. At these meetings, a total of 494 electricians √ √ √ Rwabyomere were interviewed and 373 were certified as wiremen Eng. Fabian following successful interviews. √ √ √ Tibeita The Committee conducted six (6) sensitization drives aimed at educating the masses on the need for certification of In July 2015, there were two meetings because the wiremen. The sensitization drives were in form of radio talk Committee was required to approve the financial report for shows, training workshops, and installation spot checks to the Authority and the Audit Charter which had been passed monitor the performance of the certified electricians. in accordance with the Public Finance Management Act (PFMA, 2015).
14 ANNUAL REPORT 2015 - 16 Grid Code Committee 2.5 Authority Meetings and Decisions The Grid Code Committee assists the Authority in fulfilling its In accordance with Section 12 and the First Schedule of the functional responsibilities with regard to the Electricity Grid Act, the Authority members conducted meetings at least Code. This Committee is responsible for regularly reviewing once in every month to discharge their duties. With the the Grid Code, submitting to ERA recommendations on exception of two (2) meetings, the Chairman presided over amendments to the Grid Code, issuing guidance on the the meetings of the Authority. Four (4) special meetings were interpretation, implementation and performance of the Grid held during the year with two of them in the month of July Code, and considering desirable or necessary changes to 2015 to complete the recruitment of the Director Financial the Grid Code. The Committee that has representatives of Services. The attendance of the Authority meetings is the system operator, generation and distribution licensees, indicated in Table 3: special interest groups and the Uganda Institution of Professional Engineers is chaired by the Director of the Technical Regulation Department, ERA. During the FY 2015/16, the Grid Code Committee held two (2) meetings.
Table 3: Authority Meetings attendance
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Members -15 -15 -15 -15 -15 -15 -16 -16 -16 -16 -16 -16 Mr. Richard Santo Apire √√√ √ √√ √ √ √ √ √ √√ √ Eng. Fabian Rwamwema Tibeita √√√ √ √√ √ √ √ √ √ √√ √ √ Dr. Muhammad Serunjogi Mrs. Lydia Opuru √√√ √ √√ Eng. Oteng Otogo √√√ √ √ √ √ √ √ √ √ Amb. Joan Rwabyomere √ √ √ √ √ √√ √ √ Dr. Sarah Wasagali Kanaabi √ √ √ √ √ √√ √ √
15 ANNUAL REPORT 2015 - 16 In accordance with Section 15 (1) (a) of the Electricity Act, 1999, the Authority made 1571 decisions during the year under review. The decisions related to tariffs, licensing, and compliance monitoring as well as administrative issues. Of the 157 decisions, only one decision was appealed and is pending the decision of the Electricity Disputes Tribunal. Figure 1 shows the number of decisions made per month.
Figure 1: Authority Decisions per Month
1 See Appendix 1 for the Business considered by the Authority in FY 2015/16.
See App
16 ANNUAL REPORT 2015 - 16 3.0 POWER SUPPLY SECURITY AND SUSTAINABILITY
In continuing its efforts to increase electricity generation to 3.2 Projects under Development meet present and future demand, ERA during FY 2015/16 supported both private and public sector investment in During the Financial Year 2015/16, the Authority licensed the ESI. Mainstreaming of environmental concerns into the eleven (11) projects with a combined capacity of 108.5 MW. operations of the ESI was another priority of the Authority for The issued licenses will enable the intending developers to the period under review. In undertaking these endeavours, construct power plants, generate and sell electricity to the the Authority registered the following progress; National Grid. Table 4 shows the projects licensed during the period July 2015 to June 2016.
3.1 Electricity Generation Table 4: Licensed Projects in the FY 2015/16
The installed generation capacity of Uganda, during the Capacity No. Project Name Company Technology review period stood at 863.6 MW. As observed in Figure 2 (MW) below, power generation in Uganda is largely dependent Soroti Grid Access Uganda on hydropower whose contribution to the generation mix 1 Connected Solar PV Solar 10 Solar Ltd. stood at 80% during FY 2015/16. project Tororo Grid Tororo North 2 Connected Solar PV Solar 10 Solar Ltd project Xsabo Grid Mss Xsabo 3 Connected Solar PV Solar 20 Power Ltd project Xsabo Wind Power Mss Xsabo 4 Wind 20 project Power Ltd Mayuge Bagasse Mayuge Sugar 5 Bagasse 9.2 Project Industries Ltd Ndugutu Power Sindila Hydropower 6 Company Hydro 5.3 Project Limited Nyagak III Genmax 7 Hydro 5.5 Figure 2: Generation Mix of Uganda Hydropower Project Nyagak Limited
17 ANNUAL REPORT 2015 - 16 Capacity Table 5: Projects under construction No. Project Name Company Technology (MW) Capacity Kyambura No. Project Name Company Technology 8 Ziba Ltd Hydro 7.6 (MW) Hydropower Project Africa EMS Nyamwamba Nkusi Hydropower PA Technical 1 Nyamwamba Hydro 9.2 9 Hydro 9.6 Hydropower Project Project Services Ltd Ltd Ndugutu Hydropower Ndugutu Power Rwimi EP 10 Hydro 4.8 Rwimi Hydropower Project Company Ltd 2 Company Hydro 5.5 Project Limited Bukinda Hydropower Timex Bukinda 11 Hydro 6.5 Siti I Hydropower Elgon Hydro Siti Project Hydro (U) Ltd 3 Hydro 5.0 Project (Pvt) Limited Total 108.5 Waki Hydropower Hydromax 4 Hydro 4.8 Project (Nkusi) Limited Muvumbe Muvumbe 5 Hydro 6.5 3.3 Licensed Projects under construction Hydropower Project Hydro (U) Ltd Lubilia During the period, nine (9) projects with a total installed Lubilia Hydropower 6 Kawembe Hydro 5.4 Project capacity of 98.0 MW commenced construction. It is Hydro Limited notable that the projects that commenced construction Soroti Grid Access Uganda were licensed before FY 2015/16, save for the 9.6 MW Nkusi 7 Connected Solar PV Solar 10.0 Solar Ltd Hydropower Project. Table 5 provides an elaboration of the project projects under construction. Achwa II Hydropower 8 ARPE LTD Hydro 41.0 Project Nkusi Hydropower 9 PA Technical Hydro 9.6 Project Total 98.0
18 ANNUAL REPORT 2015 - 16 3.4 Special Projects under Development 3.6 Electricity Transmission
During the year under review, Karuma Hydro Power Project Projects to Improve Reliability and Availability of (600 MW) was under construction together with Isimba Hydro the High Voltage (HV) network Power Project (183 MW). These projects were implemented under a directive from the Government of Uganda. The Electricity Regulatory Authority during the 2015/16 Financial Year continued to monitor UETCL in the By the end of the Financial Year, the projects had advanced development of the following projects aimed at improving towards achieving Financial Close. on the reliability and availability of the High Voltage network:- 3.5 Projects at Feasibility Study (i) The 260 km 132kV Tororo - Opuyo transmission line, The Authority, during the reporting period, issued six (6) funded by the African Development Bank (AfDB). This line Permits with a combined proposed installed capacity of 81 will improve reliability and availability of power in Northern MW. The additional six Permits brought the total number of and Eastern Uganda. It is expected that construction of this projects at Feasibility Study stage to twenty nine (29) with a line shall be accomplished by June 2019; combined proposed installed capacity of 615 MW. Of the twenty nine (29) proposed projects, twenty four (24) are (ii) The 234 km 220kV Nkenda - Fort Portal - Hoima Hydropower projects, three (3) are Biomass projects, one transmission line which is expected to increase transmission (1) is a Wind power project, plus a Grid-connected Solar capacity and contribute to the evacuation of power plants Photo Voltaic project. in Hoima District. This project is funded by the Kingdom of Norway and is expected to be commissioned by December The largest project at Feasibility Study stage is the proposed 2018; 392 MW Oriang Hydropower Project that is being developed by Mota Engil Africa Limited. (iii) The 160 km 132kV Mbarara - Nkenda transmission line funded by AfDB. The line will improve reliability and availability of power in Western Uganda. Completion of the project is expected by December 2017; and,
(iv) The 132kV 100 km Opuyo - Moroto transmission line and substation which will extend power to the Karamoja region. Funding for the project is from the Islamic Development 19 ANNUAL REPORT 2015 - 16 Bank. The line is expected to be accomplished by June expected to be accomplished by June 2018. 2019. Regional Interconnections Projects for Evacuating Power Plants UETCL is undertaking the following projects to promote (i) The 378 km 400kV Karuma interconnection project. power trading and improve security of supply within the Financing for the project was secured from the China region: Exim Bank; Sino Hydro was contracted to construct this (i) Karuma - Nimule (Uganda) - Juba (South Sudan) transmission line, with works expected to be completed in 400kV line of 190 km to Nimule. This will interconnect Uganda June 2018. The line shall evacuate power from the proposed and South Sudan. UETCL is currently sourcing financing for 600 MW Karuma Hydropower plant which is currently under the project; construction; (ii) Masaka - Mutukula (Uganda) - Mwanza (Tanzania) (ii) The Isimba interconnection project for which 220kV transmission line of 82 km. The project is currently financing has been sourced from the China Exim Bank under feasibility study and will be funded by the East African will evacuate the proposed 183 MW Isimba Hydropower Community (EAC). This will interconnect Uganda and project. Construction works are being undertaken by Tanzania. Procurement of the implementation contractor China CAMC Engineering Co. Limited, which anticipates to is on-going with works expected to be accomplished by complete the works in June 2018; December 2019. (iii) The 10 km 400kV Ayago interconnection project. This (iii) Nkenda - Mpondwe (Uganda) - Beni (Democratic project is currently under feasibility study with funding from Republic of Congo) 220 kV of 72 km. This project is under the China Exim Bank. The line is expected to evacuate the feasibility study through funding by the Kingdom of Norway. proposed 680 MW Ayago Hydropower plant; and, It will interconnect Uganda with the Democratic Republic (iv) UETCL has also initiated the implementation of of Congo. It will be implemented through the regional transmission line projects covering a total length of umbrella bodies, that is, the Nile Equatorial Lakes Subsidiary approximately 340 km. The projects will evacuate the 83 Action Plan (NELSAP), EAC and the East African Power Pool MW Achwa I and II Hydropower projects in Gulu District (EAPP). and the 54 MW Hydropower projects in Isingiro District in (iv) Mbarara - Mirama (Uganda) - Birembo (Rwanda) addition to an estimated 40 MW expected to be generated 220kV transmission line of 66 km. This project is funded by from projects in the Mt. Elgon region. These projects are
20 ANNUAL REPORT 2015 - 16 JICA and AfDB and will interconnect Uganda and Rwanda. The Quality of Service standards became effective on 1st Completion of the project is expected by end of 2017. January, 2015. Since then, the Authority has monitored the performance of licensees through reports submitted on a (i) Bujagali - Tororo (Uganda) - Lessos (Kenya) 220kV quarterly basis. transmission line of 127 km length. The line is financed by AfDB and JICA. Works on the line are being undertaken During the period under review, the Authority reviewed by Jyoti Limited and Isolux. This line will interconnect two (2) quarterly submissions of Quality of Service (QoS) Uganda and Kenya and it is expected to be completed indicators for five (5) licensees out of the ten (10) licensees. by December 2018. Reviews were done for Umeme Ltd, Ferdsult Engineering Services Ltd (FESL), West Nile Rural Electrification Company 3.7 Quality of Service (WENRECo), Kyegegwa Rural Electric Cooperative Society Through a consultative process, the Authority developed (KRECS) and Kalangala Infrastructure Services (KIS). The and implemented Quality of Service (QoS) Standards for reason for none submission of reports by the other five (5) distribution licensees. The standards aim at improving the licensees was lack of understanding of the inputs to the quality of service that the licensees offer to consumers indicators. The Authority clarified the input requirements through monitoring the minimum level of performance with with the licensees. Going forward, licensees are expected regards to the following parameters; to report fully on QoS standards.
a) Access to supply (the time taken to connect new customers to electricity); 3.8 Energy Efficiency b) Billing; As part of its Demand Side Management (DSM) strategy, c) Disconnection and reconnection; the Authority, in partnership with the Ministry of Energy d) Responsiveness of the Call centre; and Mineral Development and Umeme Limited, rolled out e) Response to emergency complaints; the distribution of free Light Emitting Diode (LED) bulbs to f) Metering; and, consumers, at a cost of US$ 4.1 Million. Following the rollout g) Network operations in terms of outages and which commenced in June 2015, 140,000 consumers in notifications. Kampala and surrounding areas benefitted from the project that targets to distribute a total of 420,000 LED bulbs which will in turn reduce electricity consumption at peak time by 30 MW.
21 ANNUAL REPORT 2015 - 16 The DSM strategy generally aims at reducing the demand 11) Upgrade of the Namunkekera Industrial Park for electricity by consumers and shifting the time within interconnection line; which electricity is used, from peak to off-peak periods2. 12) Construction of the Sebitoli Research Camp – Kibale Other initiatives under the strategy include Time of Use National Park line; pricing for commercial/industrial consumers, energy audits 13) Rehabilitation of the Lugogo – Kibuli feeder; of industrial operations, and creating consumer awareness 14) Rehabilitation of the Gaba – Kansanga feeder; on energy efficiency measures. 15) Rehabilitation of the Kireka – Kyambogo feeder; 16) Restoration of the Masaka West – Rakai MV line; 3.9 Improvement of the Distribution Network 17) Restoration of the Lira – Lake Kwania line; Following the approval of the investment plan of Umeme 18) Restoration of the Busunju – Kiziba feeder; Limited by the Authority, the licensee commenced projects 19) Restoration of the Tororo Main – Tororo Rock line; to improve on the reliability and quality of electricity supply. 20) Restoration of the Gulu – Layibi line; Below are some of the major projects that were executed 21) Restoration of the Mityana – Kasanda line; during the 2015/16 reporting period. 22) Restoration of the Entebbe Airport feeder; 1) Construction of Namugongo Substation and the 23) Restoration of the Lugogo – Naguru and Ntinda – attendant integration lines; Bukoto Interconnection lines; 2) Upgrade of Ntinda Substation; 24) Injection of distribution transformers; and, 3) Upgrade of Mukono Substation; 25) New connections. 4) Upgrade of Jinja Industrial Substation; 5) Switch gear replacement at Bombo and Lira In addition to the investments undertaken by Umeme Substations; Limited, the largest electricity distributor, the Government 6) Refurbishment of Magamaga Substation; of Uganda working through the Rural Electrification Agency 7) Upgrade of underground cable works; (REA) implemented a number of projects. These projects 8) Rehabilitation of the Lugogo – Jinja Road – Kireka to are detailed on the REA website: www.rea.or.ug. Portbell line; 9) Rehabilitation of the Mutundwe – Lubowa The regulatory regime allows other licensees to invest in interconnector; the network. However, these companies were not able to 10) Construction of the UETCL – Fortportal Integrating secure financing to invest in the network and as such relied lines; on the network developed by the Government of Uganda through REA and the Development Partners. 2 6:00pm-10:00pm 22 ANNUAL REPORT 2015 - 16 4.0 MONITORING AND ENFORCEMENT OF COMPLIANCE
4.1 Statutory Inspections between ERA and the licensees. Licensees who did not submit compliance statements were issued with compliance The Authority reviewed two (2) quarterly submissions for orders and advised to comply accordingly. It is expected each of the fifteen (15) generating companies and carried that the licensees will fully comply in the next Financial Year. out nine (9) on-site statutory inspections out of fifteen (15). Statutory compliance orders were issued for Kisiizi Hospital Inspections were carried out for; Tibet Hima Mining Co. Ltd, Power Limited, Bwindi Community Power Limited and Bugoye Hydro Limited, Kasese Cobalt Co. Ltd, Kalangala Pamoja Uganda Limited which had not submitted the said Infrastructure Services Ltd, Eco Power Ishasha Ltd, Africa compliance statements. EMS Mpanga, Hydromax Limited Buseruka, Kinyara Sugar Ltd and Nyagak 1. Feedback on the outcomes of the 4.2 Environmental Monitoring and Compliance inspections was provided to each respective licensee. The Authority during the reporting period conducted Under the Transmission segment, the Authority reviewed environmental reviews for Permit and License applications. four (4) quarterly submissions from UETCL and carried out Environmental analysis of six (6) Permit and thirteen (13) one (1) on-site statutory inspection of the transmission lines License applications was conducted. The analysis formed and substations to ascertain the network status and the part of the basis for the Authority’s award of the respective status of the licensee’s compliance with the License terms Permits and Licenses. All the thirteen (13) License applications and conditions. A report was issued and feedback on the complied with the environmental requirements and outcome provided to UETCL. were subsequently cleared by the National Environment In the Distribution segment, the Authority reviewed two Management Authority (NEMA). (2) quarterly submissions by the licensees. Two (2) on- In addition, the Authority monitored licensees’ compliance site statutory inspections of Distribution companies were to environmental requirements at the development and undertaken for WENRECo and PACMECS. During the 2015/16 operational stages of Power Projects. During the year Financial Year, emphasis was placed on thorough off-site under review, the Authority received and reviewed seven analysis which would then inform the on-site inspection. (7) Environmental Impact Assessment scoping reports Furthermore, the Authority received and reviewed four and Terms of Reference statements from NEMA. In the (4) compliance statements for 2015/16. These were for same period, Ten (10) Environmental Impact Assessment Umeme Limited, WENRECo, UEDCL and FESL. Feedback on study reports received from NEMA were considered by the review of the compliance statements was given to the the Authority. These reports were part of the results of respective licensees and action plans were agreed upon Feasibility Studies conducted by developers. Furthermore, 23 ANNUAL REPORT 2015 - 16 the Authority reviewed twenty (20) offsite and fourteen (14) onsite quarterly monitoring reports submitted by Licensees. The Authority shared these Environmental Assessment report findings with NEMA to ensure that licensees complied with the NEMA standards. The Authority was awarded a certificate of recognition by the National Environment Management Authority. The Authority’s good performance on environmental issues has been enabled by strong collaboration between ERA and NEMA and the Directorate of Water Resources Management (DWRM). By the close of the FY 2015/16, the Authority was in advanced stages of signing a Memorandum of Understanding (MOU) with National Environment Management Authority and Directorate of Water Resources Management (DWRM) which was aimed at further strengthening the collaboration. ERA plans to continue holding meetings with her partners on environmental issues, including the Uganda Wildlife Authority (UWA) and National Forestry Authority (NFA).
The ERA Board during a Statutory Inspection of Tibet Hima Mining Co. Ltd in Kasese District. 24 ANNUAL REPORT 2015 - 16 5.0 PERFORMANCE OF THE ELECTRICITY SUPPLY INDUSTRY
5.1 Loss Reduction The Energy Losses on the Umeme grid averaged at 19.%3 in the year 2015/16 against the targets of 18.3% in 2015 and 16.9% in 2016. The energy loss performance fell short of the 2014/15 levels which stood at 19.1%. The Authority has continued to approve investments into the network aimed at reducing losses.
5.2 Energy Purchases and Sales by UETCL
During the year under review, UETCL purchased a total of 3,422.61GWh of energy from different power generation companies. This amounts to a 4.6% increase from 3,273GWh purchased in the FY 2014/15. The energy purchase costs, on the other Figure 3: Sales by UETCL for the years 2014/15 hand, increased by 14% from UGX 715,483 Million in FY 2014/15 to UGX 816,667 Million in FY 2015/16. As was the case in FY 2014/15, energy sales by UETCL to Energy sold by UETCL to Umeme Limited, other distribution Umeme Limited accounted for 94% of the total energy licensees and energy exported increased by 4% from 3168 sales in 2015/16. The sales to Umeme increased by 4% from GWh in 2014/15 to 3,295 GWh in 2015/16. 2,986.4 in 2014/15 to 3,107.2% in 2015/16. On the other hand, energy sales by UETCL to other licensees totaled 50.8 GWh. This represents an increase of 20% from sales of 42.4 GWh in the FY 2014/15. In 2015/16, UETCL sold a total of 136.9 GWh to other countries compared to138.9 GWh in 2014/15, representing a reduction of 1% in export energy sales.
3 Analysis of loss performance calculated on a FY basis against the regulatory targets should be adjusted since targets are based on calendar year period 25 ANNUAL REPORT 2015 - 16 5.3 Energy sales by Distribution Companies
During the period under review, the end-user energy sales by distribution companies amounted to 2,534.7 GWh which is a 5% increase from the 2,417.2 GWh sales for the FY 2014/15. Out of the 2,534.7 GWh sold in 2015/16, Umeme sold 2,486.2 GWh accounting for 98% of the total energy sales by distribution licensees. The sales in 2015/16 by Umeme represented a growth in sales of 4% from 2,381.3 GWh in 2014/15. In monetary terms, the sales by Umeme Limited amounted to UGX 1,394 Million in 2015/16 compared to UGX 1,023 Million in FY 2014/15. Figure 4: Growth (%) in sales by distribution licensees The sales by other distribution licensees (including; PACMECS, KIL, BECS, WENRECo, UEDCL, FESL, KRECS, KIS) in 2015/16 amounted to 48.5 GWh representing a sales growth of 34%, from 35.8 GWh in FY 2014/15. Most distribution companies experienced growth in energy sold. Specifically, the energy sales by KIS and UEDCL grew by over 100% in FY 2015/16 compared to FY 2014/15. The sales by UEDCL grew by 146% while for KIS, the sales grew by 924%. The sharp growth in sales by UEDCL is explained by the fact that UEDCL’s operation in most service territories begun in the year 2015/16. Similarly, KIS commissioned a Solar Plant towards the end of FY 2014/15 thus boosting KIS’ sales in the review period. The growth in energy sales by other distribution companies is shown in Figure 5. Figure 5: Energy sales by other licensees (excluding Umeme)
26 ANNUAL REPORT 2015 - 16 5.4 Customer connections
Accelerating access to electric energy is an overriding policy objective of the Authority in line with the wider Government strategy to promote clean energy use and a driving force for achieving middle income status. Total consumer connections had accumulated to 925,597 at the end of FY 2015/16 compared to 765,230 at the end of FY 2014/15. This amounts to 211,841 new connections in the year 2015/16, representing 29.7% growth in customer connections. The number of customers connected on the Umeme network grew from 713,756 to 860,563 representing a 20% growth in customer numbers. A detailed presentation of customer numbers served by other distribution licensees is shown in Figure 6.
Figure 6: Number of customers by Distribution Licensee The Energy Minister, Hon. Eng. Irene Muloni, launches the LED Bulbs Project.
27 ANNUAL REPORT 2015 - 16 6.0 SECTOR INVESTMENTS
6.1 Approved Investment Plans transparent manner and involved the desk review of all the documents and a field verification. The Authority in FY 2015/16 reviewed investment plans for Umeme Limited and Eskom Uganda Limited. Umeme’s In the period under review, the company submitted for investments targeted critical and emergency areas verification US$78.0 Million out of the US$80 Million worth of that covered load growth, loss reduction, and system investments approved in 2015. Once these investments are improvements to be carried out in 2015 and 2016. The approved, Umeme starts to earn a return on Investment. approved Umeme investment plans for 2015 amounted The audit was conducted and an approval of US$51.6 to US$ 79.9 Million and UGX 550 Million (US$0.2 Million). The Million granted. Completed investments for 2015 whose completed investments from this plan were audited in 2016 investment plan had been approved by the Authority in for a Return on Investment. In January 2016, the Authority 2014 and the investments undertaken by Umeme without approved an investment plan of US$104.8 Million for that prior approved investment (retrospective investments) in year. 2014, were under verification to be completed by the first quarter of the year 2016/17. Furthermore, the Authority approved investments totaling to US$ 3.7 Million for Eskom Uganda Limited, targeted towards At the end of the Financial Year 2015/16, the Authority the refurbishment and replacement of obsolete equipment had approved a total of US$290 Million into the Electricity at both the Kiira and Nalubale Power Stations. Industry. Table 6 shows the approved investments into the Industry from July 2005 to June 2016. Approvals were also made for WENRECO to construct stores and refurbish the Thermal Power Plant. Investments for FESL await the amendment of the Licenses held by the licensee to allow the company to invest in the network and earn a return through the tariff.
6.2 Audit of Completed Investments
The Authority conducted technical audits of Umeme’s 2015 completed investments in accordance with the Investment Plan and Approval Guidelines, 2013 and the Electricity (Tariff Code) Regulations, 2003. The audit was done in a
28 ANNUAL REPORT 2015 - 16 Table 6: Investments approved by the Authority for Umeme Table 7: Investments approved by the Authority for the Limited Sector
Category 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total SUMMARY OF COMPLETED AND APPROVED INVESTMENTS[1] 2005-2015 US'000 USD USD USD USD USD USD USD USD USD USD USD USD Management Information System - - - 3,922 3,605 73 61 - - - - 7,661 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Computers and Peripherals 790 274 216 3,675 413 348 315 - - - - 6,031 Amount Communication Equipment 197 509 425 29 22 11 251 - 286 - - 1,730 US$ M US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Vehicles 1,205 156 3,507 1,324 1,868 954 898 - - - - 9,913 Umeme Tools and Equipment 701 489 371 757 1,027 468 219 - - 722 11,360 16,114 System improvement 1,571 441 8,650 8,229 13,439 11,879 11,456 5,474 61 142 7,415 68,758 Submission 10.6 6.3 17.4 27.5 29.9 26.1 27.1 37.4 51.3 92.6 72.6 No Pole and One Pole Services 2,005 1,538 1,599 3,097 4,592 11,784 8,100 6,427 8,508 10,127 13,432 71,208 Eskom Substations (New, Interconnecting Lines Submission 4.6 1.7 1.6 0.2 1 1 1.3 0.8 2.7 3.5 1.7 & Upgrades) 140 412 683 494 4,292 - 1,623 3,017 14,194 18,393 21,527 64,775 Approved Furniture and Fittings 235 11 33 114 29 61 21 - - - - 503 by ERA 12.2 7.9 18.8 17.6 18.4 19.9 26.5 26 40.9 49.3 69.7 Building and Infrastructure 146 90 66 1,219 582 826 152 - - - - 3,081 Disallowed Repairs and Maintance qualifying for by ERA 3 0.1 0.1 10.1 12.5 7.3 1.9 12.1 13.2 47.6 4.6 ROI (poles + Trasnformers) 2,190 2,399 2,122 4,481 - - - 3,521 - - - 14,714 Goodwill on concession takeover 1,400 ------1,400 Approved Investment Appeals - - - - - 3,456 - 3,680 2,789 4,966 12,353 27,244 Total 12.2 20.1 38.9 56.5 74.9 94.8 121.3 147.3 188.2 237.5 307.2 Total Umeme Investment submission for10,581 ROI 6,319 17,672 27,492 29,887 29,596 27,134 37,356 51,348 92,589 72,564 402,539 ERA allowed after verification 7,629 6,170 17,279 17,348 17,429 18,862 25,234 25,219 39,491 49,660 66,087 290,409 5[1] Amounts approved in a calendar year Discounted/Disallowed by ERA 2,952 149 393 10,144 12,458 10,734 1,900 12,137 11,857 42,929 6,477 112,130 - - - - 6,241 ------Cumulative ERA allowance 7,629 13,799 31,078 48,426 65,855 84,718 109,952 135,171 174,662 224,322 290,409 290,409 With regard to grid extensions of utilities beyond the one (1) km footprint, the Authority received and approved With respect to Investments for Eskom Uganda Limited, the nine (9) grid extension applications from Umeme Ltd. ERA Authority verified completed investments undertaken by engaged a consultant to complete technical audits on the the Company for the years 2014 and 2015. conversion of the Ishasha Hydro Power Plant and a final Further technical audits were conducted for UETCL to report was submitted. The findings of the report are awaiting inform their current compliance status to the license terms stakeholder consultations and recommendations. and conditions. The final verification reports were expected In this reporting period, the investments approved targeted before the end of Quarter two of the next financial year loss reduction and load growth. The activities undertaken 2016/17. include substation upgrade, pole replacement, new connections and feeder refurbishments. Table 2 shows some of the major investment categories approved.
29 ANNUAL REPORT 2015 - 16 7.0 CONSUMER PROTECTION
In accordance with Section 79 (3) of the Electricity Act, 1999, ERA is required to handle unresolved complaints made by electricity consumers in relation to electricity services provided by utility companies; and to improve handling of complaints among the distribution licensees with emphasis on efficiency, effectiveness, objectivity, fairness, consistency and transparency. In the FY 2015/16, ERA received and resolved a total of 231 complaints from electricity customers served by the different distribution companies. The complaints received related to estimated or inaccurate meter readings, fraud billing, service interruptions, disconnections, and way leaves/trespassing among others. Largely, the complaints received by ERA were unresolved disagreements between Figure 7: Complaints registered by ERA during FY 2015/16 consumers and distribution utility providers.
In comparison to 2014/15, there was a decrease in the In the review period, ERA diversified its means of being number of complaints registered, from 242 to 231. This accessed by consumers with complaints, by activating reduction is attributed to the distribution utility providers’ a Facebook account, a Twitter handle and acquiring effort to resolve electricity consumers’ concerns/complaints a dedicated WhatsApp line - 0776188188. These three quickly, reducing the need for escalation of complaints to platforms will supplement the already existing means by ERA. which consumers can reach ERA and have their complaints/ concerns attended to. The Authority also made significant improvements with regard to the complaints management processes by ensuring that complaints were acknowledged and forwarded to the respective licensees for response within a specified timeframe as per the institutional Standard Operating Procedures.
30 ANNUAL REPORT 2015 - 16 7.1 Public Outreach The Authority also carried out awareness activities in Taxi Parks, Bus Parks, Markets, and Primary Schools and shared Electricity Regulatory Authority carried out a number of close to 30,000 pieces of IEC materials. outreach and awareness activities in 2015/16 aimed at Further to the face-to-face outreach events, the Authority growing consumer knowledge and awareness of the ESI. created public awareness and sensitization on various Some of the outreach activities included exhibitions at local issues through television and radio stations under the free and national events, schools, and markets. The outreach Government airtime program. As part of this program, ERA events carried out in the FY included: featured on Akaboozi Ku Bbiri FM, CBS FM, Radio Sapientia, 1. The 3rd Small and Medium Enterprises and Cottage Channel 44 TV, Star TV, Voice of Africa Radio, Radio Bilal, Industry Fair held at the UMA Conference Hall Parking and Innerman Radio in Kampala District as well as Radio Grounds in Kampala, from 13th to 16th August 2015. At this Paidha and Radio Ssese in Zombo and Kalangala Districts, event, the Authority shared 2,070 pieces of Information, respectively. Education and Communication (IEC) materials with over 200 people who visited the ERA stall. ERA was one of the main sponsors of the exhibition that attracted both local and international exhibitors and was recognized with a Certificate of Appreciation.
2. The Energy Efficiency Campaign held at Rippon Gardens in Jinja Town from 3rd to 6th December 2015. The IEC materials shared with consumers covered energy efficiency, consumer rights and obligations, Quality of Service Standards and the complaints handling procedures. 3. The 7th UMA Western Region Trade Fair held at Kakyeka Stadium in Mbarara Town from 2nd – 6th June 2016, where ERA interacted with over 300 people and shared over 6000 pieces of IEC materials. ERA staff attend to guests during the Energy Week. 31 ANNUAL REPORT 2015 - 16 8.0 EXTERNALLY FOCUSED ACTIVITIES
8.1 Stakeholder Engagement the project affected persons. The Authority held Public Hearings in respect of the following: In living one of its Core Values – Stakeholder Sensitivity, the Authority undertook a number of initiatives that promoted 1. Application for a License by Ndugutu Power Company participation and involvement of stakeholders in ERA’s Ltd for the generation and sale of 4.8 MW of electricity decision-making process. from a Hydropower plant on River Ndugutu in Bundibugyo District. 2. Application for a License by PA Technical Services for Public Hearings the generation and sale of 9.6 MW of electricity from a Hydropower plant on River Nkusi in Hoima District. 3. Application for a License by Tororo PV Power Company Limited for the generation and sale of 50 MW of electricity from a Solar PV Plant to be established at Kasipodo ‘B’ Village, Osukuru Sub-County in Tororo District. 4. Application for a License by Timex Bukinda Hydro (U) Limited for generation and sale of 6.5 MW of electricity from a Hydropower plant on River Nkusi in Kibaale District. 5. Application for a License by Mayuge Sugar Industries Limited for the generation and sale of 23 MW of electricity from a Bagasse Co-generation Power Plant in Mayuge District. 6. Application for a License by Ziba Limited for the generation and sale of 8.3 MW of electricity from a Hydropower plant on River Kyambura in Rubirizi District. The Financial Year 2015/16 was a landmark year for 7. Application for a License by Mahoma Uganda Limited Renewable Energy development. A number of projects for the generation and sale of 2.7 MW of electricity completed the required feasibility studies and subsequently from a Hydropower plant on River Mahoma in Kabarole applied for Licenses to construct power plants, generate and District. sell electricity to the national grid. The License application 8. Application for a License by GRS Commodities Ltd for processes were concluded with stakeholder engagement the generation and sale of 10 kW of electricity from a through public meetings that involved consultations with Solar Photo Voltaic off-Grid power system on Kitobo
32 ANNUAL REPORT 2015 - 16 Island, Kalangala District. 9. Application for a License by MSS Xsabo Power Limited for the generation and sale of 20 MW of electricity from a Solar Photo Voltaic plant in Kabulasoke, Gomba District. 10. Application for a License by UEGCL for the generation and sale of 5.5 MW of electricity from a Hydropower plant on River Nyagak, Paidha Sub-County, Zombo District. 11. Application for a License by Elemental Energy Limited for the generation and sale of 7 MW of electricity from a Hydropower plant on River Kaku, Busanza Sub-County, Kisoro District. Panel discussants at the GET FiT Forum.
Further to the above, the Authority held a Public Hearing in December 2015, in respect of the applications by Umeme The GET FiT Forum Ltd, UEGCL, UETCL, UEDCL and Eskom Uganda Limited for In the review period, the Electricity Regulatory Authority the review of tariffs for the Tariff Year 2016, as stipulated in hosted a Forum for stakeholders to review the implementation the provisions of their licenses. The Authority considered the of the Global Energy Transfer for Feed-in-Tariffs (GET FiT) comments made by the stakeholders at the Hearing in the program, to draw lessons learnt and discuss broader sectoral process of determining the tariff for the Tariff Year 2016. impacts and prospects such as the future of private sector development and investment into Renewable Energy in Consultative meetings Uganda. Other engagements included dialogues with the different stakeholder groups including the Maize Millers under their Since its inception in 2013, the GET FiT Uganda program has umbrella association, Lubaga Grain Millers’ Association facilitated the implementation of small-scale Renewable on matters related to quality of service and metering. Energy projects promoted by the private sector in Uganda. The Authority also had engagement with the Uganda GET FiT works in a way that small-scale renewable energy Manufactures Association on aspects of the Annual and generation projects in advanced planning stages and with Quarterly tariff reviews and adjustments; as well as the a valid development permit from the Electricity Regulatory Media for continued awareness of Authority decisions and Authority, apply for top–up premium payments through activities. participation in competitive Request for Proposals and the subsequent evaluation process. 33 ANNUAL REPORT 2015 - 16 The top–up Premium Payments applied for by private developers 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 0.5-2.0 US cents per kilowatt hour to the project developers in addition to the relevant Renewable Energy Feed-in-Tariffs (REFiT) determined by the Electricity Regulatory Authority. After final funding commitments were made this Financial Year, the facility now supports a combined total of 18 small Hydro, Solar and Bagasse projects with a cumulative capacity of 165 MW. These projects are under construction The launch of the ERA new corporate identity. or in the final stages of achieving Financial Close. The GET FiT Forum hosted domestic and international Industry stakeholders, beneficiaries, and supporters interested in out in the organization’s Vision and Mission statements, reviewing the program’s implementation since inception. while also marking out the necessary internal and external communication changes required to project the desired 8.2 ERA PROFILING corporate attributes to ERA’s stakeholders.
Rebranding of ERA The New ERA Logo The Old ERA Logo In May 2016, the Authority launched a new corporate identity following its rebranding process. The process that began in August 2014 with a brand audit aimed at drawing out the Authority’s position as the regulator of the Electricity Supply Industry in Uganda, by harmonizing and clarifying ERA’s ‘visual voice’. The rebranding exercise included the development of a suitable visual representation of the organization (the logo and corporate colors) that reflects ERA’s ambition as set
34 ANNUAL REPORT 2015 - 16 Table 8: ERA’s Awards and Recognitions
Award Awarding Institution 1. Recognized for contribution to advancing United Nations access to affordable, reliable, sustainable Department for and modern energy for all Economic and Social Affairs (UN- DESA) 2. Uganda was rated 3rd in Africa, and 9th Bloomberg New among 55 emerging economies in Africa, Energy Finance Asia, Latin America and the Caribbean in (BNEF) recognition of the success of the GET FiT Project 3. Finalist for “Regulator of the Year EnergyNet, UK ERA staff receive an Award on behalf of the Authority. Award for Excellence” in recognition of its exceptional role in creating an environment that meets the needs of Awards and Recognitions investors in the ESI 4. Recognized for exemplary contribution to National Since its inception, the Authority has executed its mandate Environmental Management Environment with an overall goal of boosting the efficiency of the Electricity Management Authority (NEMA) Supply Industry in Uganda. As a result, ERA has registered 5. Uganda Sustainable Development Award Public Opinions several milestones that earned it local and international in recognition of ERA’s contribution to International acclaim during the review period, as enumerated in Table Social-Economic Development and 8. Commitment to attainment of Uganda’s Vision 2040 and the UN Sustainable Development Goals in Uganda 6. Best Employer of the Year 2015 (Public Federation of Sector Category) in recognition of Uganda Employers promoting Staff Learning, Staff Welfare, (FUE) and Performance Management
35 ANNUAL REPORT 2015 - 16 9.0 HUMAN RESOURCE AND ADMINISTRATION
During FY 2015/16, the Chief Executive Officer headed October 2015, Sweden the Secretariat, and was responsible for the day-to- (viii) Advanced Supervisory Skills, October 2015, Nairobi - day management of the affairs of the Authority and Kenya implementation of the decisions of the Board. The Secretariat (ix) Monitoring and Evaluation for Results, September 2015, employed 52 (fifty two) full time staff and two (2) Graduate South Africa Trainees within the departments, namely: Economic Regulation, Financial and Administrative Services, Legal (x) Executive Secretary Management, December 2015, and Authority Affairs, Technical Regulation, and the Chief Nairobi - Kenya Executive Office. (xi) Report writing, June 2016, Uganda Management Institute
9.1 Training and Development (xii) Payables and receivables management
9.1.2 Recruitments in 2015/16 9.1.1 Training of Staff During the Financial Year 2015/16, the Authority enhanced The Authority trained its staff across the different departments its staff compliment through recruitment of six (6) additional in order to enable them ably deliver on ERA’s mandate. The staff as reflected in Table 9. The Authority had a total training areas were as follows: staff compliment of 52 (fifty two) full-time staff and two (2) (i) Climate and Sustainable Energy Finance, July 2015, Graduate Trainees as indicated in Table 10. Frankfurt - Germany Table 9: Staff recruited in 2015/16 Date of (ii) Financial Modelling, July 2015, Kampala - Uganda Designation Department Reporting (iii) Regulatory Governance, October 2015, Kampala - 1. Director Financial Finance and 12/1/2015 Uganda Services Administration (iv) Benchmarking Infrastructure Operations and Energy 2. Financial Analyst Economic Regulation 12/1/2015 Pricing, October 2015, Kampala - Uganda 3. Assistant Financial Finance and 12/14/2015 Analyst Administration (v) GETFIT Tariff Modelling, August 2015, Kampala - Uganda 4. Legal Officer – Licensing Legal and Authority Affairs 4/4/2016 5. Legal Officer – Legal and Authority Affairs 4/4/2016 (vi) New Managers Course, October to November 2015, Compliance Cape Town, South Africa 6. Consumer Affairs Chief Executive Office 5/23/2016 (vii) Efficient Energy use and Planning, September to Assistant
36 ANNUAL REPORT 2015 - 16 Table 10: ERA Staff compliment in 2015/16 team work, and regeneration of staff. Department No. of Staff2 The Authority further organized sensitization for staff on 1. Chief Executive Office 14 health issues that included nutrition, cancer, and Hepatitis B. 2. Technical Regulation 9 Screening and check-up was undertaken for staff, focusing 3. Economic Regulation 6 on malaria, cancer and Hepatitis B. The female staff were 4. Finance and Administration 17 vaccinated against Cervical Cancer. 5. Legal and Authority Affairs 8 Total 54 As part of ERA’s staff Wellness Program, the Authority Promotions continued to subscribe to health clubs where staff accessed facilities for gymnastics, aerobics, and sports, among other As part of the Authority’s Recruitment and Retention services in order to ensure a healthy, revitalized workforce. Policy, promotion of seven (7) staff that arose out of the performance appraisals for the Financial Year 2014/15 9.2 Capital Development (New ERA House) became effective in August 2015. Resignations The Authority evaluated options for additional office In the review period, three (3) staff resigned from the space since the available capacity at ERA was no longer Authority. There are: adequate. ERA initiated the start-up process of construction of the ERA office building beginning with the assessment of (i) Procurement Officer, March 2016 Air Quality and Noise Levels at the proposed office location (ii) Legal Officer – Licensing, December 2015 at Plot 5C, 3rd Street Lugogo Industrial area. The best option recommended was to construct on Plot 5C, 3rd Street Lugogo (iii) Assistant Financial Analyst, August 2015 Industrial Area. The procurement of the Consultant for the detailed design and construction supervision commenced 9.1.3 Staff Welfare and this process would culminate into the award of the In June 2016, the Authority organized a three-day retreat tender to design and supervise the construction of New for staff at the Jinja Nile Resort Hotel. The retreat that run ERA House. The construction is planned to start in 2018 for a under the theme “Teamwork, Integrity, Innovation and period of 3 years. Professionalism” was aimed at promoting bonding, building
2 Inclusive of Interns 37 ANNUAL REPORT 2015 - 16 10.0 FINANCIAL PERFORMANCE
In the financial year under review, the Authority realized amount included the deferred income received (amounts revenues of UGX 15.3 Billion compared to UGX 10.7 Billion received in the year but attributable to the next Financial for the previous Financial Year, representing an increase of Year). The total deferred income (paid and outstanding) 43.6 per cent. The increase in revenues was on account balance at the end of the year was UGX 5.2 Billion. of depreciation of the Uganda Shillings against the United States Dollar, increased energy consumption, prudent There was an increase in the stock of non-current assets treasury management and increased applications for by UGX 5.4 Billion (Gross Values), of which UGX 0.4 Billion Licences from prospective Project Developers. related to the purchase of a motor vehicle, UGX 4.7 Billion and UGX 0.4 Billion related to revaluation of land and License fee revenues continued to dominate other sources buildings and motor vehicles, respectively. The balance of of revenue, contributing UGX 10.3 Billion compared to UGX UGX 0.2 Billion related to purchase of computers, stationery 6.7 Billion realized in 2014/15, representing an increase of and capitalization of works on the construction of a New 53.6 per cent from last year’s performance. House/premises for the Authority. Similarly, during the year, non-current assets of UGX 0.05 Billion relating to old furniture, The expenditure outturn for the year under review was UGX computers and equipment were disposed of. 129 Billion (excluding exchange rate gain and revaluation surplus) compared to UGX 10.8 Billion in 2014/15, representing The realized reserve of UGX 2.6 Billion should be interpreted an increase of 18 per cent. in light of Section 26 of the Electricity Act, 1999. The Authority intends to apply these reserves towards the construction of The financial position of the Authority improved during new office premises. the year closing with a net asset balance of UGX 10.9 Billion (from UGX 3.2 Billion in the previous Financial Year), representing an increase of 243 per cent. This was on account of revaluation of Motor Vehicles worth UGX 0.4 Billion, Land and Buildings of UGX 4.7 Billion, UGX 0.2 Billion in revaluation net exchange gain arising from the revaluation of the receivable, foreign bank balances and the payables, and the end of Financial Year surplus of UGX 2.6 Billion.
The Authority closed the Financial Year ending June 30, 2016 with a total cash of UGX 4.5 Billion held in bank accounts. This
38 ANNUAL REPORT 2015 - 16 11.0 ANNUAL FINANCIAL STATEMENTS
11.1 Management Responsibility Directors of the Authority or its Management that would hinder the Authority’s ability to remain a going concern. The Pubic Finance Management Act, 2015 Section 51 (3) and the Electricity Act, 1999, Cap 145 Section 28 (1) requires the Authority to keep proper books of accounts 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. Accordingly, CHAIRMAN, ERA SECRETARY the Directors of ERA are responsible for the preparation and presentation of the financial statements in accordance with the International Financial Reporting Standards (IFRS).
The Directors are further responsible for ensuring that internal control policies and practices are put in place. This responsibility is ultimately delegated to the ERA Management.
The Directors have put in place internal controls, policies and procedures that enable preparation of Financial Statements that are free from material misstatements whether due to fraud or error. The Directors therefore accept responsibility for this year’s financial statements, which have been prepared based on the reasonable estimates and are in conformity with the International Financial Reporting Standards.
The assessment made by the ERA Directors shows that the Authority will remain a going concern in the foreseeable future. Nothing material has come to the attention of the
39 ANNUAL REPORT 2015 - 16 11.2 Auditor’s Responsibility I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis of our opinion. The responsibility as stated under Article 163 of the Constitution of the Republic of Uganda and Section 13 and 11.3 Opinion 19 of the National Audit Act, 2008, is to audit and express an opinion on the statements based on the audit. I conducted In my opinion, the Financial Statements of the Electricity the audit in accordance with International Standards on Regulatory Authority for the year ended 30th June 2016 Auditing. Those standards require that I comply with the are prepared, in all material respects, in accordance with ethical requirements and plan and perform the audit to the International Financial Reporting Standards (IFRSs) and obtain reasonable assurance that the Financial Statements Section 51 (1) of the Public Finance Management Act, 2015. are free from material misstatements.
An audit involves performing audit procedures to obtain evidence about the amounts and disclosures in the financial ………………………………………. statements as well as evidence supporting compliance John F. S. Muwanga with the relevant laws and regulations. The procedures selected depend on the Auditor’s judgement including the AUDITOR GENERAL assessment of risks of material misstatement of the financial 22nd December, 2016. statements whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of financial statements in order to design audit procedures that are appropriate in the circumstances but not for purposes of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management as well as evaluating the overall presentation of the financial statements.
40 ANNUAL REPORT 2015 - 16 ELECTRICITY REGULATORY AUTHORITY STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2016 2015-16 2014-15 UGX UGX ASSETS Non-Current Assets Non-Current Assets 3 9,087,758,720 3,689,178,658 Current Assets Cash and Bank Balances 4 4,514,836,032 3,387,326,088 Prepayments and Advances 5 1,478,944,102 1,501,168,673 Short-term Investments 6 1,410,503,147 408,876,712 Receivables 7 1,697,155,049 910,736,547 9,101,438,329 6,208,108,021 Current Liabilities Payables 8 1,612,015,944 1,198,284,549 Deferred Income 9 5,205,096,304 5,015,446,545 Payroll & Gratuity Accruals 10 451,573,124 491,288,192 (7,268,685,372) (6,705,019,287) Net Current Assets (Liabilities) 1,832,752,958 (496,911,266) NET ASSETS 10,920,511,679 3,192,267,392 EQUITY AND RESERVES Government of Uganda Equity 280,000,000 280,000,000 General Reserves 20 4,903,466,579 2,279,732,416 Revaluation Reserves 20 5,737,045,100 632,534,977 TOTAL EQUITY AND RESERVES 10,920,511,679 3,192,267,392
………………………………………………. Date………………...... Date……………… For: CHIEF EXECUTIVE OFFICER CHAIRMAN ELECTRICITY REGULATORY AUTHORITY 41 ANNUAL REPORT 2015 - 16 ELECTRICITY REGULATORY AUTHORITY STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED JUNE, 2016
Notes 2015-16 2014-15 UGX UGX REVENUE Licence Fees 10,362,434,264 6,742,414,909 Levy Charges 3,863,761,979 3,275,673,017 Application Fees 682,279,647 325,993,651 Installation Licenses 152,527,839 151,129,500 Rental Income 91,547,085 83,911,798 Other Income 21 144,943,373 72,542,527 REVENUE 15,297,494,187 10,651,665,403 OPERATING EXPENSES Personnel Expenses 13 (7,212,085,521) (5,946,282,776) Board Expenses 11 (336,264,254) (270,335,396) General Administration 17 (1,223,511,652) (925,007,567) Promotion and Advertisements 16 (258,752,841) (228,846,677) Training ,Workshops and Conferences 12 (1,765,944,088) (1,775,888,237) Monitoring and Compliance 15 (477,455,020) (270,374,537) Consultancy fees 14 (464,429,692) (532,956,902) Stakeholder Programmes 19 (796,013,039) (609,488,526) Depreciation 3 (365,212,489) (257,763,435) TOTAL OPERATING EXPENSES (12,899,668,596) (10,816,944,053) Surplus Before Exchange Differences 2,397,825,591 (165,278,650) Foreign Exchange Gain 18 225,908,572 802,336,235 Operating Surplus for the Year 2,623,734,163 637,057,585 OTHER COMPREHENSIVE INCOME Revaluation Surplus 3 5,104,510,123 - TOTAL COMPREHENSIVE INCOME FOR THE YEAR 7,728,244,286 637,057,584
42 ANNUAL REPORT 2015 - 16 ELECTRICITY REGULATORY AUTHORITY STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED JUNE 30, 2016 2015/16 2014/15 UGX UGX Cash Flows from Operating activities Operating Surplus for the period 2,623,734,163 637,057,584 Bad debts Expense 17 288,760,105 - Write-off of books and journals 3 - 19,165,261 Depreciation and software amortization 3 365,212,489 257,880,551 Less: Profit on disposal of NCA 21 (6,770,000) (4,481,020) 3,270,936,757 909,622,376 Changes in Working capital Movement in Prepayments and Advances 5 22,224,571 (269,333,143) Movement in Receivables 7 (786,418,501) 453,505,887 Movement in Payables 8 124,971,290 358,948,925 Movement in Deferred Income 9 189,649,759 2,512,827,844 Increase in Payroll and Gratuity Accruals 10 (39,715,068) (905,964,833) Net Movement in Working Capital (489,287,950) 2,149,984,680 Net Cash in Flows from operating activities 2,781,648,807 3,059,607,057 Cash flows from Investing Activities Proceeds from disposal of NCA 21 6,770,000 4,481,020 Purchase of Fixed Assets 3 (659,282,426) (507,586,099) NET CASH FLOW 2,129,136,379 2,556,501,976 Cash and Cash Equivalents at beginning of the year 3,796,202,800 1,239,700,824 Cash and Cash Equivalents at end of period 5,925,339,179 3,796,202,800 Represented by: CASH AND BANK BALANCE AS AT JUNE 30, 2016 4 & 6 5,925,339,179 3,796,202,800
43 ANNUAL REPORT 2015 - 16 ELECTRICITY REGULATORY AUTHORITY For purposes of the Electricity Act, 1999 and the Public STATEMENT OF CHANGES IN EQUITY AS AT JUNE 30, 2016 Finance Management Act, 2015, the balance sheet has been named as the Statement of Financial Position in these Government General Revaluation Total Financial Statements, and the Revenue and Expenditure Equity Reserves Reserve account is represented by the Statement of Comprehensive Income. UGX UGX UGX UGX Balance as 280,000,000 2,279,732,416 632,534,977 3,192,267,393 at July 01, 2. SIGNIFICANT ACCOUNTING POLICIES 2015 a) Basis of accounting Prior year - - - - adjustments The financial statements have been prepared in accordance Surplus - 2,623,734,163 5,104,510,123 7,728,244,286 with and comply with International Financial Reporting during the period Standards as issued by the International Accounting Balance as 280,000,000 4,903,466,579 5,737,045,100 10,920,511,679 Standards Board (IASB). The financial statements have been at June 30, prepared on the historical cost basis, adjusted for fair values 2016 of some classes of assets. b) Functional and Presentation Currency ELECTRICITY REGULATORY AUTHORITY The financial statements are presented in Uganda Shillings Notes to the Financial Statement for the Financial Year (UGX), which is the Authority’s functional currency. All ended June 2016 financial information presentation in Uganda Shillings has been presented in absolute terms (UGX) except when 1. GENERAL otherwise indicated. The Electricity Regulatory Authority (ERA) is a Statutory Body established by the Electricity Act, 1999, (Chapter 145 of the Laws of Uganda) to regulate the Generation, Transmission, Distribution, Sale, Import and Export of Electrical Energy in Uganda.
44 ANNUAL REPORT 2015 - 16 Newly effective standards
Standards Detailed requirements IFRS 16 Leases Issued in January 2016, IFRS 16 replaces the previous leases Standard, IAS 17 Leases, and related Interpretations. IFRS 16 is effective from 1 January 2019 and an entity can choose to apply IFRS 16 before that date but only if it also applies IFRS 15: Revenue from Contracts with Customers. Investment Entities Consolidation relief for investment funds (Amendments to IFRS 10, IFRS 12 and IAS 27)
Offsetting Financial The standard amends IAS 32 Financial Instruments: Presentation to provide clarifications on the application Assets and Financial of the offsetting rules. Liabilities (Amendments to IAS 32)
Recoverable Amount The IASB issued amendments to reverse the unintended requirement in IFRS 13 Fair Value Measurement Disclosures for Non- to disclose the recoverable amount of every cash-generating unit to which significant goodwill Financial Assets or indefinite-lived intangible assets have been allocated. Under the amendments, recoverable (Amendments to IAS a m o u n t i s r e q u i r e d t o b e d i s c l o s e d o n l y w h e n a n i m p a i r m e n t l o s s h a s b e e n r e c o g n i z e d o r r e v e r s e d . 36) The amendments apply retrospectively for annual periods beginning on or after 1 January 2014. Novation of Derivatives Providing relief from discontinuing an existing hedging relationship when a novation that was not and Continuation of contemplated in the original hedging documentation meets specific criteria. Hedge Accounting (Amendments to IAS 39) IFRIC 21 Levies A new interpretation has provided more clarity as to when a liability for a levy should be recognized.
45 ANNUAL REPORT 2015 - 16 c) New standards and interpretations not yet adopted 7. Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 A number of new standards, amendments to standards and and IAS 28) interpretations are effective for annual periods beginning on or after 1 January 2015, and have not been applied 8. Disclosure Initiative (Amendments to IAS 1). in preparing these financial statements, for consistency 9. Investment Entities: Applying the Consolidation Exception purposes as the Authority’s year started 01 July, 2014. Those (Amendments to IFRS 10, IFRS 12 and IAS 28). which may be relevant to the Authority are set out below. Effective for the Financial Year commencing 1 January The Authority does not plan to adopt these standards early. 2017. These will be adopted in the periods that they become mandatory unless otherwise indicated: IFRS 15 Revenue from Contracts with Customers. Effective Effective for the Financial Year commencing 1 January for the Financial Year commencing 1 January 2018. 2015. 1) IFRS 9 Financial Instruments Defined Benefit Plans: Employee Contributions (Amendments to IAS 19); Effective for the Financial Year commencing 1 All Standards and Interpretations will be adopted at January 2016. their effective date, except for those Standards and Interpretations that are not applicable to the entity. 1. IFRS 14 Regulatory Deferral Accounts. IFRS 14, IAS 41, IAS 27, IFRS 10, IAS 28, IFRS 11 and IFRS 2. Accounting for Acquisitions of Interests in Joint Operations 12 are not applicable to the business of the entity (Amendments to IFRS 11). and will therefore have no impact on future financial 3. Clarification of Acceptable Methods of Depreciation statements. The Authority is of the opinion that the and Amortisation (Amendments to IAS 16 and IAS 38). impact of the application of the remaining Standards 4. Leases: IFRS 16 (Replaces IAS 17 and has a mandatory and Interpretations will be as follows. effective date of 1 January 2019). Defined Benefit Plans: Employee Contributions 5. Agriculture: Bearer Plants (Amendment to IAS 16 and IAS (Amendments to IAS 19) 41). 6. Equity Method in Separate Financial Statements The amendments introduce relief that will reduce the (Amendments to IAS 27). complexity and burden of accounting for certain contributions from employees or third parties. Such
46 ANNUAL REPORT 2015 - 16 contributions are eligible for practical expedient if they the consumption of the economic benefits of the intangible are: asset are ‘highly correlated’, or when the intangible asset is expressed as a measure of revenue. a) set out in the formal terms of the plan; The Authority currently has (but not significant) property b) linked to service; and plant and equipment and or intangible assets. These c) Independent of the number of years of service. amendments are thus not anticipated to cause a significant impact in the near future. The Authority will however adopt When contributions are eligible for the practical these standards on the effective date. expedient, an entity is permitted (but not required) to recognize them as a reduction of the service cost The amendments apply prospectively for annual periods in the period in which the related service is rendered. beginning on or after 1 January 2016 and early adoption is This standard will not have a significant impact on the permitted. Authority as it does not have a defined benefit scheme. Disclosure Initiative (Amendments to IAS 1) The amendments apply retrospectively for annual The amendments provide additional guidance on the periods beginning on or after 1 July 2014 with early application of materiality and aggregation when preparing adoption permitted. financial statements. RECENTLY ISSUED ACCOUNTING STANDARDS/NEW The amendments apply for annual periods beginning on or ACCOUNTING PRONOUNCEMENTS after 1 January 2016 and early application is permitted. Clarification of Acceptable Methods of Depreciation and IFRS 15 Revenue from contracts with customers Amortization (Amendments to IAS 16 and IAS 38). This standard replaces IAS 11 Construction Contracts, IAS 18 The amendments to IAS 16 Property, Plant and Equipment Revenue, IFRIC 13 Customer Loyalty Programmes, and IFRIC explicitly state that revenue-based methods of depreciation 15 Agreements for the Construction of Real Estate, IFRIC 18 cannot be used for property, plant and equipment. Transfer of Assets from Customers and SIC-31 Revenue – Barter of Transactions Involving Advertising Services. The amendments to IAS 38 Intangible Assets introduce a rebuttable presumption that the use of revenue-based The standard contains a single model that applies amortization methods for intangible assets is inappropriate. to contracts with customers and two approaches to The presumption can be overcome only when revenue and recognizing revenue: at a point in time or over time. The
47 ANNUAL REPORT 2015 - 16 model features a contract-based five-step analysis of which is expected to increase the provision for bad debts transactions to determine whether, how much and when recognized. revenue is recognized. The standard is effective for annual periods beginning on This new standard will most likely have a significant impact or after 1 January 2018 with retrospective application, early on the Authority, which will include a possible change in adoption is permitted. the timing of when revenue from licensees is recognized REVENUE RECOGNITION and the amount of revenue recognized. The Authority will perform a more detailed assessment of the impact of this Revenue is measured at the fair value of the consideration standard. received or receivable from provision of goods and services. Revenue is reduced for estimated customer returns, rebates The standard is effective for annual periods beginning on or and other similar allowances. Fees and commissions are after 1 January 2017, with early adoption permitted under recognised on an accrual basis on delivery of the related IFRS. service. IFRS 9 Financial Instruments Interest income is recognized on an accrual basis by On 24 July 2014, the IASB issued the final IFRS 9 Financial reference to the principal outstanding and at the effective Instruments Standard, which replaces earlier versions of interest rate applicable. Grant revenue is recognized when IFRS 9 and completes the IASB’s project to replace IAS 39 received by the entity and when the conditions for the Financial Instruments: grant are met. Recognition and Measurement PROPERTY, PLANT AND EQUIPMENT This standard will have a significant impact on the Authority, Equipment are stated at the cost of bringing the assets which will include changes in the measurement bases of to their present location and condition less accumulated the Authority’s financial assets to amortized cost, fair value depreciation and any accumulated impairment losses. through other comprehensive income or fair value through DEPRECIATION profit or loss. Even though these measurement categories are similar to IAS 39, the criteria for classification into these Depreciation is calculated to write off the cost of property, categories are significantly different. In addition, the IFRS 9 plant and equipment on a straight line basis using the impairment model has been changed from an “incurred following annual rates:- loss” model from IAS 39 to an “expected credit loss” model,
48 ANNUAL REPORT 2015 - 16 software is recognised as an asset when the Authority is Rate Asset Life Estimate able to demonstrate its intention and ability to complete the development and use the software in a manner that Buildings 2% 50 Years will generate future economic benefits, and can reliably measure the costs to complete the development. The Motor vehicles 25% 5 Years capitalised costs of internally developed software include all costs directly attributable to developing the software Computer equipment 30% 3 1/3 Years and capitalized borrowing costs, and are amortized over its useful life. Furniture and fittings 12.5% 8 Years Internally developed software is stated at capitalized cost less accumulated amortisation and impairment. Subsequent Tools 10% 10 Years expenditure on software assets is capitalised only when it increases the future economic benefits embodied in the Software/Intangibles 30% 31/3 Years specific asset to which it relates. All other expenditure is expensed as incurred.
Software is amortised on a straight line basis over its Depreciation methods, useful lives and residual values estimated useful life, from the date that it is available for are reviewed at each reporting date and adjusted if use. The estimated useful life of software for the current and appropriate. comparative periods is three years. Amortisation methods, useful lives and residual values are reviewed at each Gains and losses on disposal of equipment is determined reporting date and adjusted if appropriate. by reference to their carrying amount and are taken into account in determining operating surplus /deficit. CAPITAL GRANTS INTANGIBLE ASSETS Grants related to the acquisition of assets are recognised in the Statement of Comprehensive income on a systematic Software basis over the useful lives of the assets acquired as per IAS Software acquired by the Authority is measured at cost 20. The Authority however did not receive any grants for the less accumulated amortisation and any accumulated year ended 30 June 2016 nor had any running grant. impairment losses. Expenditure on internally developed
49 ANNUAL REPORT 2015 - 16 SUBSIDIARY date. A subsidiary is a company in which the Authority either IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS directly or indirectly has an interest of more than 50% of the At each end of reporting period, the Authority reviews the voting rights or otherwise has power to exercise control over carrying amounts of its tangible and intangible assets to the operations of the entity when it is exposed to or has determine whether there is any indication that those assets rights to variable returns from its involvement with the entity have suffered an impairment loss. If any such indication and has the ability to affect those returns through its power exists, the recoverable amount of the asset is estimated over the entity. The Authority does not currently have direct in order to determine the extent of the impairment loss (if or indirect interest or voting rights in any company and any). Where it is not possible to estimate the recoverable therefore its financial statements were not impacted by amount of an individual asset, the Authority estimates the performance of another company. recoverable amount of the cash-generating unit to which WORK IN PROGRESS the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also The Authority took a decision during the Financial Year allocated to individual cash-generating units, or otherwise ended 30 June 2015 to construct new premises at the they are allocated to the smallest group of cash-generating ERA property in Lugogo Industrial Area. In the current FY units for which a reasonable and consistent allocation basis 2015/16, two consultants were procured. One successfully can be identified. carried out the Environmental Impact Assessment of the premises, while the other is tasked with development of Intangible assets with indefinite useful lives and intangible structural designs for the building and supervision, sourcing assets not yet available for use are tested for impairment for the contractor and supervision of the contractor’s works annually, and whenever there is an indication that the asset when construction commences in Financial Year 2017/18. may be impaired. The process is on-going. Recoverable amount is the higher of fair value less costs to All the project costs incurred to-date are currently reported. sell and value in use. In assessing value in use, the estimated Work in progress under the Property, Plant and Equipment will future cash flows are discounted to their present value be capitalized upon completion; and will be depreciated using a pre-tax discount rate that reflects current market over its useful economic life. Other remaining work in assessments of the time value of money and the risks progress relates to a new Human Resource software which specific to the asset for which the estimates of future cash was under development/customization at the reporting flows have not been adjusted.
50 ANNUAL REPORT 2015 - 16 If the recoverable amount of an asset (or cash-generating a) Financial Assets and Financial Liabilities unit) is estimated to be less than its carrying amount, the (i) Recognition carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is The Authority initially recognizes loans and receivables on recognised immediately in profit or loss, unless the relevant the date that they are originated. Regular way purchases asset is carried at a revalued amount, in which case the and sales of financial assets are recognised on the trade impairment loss is treated as a revaluation decrease. date at which the Authority commits to purchase or sell the asset. All other financial assets and liabilities (including Where an impairment loss subsequently reverses, the assets and liabilities designated at fair value through profit carrying amount of the asset (cash-generating unit) or loss are recognized initially on the trade date, which is the is increased to the revised estimate of its recoverable date that the Authority becomes a party to the contractual amount, but so that the increased carrying amount does provisions of the instrument. not exceed the carrying amount that would have been determined had no impairment loss been recognised for A financial asset or financial liability is measured initially at the asset (cash-generating unit) in prior years. A reversal of fair value plus, for an item not at fair value through profit an impairment loss is recognised immediately in profit or loss, or loss, transaction costs that are directly attributable to its unless the relevant asset is carried at a revalued amount, in acquisition or issue. which case the reversal of the impairment loss is treated as (ii) Classification a revaluation increase. Financial Assets FINANCIAL INSTRUMENTS The Authority classifies its financial assets in one ofthe Financial Assets following categories: Financial assets are recognised initially at cost using settlements date accounting. Held to maturity investments (i) Loans and Receivables; are subsequently measured at amortised cost while financial (ii) Held to maturity; assets held for trading and available for sale are measured (iii) Available for sale; or at fair value. (iv) At fair value through profit or loss and within the category as: held for trading, or designated at fair value through profit or loss.
51 ANNUAL REPORT 2015 - 16 b) Financial Liabilities Financial Liabilities The Authority derecognizes a financial liability when its The Authority classifies its financial liabilities as measured at contractual obligations are discharged, cancelled or amortised cost or fair value through profit or loss. expired. Derecognition Offsetting Financial Assets Financial assets and liabilities are offset and the net amount The Authority derecognizes a financial asset when the presented in the statement of financial position when, and contractual rights to the cash flows from the financial asset only when, the Authority has a legal right to set off the expire, or it transfers the rights to receive the contractual amounts and it intends either to settle them on a net basis cash flows in a transaction in which substantially all the or to realize the asset and settle the liability simultaneously. risks and rewards of ownership of the financial asset are Income and expenses are presented on a net basis only transferred or in which the Authority neither transfers nor when permitted under IFRS, or for gains and losses arising retains substantially all the risks and rewards of ownership from a group of similar transactions. and it does not retain control of the financial asset. Amortized cost measurement Any interest in such transferred financial assets that qualify for derecognition that is created or retained by the The amortised cost of a financial asset or liability is the Authority is recognised as a separate asset or liability. On amount at which the financial asset or liability is measured at derecognition of a financial asset, the difference between initial recognition, minus principal repayments, plus or minus the carrying amount of the asset (or the carrying amount the cumulative amortization using the effective interest allocated to the portion of the asset transferred) and the method of any difference between the initial amount sum of: recognised and the maturity amount minus any reduction for impairment. (a) The consideration received (including any new asset obtained less any new liability assumed); Fair value measurement and, ‘Fair value’ is the price that would be received to sell an (b) Any cumulative gain or loss that had been asset or paid to transfer a liability in an orderly transaction recognised in other comprehensive income is between market participants at the measurement date recognised in profit or loss. in the principal or, in its absence, the most advantageous market to which the Authority has access at that date. The
52 ANNUAL REPORT 2015 - 16 fair value of a liability reflects its non-performance risk. Identification and measurement of impairment When available, the Authority measures the fair value of an At each reporting date the Authority assesses whether there instrument using the quoted price in an active market for is objective evidence that financial assets not carried at fair that instrument. A market is regarded as active if transactions value through profit or loss are impaired. A financial asset for the asset or liability take place with sufficient frequency or a group of financial assets is impaired when objective and volume to provide pricing information on an ongoing evidence demonstrates that a loss event has occurred basis. after the initial recognition of the asset(s); and that the loss event has an impact on the future cash flows of the asset(s) If there is no quoted price in an active market, then the that can be estimated reliably. Authority uses valuation techniques that maximise the use of relevant observable inputs and minimize the use Impairment losses on assets measured at amortised cost of unobservable inputs. The chosen valuation technique are calculated as the difference between the carrying incorporates all of the factors that market participants amount and the present value of estimated future cash would take into account in pricing a transaction. flows discounted at the asset’s original effective interest rate. The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price – (c) Investment securities i.e. the fair value of the consideration given or received. Investment securities are initially measured at fair value If the Authority determines that the fair value at initial plus, in case of investment securities not at fair value recognition differs from the transaction price and the fair through profit or loss, incremental direct transaction costs, value is evidenced neither by a quoted price in an active and subsequently accounted for depending on their market for an identical asset or liability nor based on a classification as either held to maturity, fair value through valuation technique that uses only data from observable profit or loss, or available for sale. markets, then the financial instrument is initially measured (d) Held-to-maturity at fair value, adjusted to defer the difference between the fair value at initial recognition and the transaction price. Held-to-maturity investments are non-derivative assets with Subsequently, that difference is recognised in the statement fixed or determinable payments and fixed maturity that of comprehensive income on an appropriate basis over the the Authority has the positive intent and ability to hold to life of the instrument but no later than when the valuation maturity, and which are not designated as at fair value is wholly supported by observable market data or the through profit or loss or as available for sale. transaction is closed out. 53 ANNUAL REPORT 2015 - 16 Held-to-maturity investments are carried at amortised cost Subsequent to initial recognition, trade receivables are using the effective interest method, less any impairment carried at an amortised cost using the effective interest losses. A sale or reclassification of a more than insignificant method. An estimate is made for doubtful receivables amount of held-to-maturity investments would result in based on a review of all outstanding amounts at the year the reclassification of all held-to-maturity investments as end. Bad debts are written off during the year in which they available for sale, and would prevent the Authority from are identified. Specific provision is made for all known bad classifying investment securities as held to maturity for the debts. Bad debts are written off when all reasonable steps current and the following two Financial Years. to recover them have been taken without success.
However, sales and reclassifications in any of the following PROVISIONS circumstances would not trigger a reclassification:- Provisions are recognized when the Authority has a present i. Sales or reclassifications that are so close to maturity legal or constructive obligation as a result of past events, that changes in the market rate of interest would not it is probable that an outflow of resources embodying have a significant effect on the financial asset’s fair economic benefits will be required to settle the obligation, value; and a reliable estimate of the amount can be made. ii. Sales or reclassifications after the Authority has RETIREMENT BENEFIT OBLIGATIONS collected substantially all of the asset’s original National Social Security Fund principal; and iii. Sales or reclassifications attributable to non-recurring The Authority makes contributions to the National Social isolated events beyond the Authority’s control that Security Fund (NSSF) which is a statutory retirement could not have been reasonably anticipated. benefit scheme established under the NSSF Act. This is a defined contribution scheme into which the Authority (e) Loans and receivables contributes 10% of the employees’ gross cash emoluments. Loans and receivables are non-derivative financial assets The Authority’s contribution is charged to Revenue and with fixed or determinable payments and fixed maturities Expenditure account as it falls due. that are not quoted in an active market. Loans and receivables are recognised when cash is advanced to CASH AND CASH EQUIVALENTS borrowers and are initially recognised at fair value plus any For the purposes of the statement of cash flows, cash and directly attributable transaction cost. cash equivalents comprise cash on hand, deposits held at call with banks, excluding other short-term highly liquid
54 ANNUAL REPORT 2015 - 16 investments or fixed deposits. into Uganda Shillings at the rate of exchange ruling at the reporting date. Foreign currency transactions during the COMPARATIVES year are translated into Uganda Shillings at the rates ruling Where necessary, comparative figures have been adjusted at the transaction dates. The resulting differences are dealt to conform to changes in presentation in the current year. with in Statement of Comprehensive Income in the year in which they arise. TRANSLATION OF FOREIGN CURRENCIES Assets and liabilities at the end of the reporting period which are expressed in foreign currencies are translated
1. FIXED ASSETS SCHEDULE Land & Motor Furniture & Office Computers & Books & Intangibles W.I.P Investment Total COST Buildings Vehicles Fixtures Equipment Accessories Journals Property Balance b/fwd at 1 July 2015 2,462,178,775 729,951,839 414,574,370 465,503,687 463,665,091 - 322,165,559 - 700,000,000 5,558,039,321 Capitalisation of Buildings - - - - - Additions during the period 10,831,760.00 452,429,754 48,314,374 65,461,011 60,387,808 - 40,366,424 13,560,627 - 691,351,758 Revaluations 2,873,750,643 382,899,480 1,847,860,000 5,104,510,123 Disposals/Write-off during the period (36,983,558) (32,791,695) (10,385,940) - - - (80,161,192) Balance c/fwd at 30 June 2016 5,346,761,178 1,565,281,073 425,905,186 498,173,003 513,666,959 - 362,531,983 13,560,627 2,547,860,000 11,273,740,009
ACCUMULATED DEPRECIATION Balance b/fwd at 1 July 2015 129,068,942.00 611,123,711 273,064,327 250,453,024 317,534,139 - 220,416,518 67,200,000 1,868,860,661 Depreciation adjustment ------Depreciation charge for the period 29,967,235.50 81,796,074 31,694,529 37,287,062 118,139,700 - 60,727,889 5,600,000 365,212,489 Eliminated at disposal - - (4,914,226) (32,791,695) (10,385,940) - - - (48,091,861) Balance c/fwd at 30 June 2016 159,036,177 692,919,786 299,844,630 254,948,391 425,287,899 - 281,144,407 72,800,000 2,185,981,290
Net Book Value at 30 June 2016 5,187,725,000 872,361,287 126,060,556 243,224,612 88,379,060 - 81,387,576 13,560,627 2,475,060,000 9,087,758,720
Net Book Value at 30 June 2015 2,333,109,833 118,828,128 141,510,043 215,050,663 146,130,952 - 101,749,041 632,800,000 3,689,178,658
55 ANNUAL REPORT 2015 - 16 Description 2015 - 16 2014 - 15 4 CASH AND BANK UGX UGX Standard Chartered USD 3,816,837,504 2,891,833,192 Standard Chartered UGX 15,597,113 336,355,800 CitiBank -Sinking Fund (US$) - 1,600,335 Stanbic Bank UGX 93,209,529 33,336,621 Stanbic Bank US$ 589,191,885 124,200,140 Petty Cash - - 4,514,836,032 3,387,326,088 5 PREPAYMENTS AND ADVANCES Project Cash Advances 2,146,890 39,883,526 Accrued Income 988,093,625 834,855,514 Prepayments 124,756,977 90,526,410 Staff Loans and advances 363,946,611 535,903,224 1,478,944,102 1,501,168,673 6 SHORT-TERM INVESTMENTS Fixed Deposit 1,410,503,147 408,876,712 7 RECEIVABLES UGX Uganda Electricity Transmission Co. Limited - 105,824,859 Kyegegwa Rural Electricity Coop. Society - 297,853 Bujagali Energy Limited - - Sugar and Allied Industries Limited - - South Asia Energy Management Limited - - Albatros Energy (U) Limited 288,760,105 49,527 The United Engineering & Trading Company, UNENTA - -
56 ANNUAL REPORT 2015 - 16 Description 2015 - 16 2014 - 15 4 CASH AND BANK UGX UGX Riverside Acres Limited - - Green Energy Tech Aps - - Mola Solar Systems (Uganda) Limited - 3,896,089 Elgon Hydro Siti (Pvt) Ltd - 116,882,658 Bugoye Hydro Ltd - 132,071 Kametsi Energy (U) Ltd 12,041,647 SM Hydro Ltd (13,469,409) Butama Hydro Electricity Company Ltd 40,820,640 Ndugutu Power Company Ltd 40,820,640 Jelco Nengo Hydro Power Company Ltd 40,820,640 Sugar and Allied Industries Ltd 60,210,444 Bio- Electricity - - Bundibugyo Energy Cooperative Society 14,049,104 13,216,280 Kakira Sugar Ltd - - Marsh Pride Energy (U) Ltd - - Carnelian Prime Trust - - Proper Wood Works Ltd - - Eco Power Limited - - Ziba Limited - - PACMECS - 4,927,000 Kilembe Mines - - PACSPA - - Albatros Energy (U) Limited - - Electromax - - Tibet Hima Mining Co. Ltd - 11,950,360
57 ANNUAL REPORT 2015 - 16 Description 2015 - 16 2014 - 15 4 CASH AND BANK UGX UGX Keere Power Limited - - Muvumbe Hydro (U) Ltd - 3,111,849 Elemental Energy Limited - - Greenewus Energy - - Kilembe Investments Limited - 27,570 Optimus Energy - - Eskom Uganda Ltd - 348,336,735 Kikagati Power Company Limited - - Uganda Electricity Distribution Co. Ltd - - Jacobsen Elektro AS - - Ferdsult Engineering Services Ltd - 27,081,266 Hydromax Uganda Limited - - Kasese Cobalt Company Limited - - Uganda Electricity Generation Co. Ltd - 18,449,823 Electro-Maxx Uganda Limited 84,605,879 49,102,273 Eco Power (U) Limited - - Umeme Limited 1,128,495,360 118,472,262 Africa EMS Mpanga Ltd - - Kalangala Infrastructure Services - - Rwimi EP Company Limited - 46,753,063 Permit Applications - 29,525,418 West Nile Rural Electrification Company Ltd - 12,699,593 1,697,155,049 910,736,547 Details 2015-2016 2014-2015
58 ANNUAL REPORT 2015 - 16 Description 2015 - 16 2014 - 15
4 CASH AND BANK UGX UGX 8 PAYABLES Trade creditors 26,313,465 42,057,806 Provision for bad debts 288,760,105 VAT Payable (Claimable) (59,938,582) 249,202,149 WHT Payable 105,184,463 99,747,439 Sundry suppliers 1,218,204,716 792,094,795 Prepaid/Deferred rent 33,491,777 15,182,360 1,612,015,944 1,198,284,549 9 DEFFERED INCOME Africa EMS Mpanga 41,937,500 44,935,950 Albatros Energy (U) Limited 145,866,777 113,479,070 ARPE LTD 242,985,666 146,705,902 BECS 5,912,060 4,733,224 Bujagali Energy Limited - 1,244,359,567 Eco Power - - Electro-Maxx Uganda Limited 145,866,777 137,374,358 Elgon Siti (U) Limited 106,959,289 79,233,625 Eskom Uganda Limited 1,520,244,000 1,250,559,000 Ferdsult Engineering Uganda Limited 14,357,860 16,228,200 Greenewus - 3,051,040 Hydro-max (Nkusi) Ltd 17,248,400 13,052,300 Hydromax Limited 22,137,400 10,607,800 Invespro Uganda Limited - - Jacobsen Uganda Limited 99,013,753 0 Kakira Sugar Works Limited 120,651,310 97,267,774
59 ANNUAL REPORT 2015 - 16 Description 2015 - 16 2014 - 15
CASH AND BANK UGX UGX Kalangala Infrastructure Services 6,322,313 4,733,224 Kasese Cobalt Company Limited 20,269,920 16,228,200 Kikagati Energy Limited 25,488,450 16,228,200 Kilembe Investments Limited 5,907,003 4,733,224 Kinyara Sugar Works Limited 25,337,400 16,228,200 Kyegegwa Rural Cooperative Society 4,193,750 - Muvumbe Hydro (U) Ltd 7,608,840 13,052,300 Ndugutu Power Company Ltd 40,449,720 Jelco Nengo Hydro Power Company Ltd 33,708,100 Butama Hydro Electricity Company Ltd 43,678,121 Lubilia Kawembe Hydro Limited 51,529,095 Ziba Limited 7,543,455 Mss Xsabo Power Ltd 19,268,000 Mayuge Sugar Industries Ltd 10,838,250 Tororo Solar North Limited 9,634,000 Sugar and Allied Industries Ltd 13,547,813 Access Uganda Solar Limited 7,707,200 Genmax Nyagak Limited 20,252,580 - Bugoye Hydro Ltd 37,973,588 40,446,000 Nyamwamba Hydro Power Ltd 20,252,580 24,342,300 PACMECS 5,912,060 4,733,224 Rwimi HPP 41,769,055 26,139,440 Sugar Corporation of Uganda Limited 20,269,920 16,228,200 Tibet Hima Mining Co. Ltd 20,224,860 17,630,280
60 ANNUAL REPORT 2015 - 16 Description 2015 - 16 2014 - 15
CASH AND BANK UGX UGX Tronder Power Ltd - - Uganda Electricity Distribution Company Ltd 52,656,880 33,808,750 Uganda Electricity Generation Company Ltd 42,229,000 33,808,750 Uganda Electricity Transmission Company Ltd 760,122,000 625,279,500 Umeme Limited 1,350,887,850 944,010,745 West Nile Rural Electrification Company Limited 16,333,710 16,228,200 5,205,096,304 5,015,446,545 Details 2015-2016 2014-2015 10 PAYROLL,GRATUITY & OTHER ACCRUALS Payroll - Clearing Account - 604,422 URA - PAYE Payable 98,875,585 108,220,403 NSSF Payable 99,220,567 40,546,782 Audit Expenses-ERA Trust Fund - - Accrued Gratuity 245,931,763 339,694,885 Insurance Premium 7,545,208 2,221,700 451,573,124 491,288,192 11 BOARD EXPENSES Chairman’s Retainer 40,800,000 40,800,000 Members’ Retainer 142,695,000 138,200,000 Communication & travel costs 108,442,528 62,345,064 Meetings Costs 44,326,725 28,990,333 336,264,254 270,335,396 12 TRAINING, CONFERENCES & WORKSHOPS Board Members:
61 ANNUAL REPORT 2015 - 16 Description 2015 - 16 2014 - 15
CASH AND BANK UGX UGX Per Diem Allowance 325,976,613 292,470,211 Travel Abroad/Tickets 175,274,573 195,092,752 Training and Conference fees 221,550,709 172,314,438 722,801,896 659,877,401 Staff: Air tickets 183,823,385 215,969,711 Per Diem 406,597,521 360,924,017 Tuition 352,243,404 398,633,427 Local Training - - Professional subs 18,887,082 9,479,194 ERA Strategy/Business Planning workshops 81,590,801 131,004,486 Materials + related costs - - Conference fees - - 1,043,142,192 1,116,010,836 Total on Training & Conferences 1,765,944,088 1,775,888,237 Details 2015-2016 2014-2015 13 PERSONEL AND RELATED EXPENDITURE UGX UGX Staff Salaries 4,525,490,287 3,861,299,078 NSSF Contribution 10% 620,871,465 517,392,048 Gratuity 1,110,150,713 948,177,370 Leave allowances 322,294,122 66,042,956 Staff Medical Expenses 267,524,246 225,591,353 Staff Welfare/Temporary 23,524,688 11,675,000 Acting/Responsibility Allowances 250,214,513 259,734,445
62 ANNUAL REPORT 2015 - 16 Description 2015 - 16 2014 - 15
CASH AND BANK UGX UGX Work Life Balance & HIV at Work programme 20,565,345 15,500,635 Staff Insurance 71,450,142 40,869,891 7,212,085,521 5,946,282,776 14 CONSULTANCY SERVICES Local Consultancy 87,152,995 46,482,726 International Consultancy 304,152,812 367,388,619 Local consultancy studies - 513,900 Legal Fees 73,123,885 118,571,657 Audit Fees - - 464,429,692 532,956,902 15 MONITORING & COMPLIANCE Fuel & Travel costs Accommodation & Subsistence 77,508,865 55,173,072 Other expenses 399,946,155 212,451,465 Installation & Grid Code Committee costs - 2,750,000 477,455,020 270,374,537 16 PROMOTIONS AND PUBLIC PROFILE Advertisement 6,198,644 42,065,532 Promotions and Publications 252,554,197 186,781,145 258,752,841 228,846,677 17 GENERAL ADMINISTRATIVE EXPENSES Bank Charges 21,059,480 20,349,136 Impairment losses-Bad debts 288,760,105 - Communication - Tel./Internet & E-mail 145,108,168 134,717,435
63 ANNUAL REPORT 2015 - 16 Description 2015 - 16 2014 - 15
CASH AND BANK UGX UGX Interest Expense 73,337,155 106,593,664 Supplies - Computer 15,899,396 11,760,799 Supplies - Stationery 49,410,927 61,195,172 Supplies-Office Equipment 1,266,495 30,974,213 Supplies - General 155,925,880 92,463,400 Maintenance - Furniture/Equipment 15,803,968 9,463,080 Insurance of Office and Equipment 31,524,965 34,550,613 Motor Vehicle expenses 146,688,477 151,828,095 Office maintenance (General up-keep) 22,770,000 37,063,390 Utilities -Water, Power, Rates 50,974,828 39,935,534 Staff Welfare-Meals and Others 168,471,810 160,326,704 Office Security/cleaning 36,509,998 33,786,334 1,223,511,652 925,007,567 Details 2015-2016 2014-2015 18 FOREX TRANSLATION GAINS/(LOSSES) UGX UGX Foreign Exchange Gain/(Loss) (225,908,572) (802,336,235) - - 19 STAKEHOLDERS PROGRAMMES Workshops/Consumables 208,487,506 76,821,108 Radio & TV Programmes 232,096,113 103,629,691 Regional Programmes (AFUR/EREA) 64,061,897 63,007,986 Adverts & Notices 28,627,119 28,171,269 Venue /Accommodation /Subsistence 142,033,183 221,706,466
64 ANNUAL REPORT 2015 - 16 Description 2015 - 16 2014 - 15 CASH AND BANK UGX UGX Publications/Materials - 1,978,500 Conference Charges 15,884,143 13,497,434 Membership Subscriptions 77,229,859 58,442,565 Special Projects + Other 27,593,221 42,233,508 796,013,039 609,488,526 20 GENERAL AND REVALUATIONS RESERVES Balance at commencement of year-General 2,279,732,416 1,642,674,831 Post Audit Adjustments during the year Revaluation 5,737,045,100 632,534,977 Reserves Surplus/(Deficit) for the year 2,623,734,163 637,057,585 Balance as at 30 June 10,640,511,679 2,912,267,393 21 OTHER INCOME Interest Income 52,713,155 68,061,507 Fines 85,460,219 - Disposal of NCAs 6,770,000 4,481,020 144,943,373 72,542,527
65 ANNUAL REPORT 2015 - 16 APPENDIX I AUTHORITY BUSINESS CONSIDERED IN THE PERIOD JULY 2015 TO JUNE 2016
NO MINUTE ACTION ITEM
250TH AUTHORITY MEETING HELD ON WEDNESDAY 29TH JULY 2015 IN THE ERA BOARDROOM, ERA HOUSE PLOT 15 SHIMONI ROAD MIN 642/250/2015 TO CONSIDER AND APPROVE THE POWER PURCHASE AGREEMENT BETWEEN UGANDA ELECTRICITY TRANSMISSION COMPANY 1 LIMITED (UETCL) AND ACCESS UGANDA SOLAR LIMITED [AUTHORITY PAPER NO.250.3] MIN 643/250/2015 TO CONSIDER AND APPROVE THE APPLICATION FOR LICENSE EXEMPTION BY KISIIZI HOSPITAL POWER LIMITED [AUTHORITY 2 PAPER NO.250.4]
3 MIN 644/250/2015 TO RECEIVE AND CONSIDER ADDITIONS TO THE UMEME LTD 2015 INVESTMENT PLAN [AUTHORITY PAPER NO. 250.5]
MIN 645/250/2015 TO RECEIVE AND CONSIDER THE FINANCIAL AND COMMERCIAL PERFORMANCE OF WENRECO LIMITED IN THE YEAR 2014. 4 [AUTHORITY PAPER NO. 250.6 (A)] MIN 646/250/2015 TO RECEIVE AND CONSIDER THE TECHNICAL PERFORMANCE OF WENRECO LIMITED IN THE YEAR 2014. [AUTHORITY PAPER 5 NO. 250.6 (B)] MIN 647/250/2015 TO CONSIDER AND APPROVE THE INVESTMENT VERIFICATION REPORT FOR UMEME LIMITED’S 2012 KITINTALE PREPAYMENT 6 PILOT PROJECT [AUTHORITY PAPER NO. 250.8]
MIN 648/250/2015 TO RECEIVE AND CONSIDER THE APPLICATION FOR MODIFICATION OF LICENSE NO. 094 ISSUED TO AFRICA EMS NYAMWAMBA 7 LIMITED [AUTHORITY PAPER NO. 250.9] TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF PERMIT NO. 2014/058 BY SAVIMAXX LIMITED IN RESPECT MIN 649/250/2015 8 OF THE PROPOSED 9.2 MW LOWER NSONGYA HYDROPOWER PROJECT LOCATED IN KABAROLE DISTRICT. [AUTHORITY PAPER NO. 250.10]
MIN 650/250/2015 TO RECEIVE AND CONSIDER THE ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT REPORT FOR THE PROPOSED 9.6 MW 9 LOWER NKUSI HYDROPOWER PROJECT BY PA TECHNICAL SERVICES LIMITED [AUTHORITY PAPER NO. 250.11]
MIN 651/250/2015 TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF THE FINANCIAL CLOSE DATE FOR ACHWA HPP2 BY ARPE 10 LIMITED. [AUTHORITY PAPER NO. 250.12]
MIN 652/250/2015 TO RECEIVE AND CONSIDER THE REVIEW OF THE ESIA REPORT FOR THE PROPOSED 6.9 MW MUYEMBE HYDROPOWER PLANT IN 11 KAPCHORWA DISTRICT BY MT. ELGON POWER COMPANY LIMITED [AUTHORITY PAPER NO.250.13] MIN 653/250/2015 TO RECEIVE AND CONSIDER THE MODIFICATION OF THE PROJECT CONCEPT FOR THE PROPOSED 10 MW GRID CONNECTED 12 SOLAR PV BY TORORO SOLAR NORTH LIMITED [AUTHORITY PAPER NO.250.14]
66 ANNUAL REPORT 2015 - 16 NO MINUTE ACTION ITEM MIN 654/250/2015 TO RECEIVE AND CONSIDER THE REVIEW OF THE ESIA REPORT FOR THE PROPOSED 10 MW SOLAR PV POWER PLANT BY 13 TORORO SOLAR NORTH IN TORORO DISTRICT [AUTHORITY PAPER NO.250.15]
14 MIN 655/250/2015 TO RECEIVE AND CONSIDER THE STATUS OF LITIGATED CLAIMS AGAINST THE AUTHORITY [AUTHORITY PAPER 250.16]
MIN 656/250/2015 TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF PERIOD TO ACHIEVE FINANCIAL CLOSE FOR THE RWIMI 15 HPP [AUTHORITY PAPER NO.250.17] MIN 657/250/2015 TO RECEIVE AND CONSIDER THE APPLICATION FOR PERMIT EXTENSION BY NGOROMYO POWER LIMITED FOR THE PROPOSED 16 6.0 MW NGOROMYO HPP ON RIVER ATARI IN KAPCHORWA DISTRICT [AUTHORITY PAPER NO.250.18] MIN 658/250/2015 TO RECEIVE AND CONSIDER THE APPLICATION FOR PERMIT EXTENSION BY CACL CONSULTING LIMITED FOR THE 1 MW POWER 17 PROJECT ALONG RIVER MUVUMBE IN KABAALE DISTRICT [AUTHORITY PAPER NO.250.19] MIN 659/250/2015 TO CONSIDER THE REPORT OF THE SPECIAL AUDIT COMMITTEE MEETING NO.2 IN THE FIRST QUARTER OF THE FINANCIAL YEAR 18 2014/2015. [AUTHORITY PAPER NO.250.20]
251ST AUTHORITY MEETING HELD ON WEDNESDAY 26TH AUGUST 2015 IN THE ERA BOARDROOM, ERA HOUSE PLOT 15 SHIMONI ROAD
TO CONSIDER AND APPROVE THE APPLICATION FOR LICENSE EXTENSION BY JACOBSEN UGANDA POWER PLANT COMPANY 19 MIN 664/251/2015 LIMITED (JUPPCL) [AUTHORITY PAPER NO.251.2]
20 MIN 665/251/2015 TO RECEIVE AND CONSIDER THE UMEME LTD 2014 COMPLETED INVESTMENTS [AUTHORITY PAPER NO. 251.3] TO RECEIVE AND CONSIDER THE INSTALLATION PERMITS COMMITTEE REPORT FOR THE YEAR 2014/15 [AUTHORITY PAPER NO. 21 MIN 666/251/2015 251.4] TO RECEIVE AND CONSIDER THE APPLICATION FOR GRID EXTENSION NO. 62 BY UMEME LIMITED. [AUTHORITY PAPER NO. 22 MIN 667/251/2015 251.5] TO RECEIVE AND CONSIDER THE DRAFT ELECTRICITY REPORTING AND RECORD KEEPING REGULATIONS, 2015 [AUTHORITY 23 MIN 668/251/2015 PAPER NO. 251.6] TO RECEIVE AND CONSIDER THE LICENSE APPLICATION FOR GENERATION AND SALE OF ELECTRICITY FROM THE PROPOSED MIN 669/251/2015 24 20 MW PILOT SOLAR PHOTOVOLTAIC POWER PARK IN GOMBA DISTRICT AND 20 MW PILOT WIND POWER PARK IN TORORO DISTRICT [AUTHORITY PAPER NO. 251.7] MIN 670/251/2015 TO RECEIVE AND CONSIDER THE POWER SYSTEM SUMMARY REPORT FOR THE PERIOD APRIL TO JUNE 2015 [AUTHORITY PAPER 25 NO. 251.8] MIN 671/251/2015 TO CONSIDER THE REPORT OF THE HUMAN RESOURCES COMMITTEE MEETING NO.1 IN THE FIRST QUARTER OF THE FINANCIAL 26 YEAR 2015/2016. [AUTHORITY PAPER No.251.10]
67 ANNUAL REPORT 2015 - 16 NO MINUTE ACTION ITEM
252ND AUTHORITY MEETING HELD ON TUESDAY 15TH SEPTEMBER 2015 IN THE ERA BOARDROOM, ERA HOUSE PLOT 15 SHIMONI ROAD
MIN 678/252/2015 TO RECEIVE AND CONSIDER THE APPLICATION FOR A LICENSE BY UGANDA ELECTRICITY GENERATION COMPANY LIMITED 27 FOR THE 5.5 MW NYAGAK III HYDROPOWER PROJECT [AUTHORITY PAPER NO.252.2] TO RECEIVE AND CONSIDER THE APPLICATION FOR LICENSE BY MAYUGE SUGAR LIMITED FOR THE 9.2 MW BAGASSE CO- 28 MIN 679/252/2015 GENERATION PLANT [AUTHORITY PAPER NO. 252.3]
29 MIN 680/252/2015 TO RECEIVE AND CONSIDER THE UEDCL SERVICE TERRITORIES TARIFFS FOR THE YEAR 2015/16. [AUTHORITY PAPER NO. 252.4]
TO RECEIVE AND CONSIDER THE ADDITIONAL INVESTMENT VERIFICATION REPORT FOR UMEME LIMITED’S 2012 KITINTALE 30 MIN 681/252/2015 PREPAYMENT PILOT PROJECT. [AUTHORITY PAPER NO. 252.5]
TO RECEIVE AND CONSIDER AN APPLICATION FOR RENEWAL OF LICENSE BY TIBET HIMA MINING COMPANY LIMITED FOR THE 31 MIN 682/252/2015 YEAR 2015 [AUTHORITY PAPER NO. 252.6]
TO RECEIVE AND CONSIDER THE APPLICATION FOR APPROVAL OF PREPAID METERS USED IN THE CONCESSION AREAS 32 MIN 683/252/2015 MANAGED BY FERDSULT ENGINEERING SERVICES LIMITED (FESL) [AUTHORITY PAPER NO. 252.7]
TO RECEIVE AND CONSIDER THE POWER PURCHASE AGREEMENT BETWEEN THE UGANDA ELECTRICITY TRANSMISSION 33 MIN 684/252/2015 COMPANY LIMITED (UETCL) AND MAYUGE SUGAR LIMITED FOR THE SALE OF 3 MW TO THE NATIONAL GRID [AUTHORITY PAPER NO. 252.8]
TO RECEIVE AND CONSIDER THE POWER PURCHASE AGREEMENT BETWEEN THE UGANDA ELECTRICITY TRANSMISSION 34 MIN 685/252/2015 COMPANY LIMITED (UETCL) AND TORORO SOLAR NORTH LIMITED FOR A 10 MWP SOLAR PV PLANT IN TORORO DISTRICT [AUTHORITY PAPER NO. 252.9]
TO RECEIVE AND CONSIDER THE POWER PURCHASE AGREEMENT BETWEEN THE UGANDA ELECTRICITY TRANSMISSION 35 MIN 686/252/2015 COMPANY LIMITED (UETCL) AND SUGAR AND ALLIED INDUSTRIES LIMITED FOR AN 11.9 MW BAGASSE FIRED CO-GENERATION PLANT IN KALIRO DISTRICT [AUTHORITY PAPER NO. 252.10]
36 MIN 688/252/2015 TO RECEIVE AND APPROVE THE CHANGE IN OWNERSHIP OF ACCESS SOLAR UGANDA LIMITED [AUTHORITY PAPER NO. 252.12] TO RECEIVE AND APPROVE AN APPLICATION BY UMEME LIMITED FOR APPROVAL OF ADDITIONAL INVESTMENTS FOR THE 37 MIN 688/252/2015 YEAR 2015 [AUTHORITY PAPER NO. 252.13] TO CONSIDER AND APPROVE THE TECHNICAL KEY PERFORMANCE INDICATORS (KPI) FOR GENERATION PLANTS. [AUTHORITY 38 MIN 690/252/2015 PAPER NO. 252.14]
68 ANNUAL REPORT 2015 - 16 NO MINUTE ACTION ITEM TO RECEIVE AND CONSIDER UMEME LIMITED’S APPLICATION FOR APPROVAL OF GRID EXTENSION NO. 063/2015. [AUTHORITY 39 MIN 691/252/2015 PAPER NO. 252.15]
TO RECEIVE AND CONSIDER THE APPLICATION FOR APPROVAL OF THE RECONCILIATION OF DEEMED ENERGY INVOICES 40 MIN 692/252/2015 FROM HYDROMAX LIMITED. [AUTHORITY PAPER NO. 252.16]
253RD (SPECIAL) AUTHORITY MEETING HELD ON FRIDAY 2ND OCTOBER 2015 AT GOLF COURSE HOTEL KAMPALA TO RECEIVE AND CONSIDER THE CONSTITUTION OF AND APPOINTMENT OF MEMBERS OF THE ELECTRICITY REGULATORY 41 MIN 698/253/2015 AUTHORITY. [AUTHORITY PAPER NO.253.1] TO RECEIVE AND CONSIDER THE APPLICATION FOR A LICENSE BY SUGAR AND ALLIED INDUSTRIES LIMITED (SAIL) FOR A 11.9 42 MIN 699/253/2015 MW BAGASSE CO-GENERATION PLANT, IN KALIRO DISTRICT [AUTHORITY PAPER NO.253.2] 254TH (SPECIAL) AUTHORITY MEETING HELD ON MONDAY 19TH OCTOBER, 2015 AT IMPERIAL ROYALE HOTEL KAMPALA TO CONSIDER AND APPROVE THE POWER PURCHASE AGREEMENT BETWEEN UGANDA ELECTRICITY TRANSMISSION COMPANY 43 MIN 642/254/2015 LIMITED (UETCL) AND ACCESS UGANDA SOLAR LIMITED [AUTHORITY PAPER NO.250.3] TO CONSIDER AND APPROVE THE APPLICATION FOR LICENSE EXEMPTION BY KISIIZI HOSPITAL POWER LIMITED [AUTHORITY 44 MIN 643/254/2015 PAPER NO.250.4] 45 MIN 644/254/2015 TO RECEIVE AND CONSIDER ADDITIONS TO THE UMEME LTD 2015 INVESTMENT PLAN [AUTHORITY PAPER NO. 250.5] TO RECEIVE AND CONSIDER THE FINANCIAL AND COMMERCIAL PERFORMANCE OF WENRECO LIMITED IN THE YEAR 2014. 46 MIN 645/254/2015 [AUTHORITY PAPER NO. 250.6 (A)] TO RECEIVE AND CONSIDER THE TECHNICAL PERFORMANCE OF WENRECO LIMITED IN THE YEAR 2014. [AUTHORITY PAPER 47 MIN 646/254/2015 NO. 250.6 (B)] MIN 647/254/2015 TO CONSIDER AND APPROVE THE INVESTMENT VERIFICATION REPORT FOR UMEME LIMITED’S 2012 KITINTALE PREPAYMENT 48 PILOT PROJECT [AUTHORITY PAPER NO. 250.8] TO RECEIVE AND CONSIDER THE APPLICATION FOR MODIFICATION OF LICENSE NO. 094 ISSUED TO AFRICA EMS NYAMWAMBA 49 MIN 648/254/2015 LIMITED [AUTHORITY PAPER NO. 250.9 TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF PERMIT NO.2014/058 BY SAVIMAXX LIMITED IN RESPECT MIN 649/254/2015 50 OF THE PROPOSED 9.2 MW LOWER NSONGYA HYDROPOWER PROJECT LOCATED IN KABAROLE DISTRICT. [AUTHORITY PAPER NO. 250.10] TO RECEIVE AND CONSIDER THE ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT REPORT FOR THE PROPOSED 9.6 MW 51 MIN 650/254/2015 LOWER NKUSI HYDROPOWER PROJECT BY PA TECHNICAL SERVICES LIMITED [AUTHORITY PAPER NO. 250.11]
69 ANNUAL REPORT 2015 - 16 NO MINUTE ACTION ITEM TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF THE FINANCIAL CLOSE DATE FOR ACHWA HPP2 BY ARPE 52 MIN 651/254/2015 LIMITED. [AUTHORITY PAPER NO. 250.12] MIN 652/254/2015 TO RECEIVE AND CONSIDER THE REVIEW OF THE ESIA REPORT FOR THE PROPOSED 6.9 MW MUYEMBE HYDROPOWER PLANT IN 53 KAPCHORWA DISTRICT BY MT. ELGON POWER COMPANY LIMITED [AUTHORITY PAPER NO.250.13] TO RECEIVE AND CONSIDER THE MODIFICATION OF THE PROJECT CONCEPT FOR THE PROPOSED 10 MW GRID CONNECTED 54 MIN 653/254/2015 SOLAR PV BY TORORO SOLAR NORTH LIMITED [AUTHORITY PAPER NO.250.14] TO RECEIVE AND CONSIDER THE REVIEW OF THE ESIA REPORT FOR THE PROPOSED 10 MW SOLAR PV POWER PLANT BY 55 MIN 654/254/2015 TORORO SOLAR NORTH IN TORORO DISTRICT [AUTHORITY PAPER NO.250.15] 56 MIN 655/254/2015 TO RECEIVE AND CONSIDER THE STATUS OF LITIGATED CLAIMS AGAINST THE AUTHORITY [AUTHORITY PAPER 250.16] TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF PERIOD TO ACHIEVE FINANCIAL CLOSE FOR THE RWIMI 57 MIN 656/254/2015 HPP [AUTHORITY PAPER NO.250.17 TO RECEIVE AND CONSIDER THE APPLICATION FOR PERMIT EXTENSION BY CACL CONSULTING LIMITED FOR THE 1 MW POWER 58 MIN 658/254/2015 PROJECT ALONG RIVER MUVUMBE IN KABALE DISTRICT [AUTHORITY PAPER NO.250.19] TO CONSIDER THE REPORT OF THE SPECIAL AUDIT COMMITTEE MEETING NO.2 IN THE FIRST QUARTER OF THE FINANCIAL YEAR 59 MIN 659/254/2015 2014/2015. [AUTHORITY PAPER NO.250.20]
255TH AUTHORITY MEETING FOR THE MONTH OF OCTOBER HELD ON WEDNESDAY 11TH NOVEMBER, 2015 AT GOLF COURSE HOTEL KAMPALA
TO RECEIVE AND CONSIDER THE STATUS UPDATE OF ELECTRICITY GENERATION PROJECTS AT PERMIT STAGE AS AT OCTOBER 60 MIN 685/255/2015 2015. [AUTHORITY PAPER NO. 255.2]
TO RECEIVE AND CONSIDER THE STATUS UPDATE OF ELECTRICITY GENERATION PROJECTS AT LICENSE STAGE AS AT OCTOBER 61 MIN 686/255/2015 2015. [AUTHORITY PAPER NO. 255.3]
TO RECEIVE AND CONSIDER THE APPLICATIONS FOR GRID EXTENSION NO. 65, 66, 67 AND 68 BY UMEME LIMITED. [AUTHORITY 62 MIN 687/255/2015 PAPERS NO. 255.4 (A), (B), (C) & (D)]
MIN 688/255/2015 TO RECEIVE AND CONSIDER THE REPORT ON THE INSPECTION OF THE UGANDA ELECTRICITY TRANSMISSION COMPANY LTD 63 (UETCL) SUBSTATIONS. [AUTHORITY PAPER NO. 255.5] MIN 688/255/2015 TO RECEIVE AND CONSIDER THE AUDIT COMMITTEE REPORT FOR THE SECOND QUARTER OF FINANCIAL YEAR 2015/16 64 [AUTHORITY PAPER NO. 255.6]
70 ANNUAL REPORT 2015 - 16 NO MINUTE ACTION ITEM
256TH AUTHORITY MEETING HELD ON FRIDAY 18TH DECEMBER 2015 AT IMPERIAL ROYALE HOTEL KAMPALA
MIN 696/256/2015 TO RECEIVE AND CONSIDER THE POWER PURCHASE AGREEMENT BETWEEN UETCL AND GENMAX NYAGAK LIMITED RELATING 65 TO THE 5.5 MW HYDRO POWER PLANT ON RIVER NYAGAK , ZOMBO DISTRICT [AUTHORITY PAPER NO. 256.2] MIN 697/256/2015 TO RECEIVE AND CONSIDER THE 1ST AMENDMENT TO THE POWER EXCHANGE AGREEMENT BETWEEN UGANDA ELECTRICITY 66 TRANSMISSION COMPANY LIMITED AND KENYA POWER LIGHTING COMPANY [AUTHORITY PAPER NO. 256.3]
MIN 698/256/2015 TO RECEIVE AND CONSIDER THE POWER PURCHASE AGREEMENT BETWEEN UETCL AND NDUGUTU POWER COMPANY LIMITED 67 RELATING TO POWER GENERATION AT SINDILA SUB COUNTY, BUNDIBUGYO DISTRICT [AUTHORITY PAPER NO. 256.4]
68 MIN 699/256/2015 TO RECEIVE AND CONSIDER THE ANNUAL TARIFF REVIEW FOR THE YEAR 2016 [AUTHORITY PAPER NO. 256.5]
TO RECEIVE AND CONSIDER THE APPLICATION FOR REVIEW OF THE AUTHORITY DECISION ON UMEME LIMITED 2012 – 13 69 MIN 700/256/2015 APPROVED INVESTMENTS [AUTHORITY PAPER NO. 256.7]
70 MIN 701/256/2015 TO RECEIVE AND CONSIDER THE UMEME LIMITED INVESTMENT PLAN FOR THE YEAR 2016 [AUTHORITY PAPER NO. 256.8]
TO RECEIVE AND CONSIDER THE REVISED INFORMATION AND COMMUNICATIONS TECHNOLOGY POLICY OF ERA. [AUTHORITY 71 MIN 702/256/2015 PAPER NO. 256.9]
TO RECEIVE AND CONSIDER THE BUDGET ESTIMATES OF THE UGANDA ELECTRICITY GENERATION COMPANY LIMITED FOR THE 72 MIN 703/256/2015 FINANCIAL YEAR 2015/16 [AUTHORITY PAPER NO. 256.10]
TO RECEIVE AND CONSIDER THE BUDGET ESTIMATES OF THE UGANDA ELECTRICITY DISTRIBUTION COMPANY LIMITED FOR THE 73 MIN 704/256/2015 FINANCIAL YEAR 2015/16 [AUTHORITY PAPER NO. 256.11] TO RECEIVE AND CONSIDER AN APPLICATION FOR LICENSE MODIFICATION BY THE UGANDA ELECTRICITY DISTRIBUTION 74 MIN 705/256/2015 COMPANY LIMITED [AUTHORITY PAPER NO. 256.12]
TO RECEIVE AND CONSIDER AN APPLICATION FOR PERMIT EXTENSION BY KEERE POWER COMPANY LIMITED FOR THE 75 MIN 706/256/2015 PROPOSED 6.3 MW HYDROPOWER PROJECT ON RIVER KEERE IN KWEEN DISTRICT [AUTHORITY PAPER NO. 256.13]
TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF FINANCIAL CLOSE OF LICENSE NO. 015/120 ISSUED TO 76 MIN 707/256/2015 ARPE LIMITED [AUTHORITY PAPER NO. 256.15]
TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF FINANCIAL CLOSE OF LICENSE NO. 015/132 ISSUED TO 77 MIN 708/256/2015 ACCESS SOLAR UGANDA LIMITED [AUTHORITY PAPER NO. 256.16]
71 ANNUAL REPORT 2015 - 16 NO MINUTE ACTION ITEM TO RECEIVE AND CONSIDER THE APPLICATION FOR LICENSE MODIFICATION AND TARIFF REVIEW FOR KILEMBE INVESTMENTS 78 MIN 709/256/2015 LIMITED (KIL) [AUTHORITY PAPER NO. 256.17]
TO RECEIVE AND CONSIDER THE APPLICATION FOR LICENSE MODIFICATION AND TARIFF REVIEW FOR PADER-ABIM COMMUNITY 79 MIN 710/256/2015 MULTI-PURPOSE ELECTRIC COOPERATIVE SOCIETY LIMITED (PACMECS). [AUTHORITY PAPER NO. 256.18]
TO RECEIVE AND CONSIDER THE APPLICATION FOR LICENSE MODIFICATION AND TARIFF REVIEW FOR BUNDIBUGYO ENERGY 80 MIN 711/256/2015 COOPERATIVE SOCIETY LIMITED (BECS). [AUTHORITY PAPER NO. 256.19]
257TH AUTHORITY MEETING HELD ON WEDNESDAY 27TH JANUARY 2016 AT IMPERIAL ROYALE HOTEL KAMPALA
TO RECEIVE AND CONSIDER THE APPLICATION FOR TARIFF ADJUSTMENT FOR THE FIRST QUARTER OF 2016 BY WEST NILE RURAL 81 MIN 718/257/2016 ELECTRIFICATION COMPANY LIMITED (WENRECO) [AUTHORITY PAPER NO.257.2]
MIN 719/257/2016 TO RECEIVE AND CONSIDER THE APPLICATION FOR RETAIL TARIFF ADJUSTMENT BY KALANGALA INFRASTRUCTURE SERVICES 82 [AUTHORITY PAPER NO.257.3]
TO RECEIVE AND CONSIDER THE APPLICATION FOR THE PAYMENT OF A DEEMED ENERGY CLAIM BY HYDROMAXX [AUTHORITY 83 MIN 720/257/2016 PAPER No.257.4]
TO RECEIVE AND CONSIDER THE NOTICE OF INTENDED APPLICATION FOR A LICENSE FOR THE DEVELOPMENT OF THE PROPOSED 84 MIN 721/257/2016 12 MW SISI HYDROPOWER PROJECT. [AUTHORITY PAPER NO.257.5]
TO RECEIVE AND CONSIDER THE APPLICATION FOR A LICENSE BY NDUGUTU POWER COMPANY LTD FOR THE 4.8 MW 85 MIN 723/257/2016 HYDROPOWER PROJECT IN BUNDIBUGYO DISTRICT. [AUTHORITY PAPER NO.257.8]
TO RECEIVE AND CONSIDER THE REVIEW OF LICENSE NO. ERA/LIC/GEN/015/134 AND ERA/LIC/GEN/015/135 OF MSS XSABO 86 MIN 724/257/2016 POWER LIMITED [AUTHORITY PAPER NO.257.9] TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF PERIOD OF FINANCIAL CLOSE BY HDROMAX NKUSI LIMITED. 87 MIN 725/257/2016 [AUTHORITY PAPER NO.257.10] TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF PERIOD OF FINANCIAL CLOSE BY BUTAMA HYDRO 88 MIN 726/257/2016 ELECTRICITY COMPANY LIMITED. [AUTHORITY PAPER NO.257.11] TO RECEIVE AND CONSIDER THE APPLICATION FOR A LICENSE BY MAYUGE SUGAR INDUSTRIES LIMITED FOR THE 23 MW 89 MIN 727/257/2016 BAGASSE CO-GENERATION POWER PLANT IN MAYUGE DISTRICT [AUTHORITY PAPER NO.257.12]
72 ANNUAL REPORT 2015 - 16 TO RECEIVE AND CONSIDER THE ERA HALF YEAR BUDGET PERFORMANCE REPORT FOR THE FINANCIAL YEAR 2015/16. 90 MIN 728/257/2016 [AUTHORITY PAPER NO. 257.16. (A)] TO RECEIVE AND CONSIDER THE REPORT OF THE HUMAN RESOURCES COMMITTEE MEETING NO. 2 OF FINANCIAL YEAR 2015/16. 91 MIN 729/257/2016 [AUTHORITY PAPER NO. 257.17]
258TH AUTHORITY MEETING FOR THE MONTH OF FEBRUARY 2016 HELD ON 2ND MARCH 2016 AT IMPERIAL ROYALE HOTEL KAMPALA
TO RECEIVE AND CONSIDER THE APPLICATION FOR TARIFF REVIEW AND THE TARIFF METHODOLOGY FOR KISIIZI HOSPITAL 92 MIN 736/258/2016 POWER LIMITED [AUTHORITY PAPER NO. 258.2]
TO RECEIVE AND CONSIDER THE APPLICATION FOR LICENSE MODIFICATION BY ALBATROS ENERGY (U) LIMITED [AUTHORITY 93 MIN 737/258/2016 PAPER NO.258.3] TO RECEIVE AND CONSIDER THE REVIEW OF THE POWER PURCHASE AGREEMENT BETWEEN THE UGANDA ELECTRICITY 94 MIN 738/258/2016 TRANSMISSION COMPANY LIMITED (UETCL) AND MAYUGE SUGAR INDUSTRIES LTD RELATING TO A 23 MW BAGASSE PLANT IN MAYUGE DISTRICT. [AUTHORITY PAPER NO. 258.4] TO RECEIVE AND CONSIDER THE ADJUSTMENT OF ELECTRICITY CONNECTION COSTS FOR A NO-POLE SERVICE UNDER THE 95 MIN 739/258/2016 OUTPUT BASED AID PROGRAM (OBA). [AUTHORITY PAPER NO. 258.7] TO RECEIVE AND CONSIDER THE ELECTRICITY SUPPLY INDUSTRY (ESI) STANDARDIZED COMPLAINTS HANDLING GUIDELINES. 96 MIN 740/258/2016 [AUTHORITY PAPER NO. 258.8]
TO RECEIVE AND CONSIDER THE APPLICATION FOR CERTIFICATE OF EXEMPTION BY GRS COMMODITIES LTD FOR THE 10KWp 97 MIN 741/258/2016 SOLAR PHOTOVOLTAIC POWER SYSTEM ON KITOBO ISLAND IN KALANGALA DISTRICT. [AUTHORITY PAPER NO. 258.9]
TO RECEIVE AND CONSIDER THE APPLICATION BY ABSOLUTE ENERGY LIMITED FOR A LICENSE EXEMPTION FOR GENERATION, 98 MIN 742/258/2016 DISTRIBUTION AND SALE OF ELECTRICITY FROM A 230KW SOLAR-DIESEL HYBRID POWER SYSTEM ON KITOBO ISLAND IN KALANGALA DISTRICT. [AUTHORITY PAPER NO. 258.10 ] 99 MIN 744/258/2016 TO RECEIVE AND CONSIDER AN ADDITIONAL SIGNATORY TO THE ERA’S BANK ACCOUNTS. [AUTHORITY PAPER NO. 258.12 ]
260TH AUTHORITY MEETING HELD ON WEDNESDAY 6TH APRIL 2016 AT IMPERIAL ROYALE HOTEL
TO RECEIVE AND CONSIDER THE TARIFF REVIEW OF UMEME LIMITED FOR THE SECOND QUARTER OF 2016 [AUTHORITY PAPER 100 MIN 766/260/2016 No. 260.2] TO RECEIVE AND CONSIDER THE TARIFF REVIEW FOR THE SECOND QUARTER OF 2016 AND FINANCIAL PERFORMANCE REPORT 101 MIN 767/260/2016 FOR KALANGALA INFRASTRUCTURE SERVICES LIMITED (KIS) [AUTHORITY PAPER No. 260.3]
73 ANNUAL REPORT 2015 - 16 TO RECEIVE AND CONSIDER THE TARIFF REVIEW OF THE WEST NILE RURAL ELECTRIFICATION COMPANY LIMITED (WENERCO) 102 MIN 768/260/2016 FOR THE SECOND QUARTER OF 2016 [AUTHORITY PAPER No. 260.4] TO RECEIVE AND CONSIDER THE MODIFICATION OF LICENCE ISSUED TO WEST NILE RURAL ELECTRIFICATION COMPANY LIMITED 103 MIN 769/260/2016 (WENERECO) [AUTHORITY PAPER No. 260.5]
TO RECEIVE AND CONSIDER THE REPORT OF THE HUMAN RESOURCES COMMITTEE MEETING NO. 3 [AUTHORITY PAPER No. 104 MIN 771/260/2016 260.7]
TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF PERMITS 2014/073, 2014/074, 2014/075, 2014/076 TO 105 MIN 772/260/2016 CARRY OUT FEASIBILITY STUDIES AND OTHER ACTIVITIES LEADING TO THE DEVELOPMENT OF 4 SMALL HYDROPOWER PROJECTS BY UGANDA ENERGY CREDIT CAPITALIZATION COMPANY LIMITED [AUTHORITY PAPER No. 260.8]
TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF PERMIT NO. 2013/077 BY MARMA TECHNICAL SERVICES 106 MIN 773/260/2016 LIMITED - KOL SERVICES LIMITED JOINT VENTURE [AUTHORITY PAPER No. 260.9]
TO RECEIVE AND CONSIDER THE APPLICATION BY UGANDA ELECTRICITY GENERATION COMPANY LTD FOR ADDITIONAL 107 MIN 774/260/2016 FUNDS FOR CONSULTANCY ON THE BUJAGALI HYDRO ELECTRICITY POWER PLANT [AUTHORITY PAPER No. 260.10 ] TO RECEIVE AND CONSIDER THE POWER PURCHASE AGREEMENT (PPA) BETWEEN THE UGANDA ELECTRICITY TRANSMISSION 108 MIN 775/260/2016 COMPANY LIMITED AND TIMEX BUKINDA HYDRO (U) LIMITED [AUTHORITY PAPER No. 260.11 ] TO RECEIVE AND CONSIDER THE POWER PURCHASE AGREEMENT (PPA) BETWEEN THE UGANDA ELECTRICITY TRANSMISSION 109 MIN 776/260/2016 COMPANY LIMITED AND PA TECHNICAL SERVICES LIMITED [AUTHORITY PAPER No. 260.12 ]
THE 261ST AUTHORITY MEETING FOR THE MONTH OF APRIL 2016 HELD ON WEDNESDAY 27TH APRIL 2016 AT IMPERIAL ROYALE HOTEL
TO RECEIVE AND CONSIDER THE APPLICATION FOR LICENSE BY TIMEX BUKINDA HYDRO (U) LIMITED IN RESPECT OF THE 6.5 MW 110 MIN 787/261/2016 HYDRO POWER PLANT IN KIBAALE DISTRICT [AUTHORITY PAPER NO. 261.3] TO RECEIVE AND CONSIDER THE GRID ANALYSIS REPORT FOR THE INTEGRATION OF WIND /SOLAR GENERATION PLANTS BY THE 111 MIN 788/261/2016 UGANDA ELECTRICITY TRANSMISSION COMPANY LIMITED (UETCL) [AUTHORITY PAPER NO. 261.4]
TO RATIFY THE AUTHORITY DECISION BY CIRCULATION IN RESPECT OF THE APPLICATION BY MSS XSABO POWER LIMITED FOR 112 MIN 789/261/2016 THE MODIFICATION OF ITS LICENSES. [AUTHORITY PAPER NO. 261.5]
TO RECEIVE AND CONSIDER THE POWER PURCHASE AGREEMENT BETWEEN UETCL AND NYAMAGASANI 2 HPP LIMITED 113 MIN 790/261/2016 RELATING TO A 5 MW POWER GENERATION PLANT AT MUSASA VILLAGE, KYONDO SUB COUNTY, KASESE DISTRICT. [AUTHORITY PAPER NO. 261.6]
74 ANNUAL REPORT 2015 - 16 TO RECEIVE AND CONSIDER THE POWER PURCHASE AGREEMENT BETWEEN UETCL AND RWENZORI HYDRO (PVT) LTD RELATING 114 MIN 791/261/2016 TO A 15 MW NYAMAGASANI 1 SMALL HPP IN KABINGO VILLAGE, KYARUMBA SUB COUNTY IN KASESE DISTRICT. [AUTHORITY PAPER NO. 261.7]
TO RECEIVE AND CONSIDER THE REPORT ON ENVIRONMENTAL COMPLIANCE PERFORMANCE OF LICENSEES AT OPERATION 115 MIN 792/261/2016 STAGE AS AT THE 3rd QUARTER OF 2015 [AUTHORITY PAPER NO. 261.8]
116 MIN 793/261/2016 TO RECEIVE AND CONSIDER THE REPORT OF THE AUDIT COMMITTEE MEETING NO. 4 [AUTHORITY PAPER NO. 261.9]
TO RECEIVE AND CONSIDER THE APPLICATION FOR EXTENSION OF PERIOD TO ACHIEVE FINANCIAL CLOSE FOR LICENSE 117 MIN 794/261/2016 NO.116 LUBILIA HPP. [AUTHORITY PAPER NO. 261.10]
TO RECEIVE AND CONSIDER THE APPLICATION FOR LICENSE MODIFICATION BY SITI II HPP LIMITED. [AUTHORITY PAPER NO. 118 MIN 795/261/2016 261.11]
TO RECEIVE AND CONSIDER THE LICENSE APPLICATION FOR GENERATION AND SALE OF ELECTRICITY BY EMERGING POWER 119 MIN 796/261/2016 LIMITED FROM THE PROPOSED 15 MW SOLAR-PHOTOVOLTIAC POWER PLANT IN MAYUGE DISTRICT. [AUTHORITY PAPER NO. 261.12]
TO RECEIVE AND CONSIDER THE APPLICATION FOR LICENSE FOR GENERATION AND SALE OF ELECTRICITY FROM A 50 MW 120 MIN 797/261/2016 SOLAR PV PLANT BY TORORO PV POWER COMPANY LIMITED [AUTHORITY PAPER NO. 261.13] TO RECEIVE AND CONSIDER THE APPLICATION FOR ADJUSTMENT OF THE END-USER ELECTRICITY TARIFF AND MODIFICATION 121 MIN 798/261/2016 OF LICENSE BY KYEGEGWA RURAL ELECTRICITY COOPERATIVE SOCIETY LIMITED. [AUTHORITY PAPER NO. 261.14]
TO RECEIVE AND CONSIDER THE UMEME LIMITED CAPITAL INVESTMENT PLAN 2016 - ADDITIONAL REQUEST [AUTHORITY PAPER 122 MIN 799/261/2016 NO. 261.15]
262ND AUTHORITY MEETING FOR THE MONTH OF MAY 2016, HELD ON WEDNESDAY 25TH MAY 2016 AT ERA HOUSE BOARDROOM
TO RATIFY THE AUTHORITY DECISION BY CIRCULATION IN RESPECT OF THE APPLICATION FOR MODIFICATION OF LICENCE BY 123 MIN 790/262/2016 BUTAMA HYDRO ELECTRICITY COMPANY LIMITED [ AUTHORITY PAPER NO. 262.2 ]
124 MIN 791/262/2016 TO RECEIVE AND CONSIDER THE INVESTMENTS UNDERTAKEN BY UMEME LIMITED IN 2015 [AUTHORITY PAPER NO. 262.3]
TO RECEIVE AND CONSIDER THE APPLICATION FOR A LICENCE BY FREE ENERGY LTD FOR GENERATION AND DISTRIBUTION OF 125 MIN 793/262/2016 ELECTRICITY FROM THE PROPOSED 2 MW SOLAR PV POWER PLANT IN KOTIDO DISTRICT AND 2 MW SOLAR PV POWER PLANT IN KAABONG DISTRICT. [AUTHORITY PAPER NO. 262.5]
75 ANNUAL REPORT 2015 - 16 TO RECEIVE AND CONSIDER THE APPLICATION FOR A LICENCE BY PA TECHNICAL SERVICES LIMITED, FOR THE DEVELOPMENT 126 MIN 794/262/2016 OF A 9.6 MW HYDRO POWER PLANT IN KIBAALE DISTRICT. [AUTHORITY PAPER NO. 262.6]
TO RECEIVE AND CONSIDER THE APPLICATION FOR CONSENT TO CHANGE IN SHAREHOLDING IN BUJAGALI ENERGY LIMITED. 127 MIN 795/262/2016 [AUTHORITY PAPER NO. 262.7]
128 MIN 796/262/2016 TO RECEIVE AND CONSIDER THE FINAL REPORT OF THE ERA REBRANDING EXERCISE. [AUTHORITY PAPER NO. 262.8]
TO RECEIVE AND CONSIDER THE NOTICE OF INTENDED APPLICATION (NIA) BY MPANGA HYDRO UGANDA LIMITED FOR A 129 MIN 797/262/2016 LICENCE TO DEVELOP A 9 MW HYDROPOWER PLANT ON RIVER NYAMWAMBA IN KASESE DISTRICT. [AUTHORITY PAPER NO. 262.9] TO RECEIVE AND CONSIDER THE NOTICE OF INTENDED APPLICATION (NIA) BY CACL CONSULTING LIMITED FOR A LICENCE TO 130 MIN 798/262/2016 DEVELOP A 1 MW HYDROPOWER PLANT ON THE RIVER MUVUMBE IN KABALE DISTRICT. [AUTHORITY PAPER NO. 262.10 ] TO RECEIVE AND CONSIDER THE NOTICE OF INTENDED APPLICATION (NIA) BY UGANDA ELECTRICITY GENERATION COMPANY 131 MIN 799/262/2016 LIMITED FOR A LICENCE TO DEVELOP A 4.4 MW HYDROPOWER PROJECT ON RIVER ANYAU, ODUPI SUB COUNTY, ARUA DISTRICT. [AUTHORITY PAPER NO. 262.11 ] TO RECEIVE AND CONSIDER THE NOTICE OF INTENDED APPLICATION (NIA) BY UGANDA ELECTRICITY GENERATION COMPANY 132 MIN 800/262/2016 LIMITED FOR A LICENCE TO DEVELOP A 2.02 MW HYDROPOWER PROJECT ON RIVER KOCH, KOCH SUB COUNTY, YUMBE DISTRICT. [AUTHORITY PAPER NO. 262.12 ]
TO RECEIVE AND CONSIDER THE NOTICE OF INTENDED APPLICATION (NIA) BY UGANDA ELECTRICITY GENERATION COMPANY 133 MIN 801/262/2016 LIMITED FOR A LICENCE TO DEVELOP A 4.2 MW HYDROPOWER PROJECT ON RIVER ASWA, PURONGO SUB COUNTY, NWOYA DISTRICT [AUTHORITY PAPER NO. 262.13 ]
134 MIN 803/262/2016 NOTICE OF BREACH OF LICENCE CONDITIONS BY THE UGANDA ELECTRICITY TRANSMISSION COMPANY LIMITED
263RD AUTHORITY MEETING FOR THE MONTH OF JUNE 2016, HELD ON FRIDAY 8TH JULY 2016 AT ERA HOUSE BOARDROOM
TO RECEIVE AND CONSIDER THE POWER SALES AGREEMENT BETWEEN RWANDA ENERGY GROUP AND UETCL. [AUTHORITY 135 MIN 809/263/2016 PAPER NO. 263.2] TO RECEIVE AND CONSIDER THE POWER SALES AGREEMENT BETWEEN UEDCL AND UETCL FOR LIRA SERVICE TERRITORY 136 MIN 810/263/2016 [AUTHORITY PAPER NO. 263.3]
TO RECEIVE AND CONSIDER THE POWER SALES AGREEMENT BETWEEN UEDCL AND UETCL FOR THE NORTH EAST SERVICE 137 MIN 811/263/2016 TERRITORY [AUTHORITY PAPER NO. 263.4]
138 MIN 812/263/2016 TO RECEIVE AND CONSIDER THE STANDARDISED WHEELING AGREEMENT [AUTHORITY PAPER NO. 263.5]
76 ANNUAL REPORT 2015 - 16 TO RECEIVE AND CONSIDER THE POWER SALES AGREEMENT BETWEEN UGANDA ELECTRICITY TRANSMISSION COMPANY 139 MIN 813/263/2026 LIMITED AND TORORO PV POWER COMPANY LIMITED [AUTHORITY PAPER NO. 263.6] TO RECEIVE AND CONSIDER THE POWER SALES AGREEMENT BETWEEN UGANDA ELECTRICITY TRANSMISSION COMPANY 140 MIN 814/263/2016 LIMITED AND EMERGING POWER UGANDA LIMITED. [AUTHORITY PAPER NO. 263.7] TO RECEIVE AND CONSIDER THE APPLICATION FOR TARIFF ADJUSTMENT FOR THE THIRD QUARTER OF 2016 BY KALANGALA 141 MIN 815/263/2016 INFRASTRUCTURE SERVICES LTD (KIS) [AUTHORITY PAPER NO. 263.8 ]
TO RECEIVE AND CONSIDER THE APPLICATION FOR LICENCE RENEWAL BY TIBET HIMA MINING COMPANY LIMITED [AUTHORITY 142 MIN 816/263/2016 PAPER NO. 263.9]
TO RECEIVE AND CONSIDER THE APPLICATION FOR CONSENT TO CHANGE IN SHAREHOLDING OF BUJAGALI ENERGY LIMITED 143 MIN 817/263/2016 (BEL). [AUTHORITY PAPER NO. 263.10]
TO RECEIVE AND CONSIDER THE NOTICE OF INTENDED APPLICATION FOR THE PROPOSED 7 MW MANAFWA SMALL 144 MIN 817/263/2016 HYDROPOWER PROJECT BY LTL PROJECTS LIMITED [AUTHORITY PAPER NO. 263.11]
TO RECEIVE AND CONSIDER THE REQUEST FOR PERMIT EXTENSION FOR THE PROPOSED CRESTA SMALL HYDROPOWER PROJECT 145 MIN 818/263/2016 BY CPCS TRANSCOM LIMITED [AUTHORITY PAPER NO. 263.12]
TO RECEIVE AND CONSIDER THE APPLICATION FOR LICENCE MODIFICATION BY TORORO SOLAR NORTH LIMITED [AUTHORITY 146 MIN 819/263/2016 PAPER NO. 263.13]
TO RECEIVE AND CONSIDER THE POLICY ON PROVISIONING FOR BAD DEBTS, DOUBTFUL DEBTS AND WRITE OFFS. [AUTHORITY 147 MIN 819/263/2016 PAPER NO. 263.14 ]
TO RECEIVE AND CONSIDER THE LICENCE APPLICATION BY MAHOMA HYDRO LIMITED FOR A 2.7 MW MAHOMA HYDRO 148 MIN 820/263/2016 POWER PROJECT IN KABAROLE DISTRICT. [AUTHORITY PAPER NO. 263. 15 ]
149 MIN 820/263/2016 TO RECEIVE AND CONSIDER APPLICATIONS BY UMEME LIMITED FOR GRID EXTENSION. [AUTHORITY PAPER NO. 263. 16 ]
150 MIN 822/263/2016 TO RECEIVE AND CONSIDER AN APPLICATION BY UMEME LIMITED FOR GRID EXTENSION. [AUTHORITY PAPER NO. 263.17]
151 MIN 823/263/2016 TO RECEIVE AND CONSIDER THE TARIFF REVIEW FOR THE THIRD QUARTER OF 2016 [AUTHORITY PAPER NO. 263.18]
TO RECEIVE AND CONSIDER THE TARIFF REVIEW APPLICATION BY KILEMBE INVESTMENTS LIMITED (KIL) [AUTHORITY PAPER NO. 152 MIN 825/263/2016 263.19]
77 ANNUAL REPORT 2015 - 16 TO RECEIVE AND CONSIDER THE APPLICATION FOR TARIFF ADJUSTMENT FOR THE THIRD QUARTER OF 2016 BY WEST NILE RURAL 153 MIN 826/263/2016 ELECTRIFICATION COMPANY LTD (WENRECO) [AUTHORITY PAPER NO. 263.20]
TO RECEIVE AND CONSIDER THE TARIFF REVIEW APPLICATION BY PADER-ABIM COMMUNITY MULTI-PURPOSE ELECTRICITY 154 MIN 827/263/2016 COOPERATIVE SOCIETY (PACMECS) [AUTHORITY PAPER NO. 263.21]
TO RECEIVE AND CONSIDER THE TARIFF REVIEW APPLICATION BY BUNDIBUGYO ELECTRICITY COOPERATIVE SOCIETY (BECS) 155 MIN 828/263/2016 [AUTHORITY PAPER NO. 263. 22 ]
156 MIN 829/263/2016 TO RECEIVE AND CONSIDER THE REPORT OF THE TECHNICAL COMMITTEE. [AUTHORITY PAPER NO. 263.23]
78 ANNUAL REPORT 2015 - 16 The ERA Board during a Statutory Inspection of the Electro-Maxx Power Plant in Tororo District. 79 ANNUAL REPORT 2015 - 16 ELECTRICITY REGULATORY AUTHORITY
ERA House, Plot 15, Shimon Road, Nakasero P.O. Box 10332, Kampala Tel: +256 393 260 166, +256 414 341 852, Consumer Affairs Hotline: +256 200 506 000 Fax: +256 414 341 647 Email: [email protected], Website: www.era.or.ug 80 ANNUAL REPORT 2015 - 16