Electricity Act, 1999

Section Commencement Section This Act shall come into force on a day to be appointed by the Minister by statutory instrument, and different days may be appointed for the commencement of different provisions.

Section Object of Act Section The object of this Act is to regulate the generation , transmission , distribution , sale , export, import and distribution of electrical energy in Uganda.

Section Interpretation Section In this Act, unless the context otherwise requires— " transmission facilities " means electrical facilities, including but not limited to electrical circuits, transformers, and substations operating above a voltage of thirty-three kilovolts but does not include— " apparatus " means electrical apparatus, and includes all machines, apparatus and fittings in which conductors are used or of which they form part; " area of distribution " means the area within which the holder of a distribution licence is, for the time being, authorised to distribute electrical energy ; " authority " means the Electricity Regulatory Authority established under section 4 ; " bulk supplier " means the person responsible for transmission and sale of electricity in bulk to distribution and sales companies in accordance with section 56 ; " chief executive officer " means the chief executive officer of the authority appointed under section 19 ; " company " means a company within the meaning of the Companies Act; " consumer " means any person supplied or entitled to be supplied with electrical energy for personal, industrial and commercial use but does not include a person supplie...

Section Functions of authority Section The functions of the authority are— to issue licences for— the generation , transmission , distribution or sale of electricity ; and the ownership or operation of transmission systems; to receive and process applications for licences; to prescribe conditions and terms of licences issued under this Act; to modify licences issued under this Act; to make and enforce directions to ensure compliance with licences issued under this Act; to establish a tariff structure and to investigate tariff charges, whether or not a specific complaint has been made for a tariff adjustment; to approve rates of charges and terms and conditions of electricity services provided by transmission and distribution companies; to review the organisation of generation , transmission and distribution companies or other legal entities engaged in the generation , transmission and distribution of electricity to the extent that that organisation affects or is likely to affect the operation of the electricity sector and the efficient supply of electricity ; to develop and enforce performance standards for the generation , transmission and distribution of electricity ; to encourag...

Section Conduct of functions Section The authority shall perform its functions and exercise its powers in a manner that— Notwithstanding the generality of subsection (1), the authority shall, in the performance of its functions— ensure that licensees comply with the conditions of their licences and protect the interests of consumers in respect of— is open and objective; is fair and reasonable; is nondiscriminatory; and promotes fair competition . promote efficiency, economy and safety on the part of licensees and the efficient and safe use of electricity ; ensure that licensees carry out the activities which they are licensed to perform; the prices, charges and other terms of supply of electricity ; and the quality, efficiency, continuity and reliability of the supply services; promote competition in the generation and marketing of electricity ; enable all licensees to connect to transmission systems and facilities in Uganda on a nondiscriminatory basis on terms and conditions that are fair and reasonable and, when practicable, ensure that licensees connect to distribution systems and facilities; ensure transparency in relation to the activities of the power sector and the authorit...

Section Meetings of authority Section The First Schedule to this Act has effect with respect to meetings of the authority and other matters to which it relates.

Section Special committees of authority Section The authority may appoint one or more special committees— to inquire into and advise the authority on such matters within the scope of the authority ’s functions as the authority may refer to the special committee; to exercise such powers or perform such duties of the authority as the authority may delegate or refer to the special committee. A special committee appointed under subsection (1) shall consist of a chairperson and other persons, whether members of the authority or not as the authority may determine. Subject to any directions that may be given by the authority , a special committee may regulate its own procedure.

Section Consultants Section The authority may co-opt a person to assist it on any matter if the authority is satisfied that the person 's qualifications are likely to assist the authority . A person co-opted to assist the authority under subsection (1) in relation to any matter may take part in the proceedings of the authority concerning that matter but is not entitled to vote at a meeting or take part in any other proceedings of the authority .

Section Delegation of functions Section Subject to subsection (2), the authority may, by instrument of delegation, delegate to the chairperson, a member of the authority , an officer of the authority or to a committee established under section 13 , any of the powers, duties or functions of the authority under this Act other than— The authority may delegate to any competent person , including a local government , in relation to an undertaking not exceeding two megawatts, the power to— the power to issue, reject, amend, revoke or impose conditions in respect of a licence ; the power to approve or modify tariffs; and the power to make regulations. issue, reject, impose conditions in respect of, amend or revoke a licence ; and approve or modify tariffs under this Act. The terms and conditions regulating the exercise of the powers delegated under this section shall be contained in the instrument of delegation. A person aggrieved by the decision of a person or a local government in the exercise of its powers delegated under this section may appeal to the authority . A person or a local government shall, in the exercise of a delegated power, duty or function under this section, comply wit...

Section Independence of authority Section The authority shall, subject to the declared policy of the Government and, except as is otherwise provided in this Act, be independent in the performance of its functions and duties and exercise of its powers and shall not be subject to the direction or control of any person or authority .

Section Powers of Minister Section The Minister may, from time to time, give directions in writing to the authority with respect to the policy to be observed and implemented by the authority , except that the policy shall not adversely affect or interfere with the performance of the functions and exercise of powers of the authority under this Act. The Minister shall cause a copy of any direction given to the authority under subsection (1) to be published in the Gazette .

Section Establishment of authority Section The authority is a body corporate with perpetual succession and a common seal and may— There is established the Electricity Regulatory Authority. acquire, hold and dispose of moveable and immoveable property; sue and be sued in its corporate name; do all other things as a body corporate may lawfully do.

Section Composition of authority Section The other members of the authority shall have proven experience in— The authority shall consist of five members of high moral character and proven integrity and competence appointed by the Minister with the approval of Cabinet. The Minister shall designate as chairperson of the authority one of the members who is qualified and experienced in management, economics or the electric power sector. engineering, either in the generation , transmission or distribution of electricity ; law, administration or management; finance or economics; the energy industry; or environmental matters. Of the other members of the authority , each shall be qualified in at least one of the areas specified in subsection (3). The chief executive officer shall be an ex officio member of the authority but shall not have a right to vote at any meeting of the authority .

Section Disqualification from appointment Section A person shall not be appointed to the authority who— is a shareholder, a member of the board, an employee, or the holder of a licence , of any entity operating in, or providing services to, the electricity industry likely to cause a conflict of interest; is an undischarged bankrupt; has been convicted of an offence under this Act or an offence involving fraud or dishonesty by a competent court in Uganda or elsewhere; has been convicted of an offence and sentenced to a term of imprisonment of six months or more by a competent court in Uganda or elsewhere; or is a public officer, a member of Parliament, a Minister or a member of a local government council.

Section Tenure of office of members Section A member of the authority shall hold office for a term of five years and is eligible for reappointment. A member shall not be appointed for more than two terms.

Section Termination of appointment Section The Minister shall remove from office a member of the authority who— A member of the authority may resign his or her office by sixty days' notice in writing delivered to the Minister . is adjudged bankrupt under any law in force in Uganda and has not been discharged; becomes a public officer, a member of Parliament, a Minister or a member of a local government council; is convicted of an offence under section 6 (c) or (d) or an offence under this Act by a competent court in Uganda or elsewhere; has been absent, without leave of the authority , from more than three consecutive meetings of the authority ; without reasonable cause has refused to act or has become incapable of acting for a period of at least six months; for any reason, is permanently incapable of performing the duties of a member; where information relating to the conduct of a member, which could have precluded his or her appointment if it had been made available to the Minister , is brought to the attention of the Minister ; or has neglected the duties of a member or behaves in a manner unbecoming of the office of member. Where it appears to the Minister that there is cause t...

Section Remuneration of members of authority Section The members of the authority shall be paid such subsistence or other allowances as the Minister may, with the approval of Cabinet, specify in the instrument of appointment.

Section Secretariat Section The secretary shall— The authority shall have a secretariat consisting of a chief executive officer and other staff. The authority shall have a secretary to be appointed by the authority on such terms and conditions as may be specified in the instrument of appointment. act as secretary to the authority and shall record the minutes of all proceedings of the authority ; keep the minutes and other records of the authority ; have custody of the seal of the authority ; and carry out such other functions as the authority or the chief executive officer may assign to him or her. The secretary shall, in the performance of his or her duties, be responsible to the chief executive officer .

Section Chief executive officer Section A person shall not be appointed chief executive officer who— The authority may terminate the services of the chief executive officer for— The chief executive officer shall be appointed by the authority from among persons of high standards of integrity and maturity and who have substantial qualifications or experience in administration, economics, finance, law, management, environment or technical knowledge relating to the electricity industry. is a shareholder, a member of the board, an employee, or the holder of a licence , of any entity operating in, or providing services to, the electricity industry likely to cause a conflict of interest; is an undischarged bankrupt; has been convicted of an offence under this Act or an offence involving fraud or dishonesty by a competent court in Uganda or elsewhere; has been convicted of an offence and sentenced to a term of imprisonment of six months or more by a competent court in Uganda or elsewhere; or is a public officer, a member of Parliament, a Minister or a member of a local government council. The chief executive officer shall hold office for five years on such terms and conditions as may be sp...

Section Functions of chief executive officer Section The chief executive officer is, subject to this Act, and subject, in particular, to the directions of the authority on matters of policy— responsible for the day-to-day management of the affairs of the authority and the implementation of the policy decisions of the authority ; and responsible for the control of the staff of the authority .

Section Other staff Section The authority may appoint other officers and staff of the secretariat on such terms and conditions as may be specified in the instruments of appointment. The authority shall, with the approval of the Minister , make regulations governing the terms and conditions of employment of the staff of the authority . Notwithstanding anything in the Interpretation Act, regulations made under this section shall not be statutory instruments and shall not be required to be published in the Gazette .

Section Funds of authority Section The funds of the authority consist of— money appropriated by Parliament for the purposes of the authority ; fees prescribed by the authority for processing of licence applications charged under this Act and such other fees, including fees payable annually by licensees, as may be prescribed under this Act; a levy not exceeding 0.3 percent on the revenue received from generated electric energy; money borrowed by the authority under this Act or any other law; and grants from Government and grants, gifts or donations from other sources acceptable to the Minister and the Minister responsible for finance.

Section Estimates Section The chief executive officer shall, not less than two months before the beginning of each financial year, prepare and submit to the authority for its approval estimates of income and expenditure for that financial year. The chief executive officer may also, at any time before the end of the financial year, prepare and submit to the authority for approval any estimates supplementary to the estimates under subsection (1). The authority shall submit the estimates approved by it under this section to the Minister for his or her approval, and the Minister may, in consultation with the Minister responsible for finance, approve the estimates. No expenditure shall be made out of the funds of the authority unless the estimates in respect of the expenditure have been approved in the manner provided by this section. The authority shall not incur any expenditure exceeding its budget without the approval of the Minister .

Section Power to operate bank accounts Section The authority shall open and maintain such bank accounts as are necessary for the performance of its functions. The authority shall ensure that all money received by or on behalf of the authority is banked as soon as practicable after being received. The authority shall ensure that no money is withdrawn from or paid out of its bank accounts without its authority .

Section Borrowing powers Section The authority may, with the approval of the Minister given in consultation with the Minister responsible for finance with the approval of Parliament, borrow money from any source as may be required for meeting its obligations or for the discharge of its functions under this Act.

Section Application and investment of surplus funds Section The funds of the authority may be applied— Subject to subsection (1), the funds of the authority may be invested— Where, at the end of a financial year of the authority , and after— for the payment or discharge of its expenses, obligations or liabilities incurred in connection with the performance of its functions or exercise of its powers under this Act; and for the payment of any remuneration or allowances payable under this Act. in fixed deposit with a bank approved by the authority ; in treasury bills and securities of the Government; or in such other manner as may be approved by the authority after consultation with the Minister and the Minister responsible for finance, but not in any business licensed under this Act. setting aside the amount required for its capital expenditure and operations; making provision for bad and doubtful debts; making provision for depreciation of assets; and taking into consideration any other contingencies,

Section Financial year of authority Section The financial year of the authority shall be the twelve months beginning on the 1st July of each year and ending on the 30th June in the following calendar year.

Section Accounts and audit Section The authority shall keep proper accounts of its income and expenditure and records in relation to them. The authority shall, within four months after the end of each financial year, cause to be prepared and submitted to the Auditor General for auditing by the Auditor General or an auditor appointed by the Auditor General, a statement of account of the authority for that financial year in a form approved by the Minister responsible for finance. The Auditor General or an auditor appointed by him or her is entitled to inspect all books, papers and other records of the authority relating to all matters dealt with in any statement of account required to be prepared under subsection (2). The Auditor General shall, within two months after receiving the accounts of the authority under subsection (2), cause them to be audited and shall deliver to the authority and the Minister a copy of the audited accounts together with his or her report on the audit. The Minister shall, as soon as possible after receiving the report of the Auditor General under subsection (4), cause the report to be laid before Parliament.

Section Reports Section Every licensee shall, at the end of every financial year, prepare and submit to the authority , in a form prescribed by the authority , a report on the operations and services of the licensee and the extent to which the conditions of the licence are being followed.

Section Inspectors Section The owner or person in charge of premises entered by an inspector shall— The authority may appoint inspectors for the purposes of verifying compliance by a licensee with this Act and with the decisions of the authority under this Act. The authority shall issue to an inspector a certificate of identity verifying his or her appointment and authorising the inspector to exercise the powers conferred on him or her by this Act. An inspector exercising powers conferred on him or her by this Act shall, if requested by the person appearing to be in charge of any premises entered by the inspector in accordance with subsection (1), or by any person in relation to whom the power is sought to be exercised, produce to that person the certificate issued under subsection (2). Subject to subsection (3), an inspector may enter and inspect at any reasonable time any premises owned by or under the control of a licensee in which the inspector believes on reasonable grounds to be a document or information relevant to the enforcement of this Act and examine the document or information or remove the document or information for examination or reproduction, as the case may be. An...

Section Investigations Section The authority may investigate any licensee or system operator who commits any act or omission in breach of fair competition . A person with a complaint of a breach of fair competition against a licensee or system operator shall lodge a complaint to the authority ; and the authority shall, if it appears that a breach of competition has been committed, investigate the act or omission and where appropriate take steps in order to remedy the breach. In this section, a licensee is in breach of fair competition if he or she conducts any activity, alone or together with others, the effect of which, in the opinion of the authority , is intended to have or is likely to have the effect of restricting, distorting or otherwise preventing competition in connection with any activity licensed under this Act, or which is prejudicial to the interests of the consumers. A licensee found to be in breach of fair competition by the authority shall pay such amount of compensation to the consumer for any loss caused to him or her as the authority may determine.

Section Notice of intended application Section Notice given under subsection (1) shall be in the prescribed form and shall as far as possible contain— A person who intends to establish a project for which a licence is required under this Act shall notify the authority of the intended project. information on the financial and legal status and the technical and industrial competence and experience of the intended applicant; a description of the project and the time plan for the execution of the project; a review of the use of land for the project and the relation of the project to local authorities; a review of public and private measures necessary to carry out the project; information relating to permissions required from public authorities; a description of the impact of the project on electricity supply , socioeconomics, cultural heritage, the environment, natural resources and wildlife; and any other relevant information requested by the authority .

Section Publication of advertisement Section Publication of a notice under subsection (1) shall— The authority shall, within thirty days after receipt of a notice under section 29 , cause the notice to be published in the Gazette and in at least one national newspaper of wide circulation in Uganda. contain a summary of the notice; and inform members of the public that the notice may be inspected at the offices of the authority and at a public office within the jurisdiction of the local governments affected by the project. The authority shall invite directly affected parties and affected public agencies to make comments on the notice within a fixed period of not less than thirty days after publication of the notice.

Section Permits Section The authority may, not more than thirty days after the receipt of the comments under section 30 , issue a permit in the prescribed form to the intended applicant. A permit issued under subsection (1) shall allow the intended applicant to carry out studies and any other activity that may be necessary to enable the intended applicant to prepare an application for a licence .

Section Authority may invite applications Section Notwithstanding sections 29 , 30 and 31 , the authority shall, through a fair, open and competitive process in accordance with procedures prescribed by the authority by regulations or any other law, invite applications for any licence under this Act.

Section Applications Section An application for a licence shall be submitted to the authority and shall contain— The authority — the legal and financial status of the applicant; a technical and economic description of the project; a description of how the project fits in with the existing and planned power supply system; the planned time of commencement and completion of the construction of the project; a view of the project's adaption to the landscape, including necessary maps and drawings; the impact of the project on public interests and possible mitigation; the results of assessments, including environmental impact assessments, and studies carried out and reports of those assessments and studies; impacts of the project on private interests, including the interests of affected landowners and holders of other rights; and consents and permits required under any other law. An application shall be accompanied by an evaluation by the applicant of all comments made under section 30 . The authority shall within thirty days after receipt of the application, confirm in writing to the applicant, that the application is complete in all aspects. may require an applicant to make such arrange...

Section Processing of applications Section The authority shall process all applications for a licence expeditiously and in any case not later than one hundred and eighty days after the authority receives the application.

Section Publication of notice of applications Section A notice published under subsection (1) shall— The authority shall, within forty-five days after receiving the application, cause a notice of the application to be published in the Gazette and in at least one national newspaper of wide circulation in Uganda. indicate the receipt of the application for a licence ; contain a description of the nature and location of the proposed undertaking; inform members of the public that the application may, within the limits of commercial confidentiality, be inspected at the offices of the authority ; invite directly affected parties and local authorities in areas affected by the project who object to the granting of the licence , whether on personal, environmental or other grounds, to lodge with the authority an objection within a specified time, being not less than thirty days of the notice.

Section Objection to grant of licence Section An affected party may lodge with the authority an objection to the grant of a licence , setting out the grounds of the objection.

Section Factors to be considered for application Section The authority shall, in granting or rejecting an application for a licence , take into consideration, as far as is adequate for the project applied for— the energy needs of the country, region or community; the impact of the operations of the undertaking on the social, cultural and recreational life of the community; the need to protect the environment and to conserve the natural resources; land use and siting or route of the project; the costs of the project; the ability of the applicant to operate in a manner designed to protect the health and safety of users of the service for which the licence is required and other members of the public who would be affected by the operations of the applicant; the technical, economic and financial capacity of the applicant to render the service for which the licence is required; energy efficiency; any representations and objections made under section 36 ; other public and private interests affected by the operation for which the licence is required; and the price or tariff offered. Notwithstanding subsection (1), the authority shall, in granting a licence , take into consideration the pol...

Section Refusal to grant licence Section The authority shall, where it refuses to grant a licence , give the applicant a statement of its reasons for the refusal within thirty days after the refusal. A person aggrieved by the refusal of the authority to grant a licence may appeal to the tribunal .

Section Other licences Section Except for the promotion of efficiency and fair competition , nothing in this Act shall prevent the holder of a licence who has fulfilled all the obligations under that licence from applying for and obtaining any other licence under this Act.

Section Authority may order compliance Section A notice containing the direction to comply under subsection (1) shall be sent to the licensee and other directly affected parties and shall— All representations and objections made under subsection (1) shall be considered before the authority notifies the licensee and directly affected parties of its decision to either— Where the authority is of the opinion that a licensee is contravening a condition of a licence or a requirement under this Act, or regulations, codes or standards made under this Act, it shall direct the licensee to comply with that condition or requirement. contain the relevant licence condition or requirement of legislation to which the breach is related; contain the acts, omissions or other facts which, in the opinion of the authority , constitute a contravention of the condition or requirement; specify the period within which the licensee may rectify the breach or contravention; and specify the period, not being less than twenty days from the date of receiving the notice, within which representations or objections may be made by the licensee or directly affected parties. uphold the order of compliance; vary the ori...

Section Emergencies Section Where the authority , following consultation with the relevant licensee and a directly affected party, is satisfied that a licensee is contravening or likely to contravene a condition of a licence or any requirement under this Act or regulations, codes or standards made under this Act, and where the authority is satisfied that immediate action is necessary— to protect public health, safety, the environment; or to prevent the dissipation of property or assets, Where the licensee does not take action under subsection (1), the authority may take action on behalf of the licensee at the cost of the licensee .

Section Revocation of licence Section The authority may revoke a licence where it is satisfied that the licensee is not operating in accordance with the terms and conditions of the licence or provisions of this Act or any regulations, codes or standards made under this Act if the breach— A notice under subsection (2) shall set out— inflicts significant damage on public or private interests affected by the breach; lasts for a considerable period of time; takes place repeatedly; or causes the authority to have strong reasons to believe that the licensee may not be able to fulfill his or her obligations under the licence or this Act. The authority shall give a licensee forty-five days notice to show cause why the licence should not be revoked and the notice shall be published in the Gazette and in one or more newspapers circulating in the area where the breach occurred. the relevant condition of the licence or the requirement of legislation to which the breach is related; the acts, omissions or other facts which, in the authority 's opinion, constitute a contravention of the condition or legislation, and the reasons why the authority is of the opinion that any of the circumstances men...

Section Modification of licence Section The authority shall before making modifications under subsection (1) give notice to the licensee — The authority shall take into account all representations and objections before notifying the licensee of its decision to— The authority shall, following an appeal to the tribunal under subsection (4) and, taking into account the results of the appeal— The modification of a licence by the authority shall be effected by— The authority may modify the terms and conditions of a licence if the benefits of the public interest of such modification significantly exceed the disadvantages of the licensee . stating that it intends to make the modifications and setting out their effect; stating the reasons for modification and why it is of the opinion that the grounds for modification under subsection (1) are fulfilled; and specifying the period, not being less than thirty days from the date the licensee received the notice, within which representations or objections with respect to the intended modification may be made. modify the licence as intended; vary the intended modification; or withdraw the intended modification. Where the licensee is aggrieved by...

Section Licensee's application for modification Section Where, in the opinion of a licensee , a condition of its licence has become unduly onerous and is impacting on its ability to fulfill its obligations under the licence , it may apply in writing to the authority requesting that the licence be modified, setting out— The authority may make a decision to— the provision of the licence which it requires to be modified; the reason why either that condition has become unduly onerous or how circumstances have changed, rendering that condition unduly onerous; the proposed modification; and any other evidence in support of the application. The authority may modify a licence under this section only if a condition of the licence has become unduly onerous and is significantly impacting on the licensee 's ability to fulfill the obligations under the licence . The authority shall, on receipt of the application, review the application and communicate its opinion to the licensee within thirty days of receipt of the notice. approve the licensee 's application for modification of the licence ; make modifications different from those stated in the application; require further information from the...

Section Duration of licence Section Subject to any other provision of this Act, a licence shall remain in force for the period specified in it, but that period shall not in any case exceed forty years from the date of issue. A licensee may, within three years before the expiry of a licence , apply to the authority for the renewal of the licence . The authority may renew a licence on such terms and conditions determined by the authority , and on payment to the authority of the prescribed fee. This section does not apply to licences for hydropower generation of a capacity not exceeding ten megawatts.

Section Transfer of licence Section In this section— A licence shall not be transferred without the written consent of the authority . A licensee may apply to the authority , in the prescribed form and manner, for the transfer of a licence . An application under subsection (2) shall be accompanied by the application in the prescribed form of the person to whom the licensee intends to transfer the licence ; and the prescribed transfer fee shall be paid on the approval of the transfer. The authority shall satisfy itself of the legal, technical and financial competence of the transferee. "control", as used with respect to any person , means the possession, directly or indirectly, of the power to direct or cause the direction of the management of that person , whether through the ownership of shares, voting, securities, partnership or other ownership interests, agreements or otherwise; and "transfer of licence " includes the acquisition of control by the licence holder. The authority shall not unreasonably withhold consent to any application to transfer unless it has reason to believe that the public interest is likely to be prejudiced by the transfer. A licensee may, within thirty day...

Section Performance of activities Section A licensee under this Act shall carry out his or her activities in accordance with his or her licence , this Act and Regulations made under this Act.