Consultancy Services for the study on the new customer connections, distribution system losses, distribution operation and maintenance costs, investment requirement, quality of service, reliability of service and non-collection rates for Umeme Limited ( May 2018-April 2019): Governance Systems International was part of the consortium led by TATA Limited that provided consultancy services for the study on the new customer connections, distribution system losses, distribution operation and maintenance costs, investment requirement, quality of service, reliability of service and non-collection rates for Umeme Limited.
The Government of Uganda (GoU) implemented reforms in the Electricity Supply Industry starting in the late 1990s. These reforms culminated into the enactment of the Electricity Act (1999) Cap.145. Some of the key objectives of these reforms were to reduce system losses, attract private investment, reduce the subsidy burden on government, and improve the overall commercial performance of the Electricity Supply Industry.
The distribution assets owned by the Uganda Electricity Distribution Company Limited (UEDCL) were leased to a private company (Umeme Limited) under a 20-year concession effective 1st March 2005. Consequently, the Electricity Regulatory Authority issued two licensees to Umeme Limited; the License for Distribution of Electricity (No. 047), and the License for Supply of Electricity (No. 048). The Tariff Methodology outlines the principles, guidelines and formulae for Tariff determination.
The methodology is premised on a hybrid of a Rate of Return regulation and an Incentive Based Economic Regulation framework. Under the Incentive Based Economic Regulation Framework, the Tariff Methodology provides for periodic review of the Tariff Performance Parameters of; New customer connections, Overall Distribution Loss (LF), Total Uncollected Debt Factor (TUCF), Distribution Operation and Maintenance Costs (DOMC), and Days Lag (DY).
