July 2022
 
Purpose of the Act
 
The 1999 Electricity Act was silent on a number of pertinent issues. The amendment which came into force on 28th June 2022 answers the previously unanswered issues.
 
This brief highlights key changes to the 1999 Electricity Act.
 
Composition of the Authority
 
Section 5 introduces an eligibility requirement for members of the authority. Each member is required to have a minimum qualification of a university degree. Additionally, the Act incorporates gender representation in the composition of the authority. At least one third of the members of the authority shall be women.
 
Tenure of office of board members
 
Section 7 is amended to provide for the different tenures of the five board members the Authority. The Chairperson and two members shall hold office for a period of 5 years and two other members for four years. However, the Act does not specify which members of the authority shall hold office for four or five years other than the Chairperson.
All members are eligible for reappointment but the Act does not set a limit on the number of tenures a member can serve.
The rationale for reappointment and difference in expiry of the tenure is to ensure that there is continuity on the board.
 
Functions of the authority
 
Section 10 is amended by substituting the words transmission and distribution companies for the word licensees. The Act further mandates the Authority to prescribe standardized fees in tariffs for renewable energy systems generating up to a maximum capacity of fifty megawatts or other capacity as may be determined, undertake consultancies, research and studies and may advise the Minister on any matter relating to the electricity sector.
 
Funds of the Authority
 
Section 22 is amended by increasing the levy imposed on the revenue received from generated electric energy from 0.3% to 0.7%.
 
Authority may invite applications

Section 32 is amended to provide that the Minister should be consulted in regards to the procedures adopted for the fair, open and competitive process of inviting applications.
 
Modification to licencee’s application
 
Section 44 (8) introduces a time limit within which an aggrieved licencee can exercise his or her right of appeal to the Electricity Disputes Tribunal against a decision of the Authority. The appeal must be instituted 28 days after receipt of the decision of the Authority.
 
Generation licence
 
Section 51(1) now mandates a generation licence for anyone constructing, owning or operating a generating station of a capacity of or exceeding 0.5 megawatts. This section also empowers the Authority to determine the capacity of a generating station, which requires the licence.
 
Bulk supplier
 
Section 56 is amended to empower the Authority to prescribe the terms under which a licensee may supply electricity in bulk to a holder of a distribution licence, transmission licence or directly to a specified class or category of customers. Additionally, the terms        prescribed          in          the        regulations made shall ensure equality by prohibiting undue preference to a specific class or category of customers.
 
Tariffs and Terms of Supply
 
Section 75 (7) empowers the Authority to prescribe the maximum royalties payable by generation licensees of renewable energy projects. An application for a distribution licenceshall nowinclude a net metering plan for all customer categories. Net metering is an electricity billing mechanism that allows consumers who generate some or all of their own electricity to use it at any time, instead of when it is generated. This allows for distributed sources of power generation but also requires a robust network to ensure stability of the grid.
 
Rural Electrification Fund
 
Section 64 abolishes the Rural Electrification Fund and replaces it with the Electricity Development Fund. The Act now widens the focus from rural development to national development of electricity access. This shows government’s commitment to increase electricity penetration and access.

 
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Offences relating to licenses.
 
Section 83 was amended to increase the fine on conviction from one hundred currency points to ten thousand currency points and in the case of continuing contravention, the fine increased from ten currency points to five hundred currency points.
 
Offences committed by a body corporate.
 
Section 83A is inserted to provide for offences committed by a body corporate. It states that a body corporate and an individual with whose consent or neglect an offence is committed are both liable to be prosecuted and punished.
 
Power of Authority to impose a fine
 
Section 83B empowers the authority to impose a fine where it is satisfied that a licensee contravenes any condition of a license or fails to achieve a standard of performance prescribed under the Act. The authority must give notice to the licensee before imposing the fine and the licensee can make any representations to the authority. A decision will be communicated within 7 days.
 
A licensee aggrieved by the decision can appeal to the Tribunal within twenty-eight days of the decision.
 
Interference with meters, works or public lamp.
 
Section 85A provides for the offence of Interference with meters, works or public lamp. It elaborately explains the acts that constitute the offence and imposes a punishment on one who is liable on conviction to a fine not exceeding fifty thousand currency points or imprisonment not exceeding fifteen years or both.
 
Theft of Electricity.
 
Section 86A elaborates what acts one must do to commit the offence of theft of electricity. It states that an individual who steals electricity commits an offence and is liable to a fine not exceeding twenty thousand currency points or imprisonment not exceeding ten years or both. Where the electricity abstracted, consumed or used in this provision exceeds 10kilowatts theconvictedpersoninaddition to thepenaltyimposedshallbeliableto paytentimes the cost of the electricity stolen. If it exceeds 10 kilowatts, they shall be liable to pay twenty times the cost of the electricity stolen.
 
General Penalty
 
Section 89 increases the fine for offences where no penalty is expressly provided for from ten currency points to fifty thousand currency points and incase the offence is continuously committed from one currency point to five hundred currency points.
It also increases the penalty beyond a fine to imprisonment not exceeding twelve years.
 
Section 93 Establishment of a tribunal
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Section 93 was amended to include the composition of a tribunal. It consists of a Chairperson, a Vice Chairperson and five other members.
 
Termination of appointment
 
Section 101 is amended to state that, the Minister is required to consult the Judicial Service Commission in case of removal of Chairperson or Vice Chairperson and consult the Public Service Commission in the case of other members of the Tribunal.
 
Arrangement of Business
 
Section 104 provides that the Vice Chairperson shall discharge thefunctions of theChairperson where the chairperson is unable to carry out his functions or where there is a vacancy in the office of the Chairperson.
 
Constitution of the Tribunal for exercise for powers
 
Section   105    is   amended   to   empower    the Chairperson to constitute the Tribunal into panels, which can exercise the powers of the tribunal. The Chairperson also has the power to transfer a case from one panel to another on application by a party.
 
Independence of the Tribunal
 
Sections 108A to 108E provide for the tribunal to be independent of any government entity and manage its own finances.
 
Procedure of tribunal
 
Section 112 includes appointment of any other staff by the tribunal in consultation with the Public Service Commission for the functioning of the registry. 
 
Immunity of Tribunal members
 

Section 112A provides for immunity of Tribunal members, both current and former, from any proceedings that may be instituted against them for any acts done in good faith in the discharge of their functions.
 
Procedure for dealing with complaints from consumer
 

Section 118A introduces the procedure by which the licensee may deal with complaints from a consumer. The licensee shall establish procedures for dealing with the complaints and publish the approved procedures in a manner that the authority may require.
 
Power to make regulation
 
Section 119 provides for the need by the authority to consult with the Minister before making regulations

 

and specifically provides for the various provisions that should be in the regulations. 
 
Shareholding of Successor Company and consequential      amendment       to         the        Public Enterprises Reform and Divestiture Act
 
Section 125 provides that the three successor companies, Uganda Electricity Generation Company

Limited,    the   Uganda    Electricity   Transmission Company Limited and the Uganda Electricity Distribution Company Limited the conditions shall continue to exist and the board of directors and the secretary of every successor company incorporated under section 125 shall cooperate with the Minister in the transfer of shares.