By Ephraim Elijah
The Electricity Regulatory Authority (ERA) organizes Public Hearings to provide citizens an opportunity to voice their concerns, views, and opinions on electricity pricing. This participatory process, conducted under Section 18(2) of the Electricity (Application for Permit, Licence, and Tariff Review) Regulations, 2007, ensures transparency, accountability, and fairness in setting electricity tariffs which is key to balancing the interests of consumers and electricity providers.
The Role of Public Hearings in Tariff Review
Public hearings are vital in ERA’s tariff review process. They offer a platform for stakeholders such as government agencies, electricity sector players, consumer advocacy groups, and the general public to share their perspectives on proposed tariff adjustments. This inclusive approach fosters transparency and builds trust.
The annual tariff review is a critical regulatory exercise through which ERA assesses and adjusts electricity tariffs. This process factors in electricity generation, transmission, and distribution costs, alongside economic indicators such as inflation and exchange rates, to set fair and sustainable prices. The aim is to reflect the true cost of providing the electricity service without overburdening consumers while ensuring the sector’s financial sustainability.
Achieving efficient power pricing is complicated due to the fixed costs, inconstant rates of utilization, and differences in demand across time, seasons, user types, and regions. The Regulator faces the challenge of ensuring economic efficiency and addressing societal needs. For instance, affordable tariffs may require subsidies or pricing below production costs, particularly for low-income groups. Striking a balance between financial viability and public welfare remains a key consideration in tariff setting.
Utility companies such as Umeme Limited, Uganda Electricity Distribution Company Limited (UEDCL), Uganda Electricity Generation Company Limited (UEGCL), and Uganda Electricity Transmission Company Limited (UETCL) present detailed tariff applications during the hearings. These include cost breakdowns, financial projections, and justifications for proposed changes. Stakeholder participation ensures that diverse interests are considered, enhancing confidence in the regulatory framework and influencing fair tariff decisions.
Upcoming Public Hearing
ERA will hold its next public hearing on Thursday, December 12, 2024in Lira City, Northern Uganda. The event will also be accessible online via Zoom, X, and YouTube, enabling broader participation.
Why Participate?
Public hearings are a cornerstone of fair and transparent electricity pricing. By engaging in these discussions, stakeholders can help shape policies that reflect the true cost of electricity provision while protecting consumer interests. These hearings provide a unique opportunity to influence decisions that impact the sector and society.
Your voice matters, join the discussion to help shape the future of Uganda’s electricity sector.
Ephraim Elijah is a Graduate Trainee at the Electricity Regulatory Authority.