Cost of electricity service and tariff affordability study (Uganda)
Context
ERA is the regulatory authority for the generation, transmission, distribution, sale, export and import of electricity in Uganda. It aims to establish an economic regulatory framework to determine the revenue requirements of the various stakeholders and to set appropriate electricity tariffs.
Objective
Assist ERA in :
- Assessing the overall costs of the generation, transmission, and distribution segments
- Determining electricity tariffs that contribute to economic efficiency, ensure the sector’s financial sustainability, and take into account social and equity considerations
Our contribution
In partnership with RICARDO, the ICEA team carried out the following activities:
- Development of a tariff determination model :
- Analysis of tariff regulation
- Development of a technical-financial model
- Calculation and allocation of service costs by segment, type, and voltage level
- Calculation of required revenues
- Development of tariff structures
- Assessment of tariffs’ affordability :
- Review of existing surveys
- Carrying out a survey of consumers (households, businesses, and industry) throughout the country
- Analysis of the ability and willingness to pay for electricity
We have used our expertise in modelling and calculating service costs, as well as our experience with ability/willingness-to-pay surveys, to propose a tariff calculation tool that takes into account economic, financial and social imperatives.
Need advice on your project ?
Espelia supports local authorities, public stakeholders and their partners in the design, management and transformation of local public policies. A consulting firm committed to serving the public interest, Espelia mobilises strategic, legal, financial and operational expertise to help territories build sustainable and resilient solutions.
