Uganda - Apply for a License to Transmit, Distribute or Generate Power.

ProcedureEdit

Apply In-Person
Step 1

The application to Transmit,distribute or generate power is done in Person through the Chief Executive Officer of Electricity regulatory Authority by filling in the prescribed forms.
Copies of the forms can be obtained from ERA offices of downloaded from their website.website link
One needs to obtain the following documents from the ERC before starting the application process. These documents include :-

Approval for Expression of Interest and Detailed Feasibility Study.
Approval of Power Purchasing Agreement
Electricity Generation License

Step 2

Any person intending to engage in the business of transmission, Distribution or generation of electricity in the republic of Uganda shall make a written application to the Ministry of Energy and Mineral Development requesting for a license through the Electricity Regulatory Authority.
The licensing Authority may stipulate such conditions as the licensee may think fit to Cary out a feasibility study to check the market and industry condition and ascertain if they can meet the industry requirements.
Then Fill the form and return the same to the same commission head office. It is important to give information that will satisfy the Authority that the applicant can meet the relevant license condition and has the technical and financial capability to comply with the terms and conditions of the license.

Step 3
Before an application is accepted it must fulfill certain requirements specified by the Electricity Regulatory Authority and this must be attached on the application form.

The next step for the applicant is to attach the necessary documents on the application form and on this stage they need to furnish the Electricity Regulatory Authority with sufficient information to enable the commission to make a full assessment of the suitability of the Applicant to hold the License.

The following information is required.

The legal and financial status of the applicant;
ERA Gantt chart and example
ERA CV template
ERA Project reference template
Declaration of intent from partners
Feasibility study templates
Business plan template
Environmental and Social Impact Assessment template
Resettlement Action Plan template
Stakeholder Engagement Plan template
Project Financial Model template
A technical and economic description of the project;
Description of how the projects fit 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 projects adaptation to the landscape,including necessary maps and drawings;
The impact of the project on public interest and possible mitigation;
The results and reports of assessments, including environmental impact assessments, and any other studies carried out; the potential impacts of the project on private interests , including the interests of affected landowners and other rights holders; and all relevant consents and permits required under any other law.

Step 4

Therefore, a draft application must be sent to Electricity Regulatory Authority for a preliminary scrutiny.
If Electricity Regulatory Authority finds the content of the draft sufficient to start the licensing procedures, the applicant must send a final application to Electricity Regulatory Authority, and another copy to Ministry of Energy and Mineral Development accompanied by such fee as may be prescribed under sub section of Power Act. Any person intending to apply for licence to transmit Distribute or generate shall duly comply with the conditions and requirements laid down by the Electricity Regulatory Authority of Uganda.

Step 5

Then submit the completed application form along with the relevant documents and the processing fees to the commission. indicating clearly that the primary business is the supply of electrical energy for sale Provided that where-:
- the rated capacity of the generating plant does not exceed 25 kilowatts in the case of a public or local authority and 100 kilowatts in the case of a company, person or body of persons and the pressure in any part of the system connected thereto does not exceed medium pressure; and
- no part of such system is outside the close or curtilage of the premises in which the electrical energy is generated.

Step 6

When the Authority receives the Application ,it will crosscheck to see if all the required documents are included on the application form then it will inform the applicant that all the requirement are meant and it will note thereon the date of its recipient and will send to the applicant the acknowledgment stating the date of receipt.

Step 7

In Case the application has some missing documents, the Authority may upon review of the application require the applicant to furnish the missing documents within the specified time limit/period which will be communicated by the Authority this time period usually does not exceed 30 days.
No public or local authority within the area of supply of an authorized distributor may, after having been offered a supply of electrical energy by such authorized distributor, use any form of energy for power or lighting purposes (excepting portable power and portable lighting purposes) other than electrical energy without the approval of the Minister, which approval shall not be refused in any case in which the Minister is satisfied that the public or local authority concerned will be unduly prejudiced by such refusal.

Step 8

The applicant is required to publish notice and furnish the Authority with the copy of each notice. Within six months after the receipt of such application and after such inquiry as he thinks necessary, the Minister may grant the application on such terms and conditions and for such period as he thinks fit, or may refuse the application :

Step 9

The applicant has to give a notice of application to the Local Government, to ERA and publish the intention of the project in a newspaper at least 15 days prior to submission of the application.

Step 10

The Authority will then consider the information in the application and the responses in the published notice and decides whether to grant the applicant a license if everything is in order.
A bulk supply licence may be for any period not exceeding fifty years, and the bulk supply licensee may, within ten years of the date named in a bulk supply licence for its termination, make application to the Minister for a renewal of the bulk supply licence.

Step 11

The Authority then grants the license to the applicant upon payment of the license fee to the Authority by the applicant.
The applicant will be responsible for the erection and installation of all the electric supply lines and works necessary for the supply of the electrical energy in terms of the demand or of the authority of the Minister, as the case may be.

Required DocumentsEdit

Application Letter to Electricity regulatory Authority
Copy of newspaper advertisement
Copy of notice to local/county government
Draft or signed PPA
Environmental Impact Assessment license
Environmental Audit Report
Information according to the Feed in Tariff Policy
Certificate of registration
Certificate of incorporation
Memorandum and/or Articles of Association (If applicable)
Copies of most recent audited report
Statement giving particulars of financial projections, sources of finance and capital proposed to be expected.
List and Particulars of Directors.
List and Particulars of Shareholders

Office Locations & ContactsEdit

Ministry of Energy and Mineral Development - Head Office,
Physical address: Amber House, Plot 29/33, Kampala Road
Kampala, Uganda
Phone: 041 4344414
Email: [email protected]
Website:Link

Electricity Regulatory Authority - Head Office
New ERA House, Plot 5C-1 Third Street,
Lugogo Industrial Area
P.O.Box 10332,
Kampala, Uganda
Tel: +256 417 101800, +256 393-260166
Complaints Hotline: +256 200 506000
Email: [email protected]
Website: Link

EligibilityEdit

Incorporated companies are eligible to make the application.
All Individuals or companies interested in Transmitting Power, Distribution and generating power and other related products are eligible provided they have registered with the (ERA)Energy regulatory Authority.
The Minister may authorize any public or local authority, company, person or body of persons, whether within any such area of supply or not, to generate or, subject to the provisions of the Electric Supply Lines Act.

FeesEdit

UGshs. 500,000 application fees
Clearance Fee: Grant of license or permit to generate, distribute and supply electricity within a specified area UGshs. 800,000 per MW of installed capacity

ValidityEdit

The validity period is one year.

Documents to UseEdit

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Sample DocumentsEdit

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Processing TimeEdit

The processing time is 90 days.

InstructionsEdit

Energy generating, transmitting or distributing projects including those under the FiT with a capacity above 3 MW must obtain an Electricity Generation License from the Energy Regulatory Authority (ERA).
Projects with a capacity under 1 MW do not need an ERA clearance and those between 1 MW and 3 MW must obtain an Electricity Permit from ERA, which is a streamlined license.
The license is open-ended and must not be renewed.
The applicant has to give a notice of application to the Local Government, to ERA and publish the intention of the project in a newspaper at least 15 days prior to submission of the application.

Steps

Application Notice to ERA.
Advertisement of intention in a local daily newspaper
Notice to local/county government
Payment of application fee
Acknowledgement of application by ERA
ERA Decides On Application
Payment of license grant fee
Issuance of license

Required InformationEdit

Name and address of applicant in full.
Nature of license applied ( NEW , renewal, transfer or modification)
If applicant is a corporate body ( jurisdiction of incorporation, registration number, name of directors)
Capacity envisioned to be generated.
Name, Address and Telephone of the Chief Executive officer.
A statement listing the names of holding companies, associated companies or partnerships in which the applicant has interest.
Names and address of two business referees.

Need for the DocumentEdit

Any person interested in engaging in the business of electricity generation,transmission,system operation,and distribution or trading is required to obtain an operator's license from the Electricity regulatory Authority.
The purpose for this document is to balance the interest of market participants and the protection of Ugandan consumer interest with respect to price,quality and consistency of power supply.

Information which might helpEdit

The Electricity Act 1999 and further detailed out in the 10-year Strategic Plan. The functions of the ERA as laid out in the Act are:

To issue licenses for;
- The generation, transmission, distribution or sales of electricity; and
- The ownership or operation of transmission systems;
To receive and process applications for licenses;
To prescribe conditions and terms of licenses issued under this Act;
To modify licenses issued under this Act;
To make and enforce directions to ensure compliance with licenses issued under this Act;
To establish a tariff structure and to investigate tariff charges, whether or not a specific compliant 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 organization of generation, transmission and distribution companies or other legal entities engaged in the generation, transmission and distribution of electricity to the extent that that organization 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 encourage the development of uniform electricity industry standards and codes of conduct;
To establish a uniform system of accounts for licensees;
To advise the Minister regarding the need for electricity sector projects;
To prepare industry reports and to gather information from generation, transmission and distribution companies;
To prescribe and collect license fees;
To provide for the procedure for investment programmes by transmission and distribution companies;
To approve standards for the quality of electricity supply services provided;
To approve codes of conduct in respect of the operation of transmission and distribution systems;
To acquire information and carry out investigations relating to any of its functions; and
To perform any other function that is incidental or consequential to its functions under this section, or as may be conferred on it by any other law.

External LinksEdit

OthersEdit

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