Electricity Act, 1999

The Minister must appoint by statutory instrument the day(s) on which the Act (or parts of it) come into force.

The object is to regulate the generation, transmission, distribution, sale, export, import and distribution of electrical energy in Uganda.

Provides definitions of terms used in the Act (for example: "transmission facilities", "apparatus", "distribution", "consumer", "minimum transmission voltage", "authority", and others).

The authority has functions including issuing and modifying licences; prescribing licence terms; making and enforcing directions; establishing and investigating tariffs; approving rates and quality standards; reviewing and enforcing organisation and performance standards; setting accounts, fees and codes; gathering information and advising the Minister; approving investment procedures; acquiring information and investigating; and performing incidental or conferred functions.

The authority must perform its functions and exercise its powers in a manner that ensures licensees comply with licence conditions, protects consumer interests, promotes efficiency, safety and competition, enables nondiscriminatory connection to transmission systems, ensures transparency and a fair balance of interests, and promotes continuity of supply.

The First Schedule to the Act applies to meetings of the authority and related matters.

The authority may appoint one or more special committees to inquire, advise, and exercise delegated powers; a special committee must have a chairperson and other persons; subject to directions, a special committee may regulate its own procedure.

The authority may co-opt a person to assist on any matter if satisfied of their qualifications; a co-opted person may participate in proceedings on that matter but may not vote or participate in other authority proceedings.

The Authority may delegate most of its powers, duties or functions to specified persons or committees; for undertakings not exceeding two megawatts it may delegate certain licensing, tariff and regulatory powers to any competent person including local government; those exercising delegated powers must comply with directions and may be appealed against to the Authority; delegation terms are set in an instrument of delegation.

The authority must act independently in performing its functions, subject to government policy and other Act provisions, and must not be subject to direction or control by any person or authority.

The Minister may give written directions to the authority about policy (from time to time) provided those directions do not adversely affect the authority's functions; the Minister must publish a copy of any such direction in the Gazette.

Establishes the Electricity Regulatory Authority as a body corporate and grants it powers to own property, sue and be sued, and perform other lawful acts.

The authority is composed of five appointed members; the Minister appoints them with Cabinet approval and designates a chair; the chief executive officer is an ex officio member without a vote.

Persons meeting specified disqualifying criteria (e.g. industry affiliations, bankruptcy, certain convictions, or holding certain public offices) shall not be appointed to the Authority.

A member of the authority serves a five-year term, may be reappointed, but cannot be appointed for more than two terms.

The Minister must remove an authority member for specified grounds; members may resign with 60 days' written notice; the Minister must notify and allow explanation before removal; the Minister may appoint a qualified replacement; a removed person is not entitled to benefits under section 9.

Members of the authority shall be paid subsistence or other allowances specified by the Minister with Cabinet approval in the instrument of appointment.

The authority must have a secretariat with a chief executive officer and other staff; the authority must have a secretary appointed on terms in the instrument of appointment; the secretary must perform specified duties and is responsible to the chief executive officer.

The authority must appoint a chief executive officer from qualified persons; the CEO holds office for five years and may be reappointed once; the authority may terminate the CEO for specified grounds.

The chief executive officer must, subject to the Act and the authority's policy directions, manage the authority day-to-day, implement its policy decisions, and control its staff.

The authority may appoint other secretariat staff on terms in their instruments of appointment, and the authority must (with Ministerial approval) make regulations governing staff employment terms.

Lists the sources that make up the authority's funds, including money from Parliament, prescribed fees, a levy not exceeding 0.3 percent on revenue from generated electric energy, borrowed money, and grants or donations acceptable to the Minister and the Minister responsible for finance.

The chief executive officer must prepare and submit yearly income and expenditure estimates to the authority at least two months before the financial year; the CEO may submit supplementary estimates before year-end; the authority must submit approved estimates to the Minister, who may approve them; the authority must not exceed its budget without Ministerial approval.

The authority must open and maintain necessary bank accounts, bank money received promptly, and ensure no withdrawals or payments are made without its authority.

The authority may borrow money from any source, subject to Ministerial consultation and Parliament approval.

The funds of the authority may be applied and, subject to subsection (1), may be invested in fixed deposits with an approved bank, in treasury bills and Government securities, or in other manners approved after consultation with Ministers, but not in any business licensed under this Act; the authority must also set aside amounts for capital expenditure and operations, make provision for bad and doubtful debts and for depreciation, and consider other contingencies.

The authority's financial year is the twelve months from 1st July to 30th June of the following year.

The authority must keep proper accounts and records; within four months after each financial year it must prepare and submit audited accounts in a Minister-approved form; the Auditor General (or an auditor he appoints) may inspect records and must audit and deliver audited accounts within two months of receipt; the Minister must lay the Auditor General's report before Parliament as soon as possible.

Every licensee must prepare and submit, at the end of each financial year, to the authority a report on its operations, services and compliance with licence conditions.

Sets appointment, identification, inspection powers of inspectors and duties of inspectors and of owners/persons in charge of premises.

The authority may investigate licensees or system operators for breaches of fair competition; complaints must be lodged to the authority, the authority shall investigate if a breach appears and may remedy it, and licensees found in breach must pay compensation as determined by the authority.

If a person intends to establish a project that requires a licence under this Act, that person must notify the authority of the intended project.

The authority must publish a received notice in the Gazette and at least one national newspaper within thirty days, include a summary and inform where it can be inspected, and invite comments for not less than thirty days after publication.

The authority may issue a permit in the prescribed form to the intended applicant within thirty days after receipt of comments; that permit allows the intended applicant to carry out studies and other necessary activities to prepare a licence application.

The authority must invite applications for any licence under this Act through a fair, open and competitive process following procedures prescribed by the authority by regulations or other law.

Applications for a licence must include prescribed content; the authority must confirm completeness within thirty days, may require security (bond) arrangements, and shall require applicants to take necessary insurance. Applications must be accompanied by the applicant's evaluation of comments under section 30.

The authority must process all licence applications promptly and in any event within one hundred and eighty days after it receives the application.

The authority must, within 45 days of receiving an application, publish a notice in the Gazette and a national newspaper that states receipt, describes the project, allows inspection (subject to commercial confidentiality), and invites affected parties to object within at least 30 days.

An affected party may lodge with the authority an objection to the grant of a licence.

The authority must consider a listed set of factors when granting or rejecting a licence, including energy needs, environmental protection, community impact, costs, applicant capacity, energy efficiency, representations and objections, public and private interests, and the price or tariff offered; when granting a licence the authority must also consider government policy and any other matters it deems relevant.

If the authority refuses to grant a licence it must give the applicant a statement of reasons within thirty days after the refusal.

A licence-holder who has fulfilled all obligations under their licence may apply for and obtain any other licence under this Act.

If the authority believes a licensee is breaching a licence condition or statutory requirement, the authority may direct the licensee to comply with that condition or requirement.

If, after consulting the licensee and a directly affected party, the authority is satisfied that a licensee is (or is likely to be) contravening licence conditions or requirements and immediate action is necessary (to protect health, safety, the environment, or to prevent dissipation of assets), and the licensee does not act under subsection (1), the authority may take action on the licensee's behalf at the licensee's cost.

The authority may revoke a licence for breaches of licence terms or the Act; it must give the licensee 45 days' notice published in the Gazette and newspapers to show cause; the licence-holder may appeal to the tribunal within 30 days; the authority must ensure service to consumers is not unduly interrupted on revocation.

The authority must notify the licensee before modifying a licence, consider representations, effect modifications by notice and publication, and may modify terms if public interest benefits outweigh licensee disadvantages; the licensee may appeal within twenty-eight days.

Licensees may apply in writing to the authority to modify a licence if a condition has become unduly onerous; the authority must review and communicate within thirty days, may approve/modify/request information/reject, and must publish notice and invite public representations when approving; the licensee may appeal to the tribunal.

Licences may run up to a maximum of forty years; a licensee may apply for renewal within three years before expiry; the authority may renew licences on terms and payment of the prescribed fee; the section excludes small hydropower licences.

Transfers of licences require the authority's written consent; licensees may apply for transfers, must submit the transferee's application and pay a prescribed fee on approval; the authority must satisfy itself about the transferee and must not unreasonably withhold consent; licensees may appeal refusals within thirty days.

A licensee under this Act must carry out their activities in accordance with their licence, this Act and the Regulations made under it.

Licensees must keep records and prepare reports; the authority must make regulations about contents; licensees must provide requested operational information at their cost; licensees must keep financial records as required; the authority must require separate financial records where multiple operations exist.

When the licence expires, the licensee must remove, at their own expense and to the authority's satisfaction, any installations the authority considers inappropriate for further operations.

A licensee must notify the authority of any accident in its works or transmission lines, including any loss of life or serious injury.

No person shall construct, own or operate a generating station of or exceeding 0.5 megawatts without a generation licence; the authority must register for commercial generating stations of capacity not exceeding 0.5 megawatts subject to payment of the prescribed fee.

On expiry of a licence for a hydropower plant over ten megawatts, the plant shall be transferred to the Government without compensation, subject to an ownership exception.

No person may construct, own or operate a transmission installation without a transmission licence granted by the authority.

Holders of transmission licences must provide access to the transmission network to all existing and potential users on payment of fees; licensees must also provide information to the authority to enable approval of those fees.

The authority must designate a transmission-licensed person as system operator and license that person with specified functions; the system operator must not show undue preference; the system operator may recover reasonable costs; all licensees must comply with system operator decisions.

The authority must designate a bulk supplier responsible for transmission and the bulk sale of electricity to distribution and sales companies.

It is prohibited for any person to distribute electricity without a distribution licence granted by the authority; the authority may delegate licensing of small distribution systems to local government and may withdraw that delegation if the bulk supplier fails to exercise functions in accordance with the authorisation.

Holders of distribution licences must provide access to all existing and potential users on payment of fees approved by the authority; licensees must give the authority prescribed information; consumers may apply to the authority for permission to connect when a licence holder cannot allow access; the authority may order connections and transfer of ownership of supply lines and prescribe terms including cost recovery.

The authority may delegate to a competent person (including a local government) the power to issue licences to sell electricity provided the licensee's annual sales are less than 4 gegawatt hours, and the authority may withdraw that delegation if the delegate does not exercise functions in accordance with the authorisation.

No person must import or export electricity without an export or import licence granted by the authority.

A person must not generate, transmit, distribute, sell, export or import electricity (as listed) without a licence.

The Government must undertake to promote, support and provide rural electrification programmes through public and private sector participation to expand access and realise social, economic and environmental benefits.

The Minister must prepare a sustainable, coordinated rural electrification strategy and plan for Uganda for Cabinet approval; submit an annual report to Parliament once a year containing specified information about grid expansion, mini-grids, renewable generation and solar PV for isolated settlements; periodically evaluate the programme; and may amend the strategy with Cabinet approval.

The Minister must establish and manage the Rural Electrification Fund, determine eligibility and subsidy level, and may accept donations and other acceptable funds.

The Minister must determine the criteria and level of subsidy, taking into account a listed set of factors relating to rural electrification, fund resources, community priorities, commitments, viability after subsidy and renewable energy use.

The Minister must maintain a national rural electrification database.

Licensees authorised by the authority may place and maintain electric supply lines and exercise related powers, subject to owner consent, notice requirements and compensation obligations.

A licensee intending to enter land under the Uganda Land Commission or a district land board must give thirty days’ notice; the boards may permit entry within thirty days and may impose conditions; the licensee may apply to the authority if terms are unacceptable and the authority may inquire, decide and authorise; an aggrieved person may appeal within thirty days.

The authority may order a licensee to alter or remove an electric supply line (on application and on evidence); the owner must bear removal or alteration costs; the authority may order route changes or prohibit construction; an aggrieved person may appeal to the tribunal within thirty days.

Claims for compensation must be lodged with the authority within one year of the operator's act; the authority may extend that time on application showing sufficient reasons; an aggrieved person may appeal to the tribunal within thirty days.

A licensee may ask the Minister to acquire land (beyond a mere right of use) with the authority's approval; the authority must not unreasonably withhold approval and must give copies of approval to the Minister and the landowner; if the Minister is satisfied the land is needed for public electricity services and in the public interest, the Minister shall acquire the land on behalf of the licensee, and the licensee must bear all costs.

Licensees must not show undue preference or discrimination when fixing tariffs and terms of supply; the authority prescribes principles, approves methodologies, may set different tariffs for classes of consumers, and handles royalty determination and prescription of approval procedures.

Consumers must comply with safety regulations made by the authority.

Licensees must supply electricity and necessary plant when required by an owner or occupier; persons requesting supply must give a written notice specifying premises, start day, maximum power and minimum period; consumers may appeal to the authority when a required supply is not given; licensees may interrupt supply for necessary works but must give 24 hours' notice except in emergencies; consumers are entitled to compensation for negligence and must lodge written claims within six months.

If the licensee provides a supply line or electrical equipment or plant to a consumer, the licensee may require the consumer to pay access fees and other service charges approved by the authority, having regard to the circumstances.

Licensees are not required to supply electricity to premises in specified circumstances; a person refused supply may complain to the authority which must take action it deems necessary.

A licensee may require a person seeking electricity under section 77 to provide reasonable security for monies payable, and may refuse supply or equipment until that security is given if the person fails to provide it.

Section lists offences by 'any person' relating to tampering with installations or meters, affixing advertisements without consent, negligent acts causing injury or damage, damaging meters, abstracting or altering meter records, and contraventions of section 61; each offence carries specified fines and in some cases imprisonment.

A licensee who, without the authority's express permission, supplies electricity or installs supply lines or electrical works outside their licensed distribution area commits an offence and faces a fine up to one hundred currency points.

A licensee must comply with the terms of their licence; failing to do so (without lawful excuse) is an offence punishable by a fine up to 100 currency points and a further fine up to 10 currency points for each day the offence continues after conviction.

A person who fails or neglects to register any installation under section 51 (2) commits an offence and is liable on conviction to fines: up to ten currency points and a further fine of up to one currency point for each day or part of a day the offence continues after conviction.

It is an offence for a person who, negligently and without lawful authority, to extinguish, damage or deface public lamps or their supports; on conviction the person may be fined up to five currency points or imprisoned up to one year or both.

Any person who willfully or negligently diverts or wastes energy, or damages supply lines or related equipment, commits an offence and is liable on conviction to a fine not exceeding thirty currency points or to imprisonment for a term not exceeding three years or to both.

Persons must not undertake work or activities near electrical installations without lawful permission; doing so is an offence punishable by a fine not exceeding twenty currency points or imprisonment up to two years or both.

No person must install electrical wiring or extensions on any premises without first obtaining an installation permit issued by the authority.

If a person is convicted of an offence under this Act for which no penalty is provided, they are liable to a fine up to ten currency points, and if the offence continues, a further fine up to one currency point for each day or part-day it continues after conviction.

Anyone who removes, destroys or damages installations or related instruments (even unintentionally) must pay full compensation for the damage, and that compensation can be recovered by civil action.

Knowingly providing false or incorrect information to the authority is an offence; conviction may lead to a fine not exceeding ten currency points or imprisonment for a term not exceeding one year, or both.

A person convicted of an offence may be held liable for loss or damage and the court may order them to pay compensation; such an order may be enforced like a civil judgment.

A person appointed a member of the tribunal must, before assuming duties, take and subscribe the Oath of Allegiance and the Judicial Oath in the Fourth Schedule to the Constitution.

The Minister may remove a tribunal member in consultation with the Judicial Service Commission; members may resign by written notice to the Minister; the section lists specific grounds for removal including infirmity, misconduct, incompetence, bankruptcy, failure to disclose interests, or conviction with six months' imprisonment or more.

Members of the tribunal must disclose any interest that could conflict with their functions to the parties and must not take part in the proceeding or exercise powers in relation to that matter.

The tribunal must have a seal, and the seal must be affixed to documents as directed by the chairperson.

The chairperson must give directions about arranging the tribunal's business, where it may sit, and its procedure; is responsible for orderly and expeditious discharge of business; and determines times and places of hearings.

The chairperson must preside at all sittings of the tribunal; if the chairperson is absent, the vice chairperson must preside.

Persons giving technical advice must stop advising the tribunal if they are disqualified, fail to disclose relevant interests, or later acquire an interest in the electricity sector.

A member of the tribunal or a person giving technical advice shall be paid an allowance; the allowance may be determined by the Minister.

The tribunal's funds consist of monies appropriated by Parliament and grants or donations acceptable to the Minister and the Minister responsible for finance.

The tribunal has jurisdiction to hear and determine matters referred to it relating to the electricity sector; it may not try criminal offences nor hear disputes the parties agreed to settle; it has the powers of the High Court when exercising its jurisdiction under the Act.

The tribunal may review its judgments and orders; aggrieved persons may appeal tribunal decisions to the High Court within thirty days, and may further appeal High Court decisions to the Court of Appeal within thirty days; courts or tribunals (except on appeal) must not question tribunal decisions.

The tribunal must meet when it needs to exercise its jurisdiction; it must conduct proceedings without procedural formality while observing natural justice; witnesses before the tribunal have the same immunities and privileges as before the High Court; except as prescribed, the tribunal may regulate its own procedure.

The tribunal must have a registrar (qualified like a High Court registrar and appointed by the Minister with the Judicial Service Commission); the registrar must manage day-to-day administration, keep a public record of tribunal discussions and process tribunal papers; the tribunal must have a registry and necessary staff.

The Electricity Disputes Tribunal is established.

The Minister must appoint the chairperson and vice chairperson of the tribunal, in consultation with the Judicial Service Commission.

The Minister must appoint the other members of the tribunal on the recommendation of the Public Service Commission.

A person may only be appointed as a member of a tribunal if they are of high moral character, have proven integrity, and have proven experience in at least one listed area (technical electricity knowledge, law/administration, finance/economics, the energy industry, or environment).

A member of the tribunal holds office for five years.

A member of the tribunal must hold office on the terms and conditions specified in their letter of appointment, subject to the Act.

A person must not be appointed as a tribunal member or asked to give technical advice if they meet specified disqualifying conditions.

The authority may, by statutory order, grant written exemptions from the licensing requirement for generation, distribution or sale of electricity (including by class or particular person) to promote rural electrification where generation capacity does not exceed two megawatts; such exemptions must be in writing, published when granted to a class, may be revoked according to their terms, and do not prevent the authority exercising other regulatory functions.

The Minister must, in consultation with the authority, lay down administrative procedures to regulate electricity distribution and sales to consumers for generation systems of a capacity not exceeding two megawatts.

The authority must submit an annual statement of activities to the Minister within four months after each financial year and must submit other reports the Minister requires from time to time.

The authority must have a common seal in a form it determines; the seal must not be affixed except by the authority's order; the seal must be authenticated by the CEO and two other members; certain instruments may be executed on behalf of the authority by authorised persons.

The authority must keep a register; it may exempt certain documents from public access to protect business secrets; and decisions must be in writing with reasons.

Members, committee members, officers, employees and persons acting on behalf of the authority are not personally liable for acts or omissions done in good faith and without negligence to carry the Act into effect.

The authority must, within twelve months after commencement, make regulations by statutory instrument about the electricity system; those regulations may set technical and safety standards, fees and other matters and may prescribe penalties including fines up to two hundred currency points, imprisonment up to twenty-four months, and continuing-offence daily fines up to five currency points.

The authority must make regulations, by statutory instrument, to establish a grid code.

The Minister may, by statutory instrument, amend any of the Schedules to this Act.

Before the authority starts, the Minister (with Cabinet approval) may perform the authority's functions and issue licences for electricity for up to six months; the Minister must lay the licence agreement terms before Parliament before issuing; only the Uganda Electricity Board may be issued transmission and system operation licences; the authority may renew licences on application.

Despite repeal in section 130(1), the Uganda Electricity Board must continue to operate under a licence to be issued by the Minister under section 122.

Existing licences under the Electricity Act that are in force immediately before this Act's commencement continue to have effect from commencement as if granted under this Act, and time-limited licences remain in force for the remainder of their period after commencement, subject to this Act.

The Minister must cause a successor company or companies to be incorporated under the Companies Act to take over the Uganda Electricity Board's duties, functions, property, rights and liabilities, subject to exceptions and in accordance with the Public Enterprises Reform and Divestiture Act.

The Minister may appoint a transfer date by order, and on that date all property, rights and liabilities of the Uganda Electricity Board become those of the successor company; the Board ceases to exist.

The successor company must issue securities as the Minister responsible for finance directs; the Minister may dispose of such securities, but must not direct issuance once the successor company is no longer wholly government-owned.

The successor company must, on the transfer date, accept into its employment every person employed by the Uganda Electricity Board immediately before that date who was given an option and opted to join the successor company; persons who opt must be employed on terms not less favourable than they had immediately before the transfer date.

Government must continue to pay the retirement benefits and pensions of former Uganda Electricity Board employees who were receiving them at the commencement of the Act, on terms not less favourable than before; pension certificates are conclusive evidence of an employee’s entitlements for the period of employment in the Board.

The Electricity Act is repealed; statutory instruments made under it that are in force immediately before this Act commences remain in force until specifically revoked under this Act.