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Electricity Regulatory Authority’s Cost of Service and Affordability of Tariff Study

Summary

 Client: Electricity Regulatory Authority (Uganda)

Context: Cost of Service and Affordability of Tariff Study

Partners: Ricardo Energy & Environment (UK); ICEA Consulting; Hifab Oy; MRC-Consultants and Sunshine Projects

Executor: Asigma Data

Objective

  1. The African Development Bank provided funding to the Government of Uganda for the Uganda Rural Electricity Access Project (UREAP) whose principal objective is to provide reliable and affordable electricity to rural households, public infrastructure services and small and medium scale enterprises. In order to execute this objective effectively, the Electricity Regulatory Authority  (ERA) which is responsible for these funds, aims to apply part of this funding into studying the Electricity Cost of Service and Affordability of Tariffs.
  2. In order to execute the project, ERA contracted Ricardo Energy & Environment (UK), ICEA Consulting, Hifab Oy, MRC-Consultants and Sunshine Projects/Asigma Data to study the current electricity supply system and tariff affordability in several cities throughout Uganda. Asigma Data, which is a subsidiary of ASIGMA, was the project’s data manager working with ICEA Consulting.

Approach

  1. Project Inception: Throughout the project inception phase, Asigma Data worked with other stakeholders to: define stakeholders that will be involved in the survey; define the survey area; formulate and xml encode questionnaires in the Asigma data tool.
  2. Data Collection: Data was collected from 1220 households, 69 industrials and 99 commercials in 25  districts. 
  3. Data Analysis: Data analysis of obtained results for demand forecasts and tariff modeling and sensitivity analysis. 

Outcome

  1. The  results of the survey will provide the basis for assessment of  revenue requirements and provide an understanding and estimates of the cost of each service provided.
  2. The study will inform the process of reviewing and approving tariffs and charges for each of the services providers across the electricity value chain.