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ELECTRICITY SUPPLY INDUSTRY PERFORMANCE

REPORT FOR THE YEAR 2018

Off Grid
Grid Supply Total
Supply
=976.5 MW =984.0 MW
=7.5 MW

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TABLE OF CONTENTS

ACRONYMS ....................................................................................................................... iv
LIST OF FIGURES .................................................................................................................. v
EXECUTIVE SUMMARY.................................................................................................. vii
I.Peak Demand ................................................................................................................vii
II.Installed Generation Capacity ...................................................................................vii
III.Electricity Supply to the National Grid ......................................................................vii
IV.Transmission ................................................................................................................. viii
V.Electricity Distribution .................................................................................................. viii
VI.Off-Grid Generation and Supply................................................................................ix
1.0.BACKGROUND ............................................................................................................. 1
1.1.Introduction ................................................................................................................. 1
2.0.ELECTRICITY GENERATION ....................................................................................... 1
2.1.Installed Generation Capacity ................................................................................. 1
2.1.1.Power Plants Generating Electricity in Uganda .................................................. 2
2.2.Projects Under Construction...................................................................................... 4
2.3.Energy Generated and Sold to the National Grid ................................................ 5
2.3.1.Generation from Large Hydro Power Plants ........................................................ 5
2.3.2.Generation from Small Hydro Power Plants ......................................................... 6
2.3.3.Generation from the Thermal Power Plants ........................................................ 7
2.3.4.Generation from the Solar PV Plants .................................................................... 8
2.3.5.Generation from Bagasse Power Plants............................................................... 9
2.4.Staff in the Electricity Generation Segment ......................................................... 10
3.0.ELECTRICITY TRANSMISSION SEGMENT ................................................................. 12
3.1.Introduction ............................................................................................................... 12
3.2.The Electricity Demand and Supply Nexus ........................................................... 12
3.3.UETCL Energy Purchases .......................................................................................... 14
3.4.UETCL Energy Sales ................................................................................................... 15
3.4.1.UETCL Energy Sales by ToU ................................................................................... 16
3.5.Transmission Energy Losses....................................................................................... 17
3.6.Staff in Transmission Sagement ............................................................................... 18

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3.7.Transmission Network Assets (Transmission Length, Substations) ....................... 18
4.0.ELECTRICITY DISTRIBUTION ON THE NATIONAL GRID ........................................... 20
4.1.Introduction ............................................................................................................... 20
4.2.Energy Purchases and Sales by Distribution Utilities ............................................. 20
4.2.1.Energy Sales by Customer Categories ............................................................... 21
4.3.Energy Distribution Losses ........................................................................................ 22
4.3.Energy Losses for UMEME Limited ........................................................................... 23
4.3.2.Energy Losses for Mini-Grids .................................................................................. 24
4.4.Customer Growth ..................................................................................................... 25
4.5.Distribution Network Length .................................................................................... 26
4.6.Staff in the Distribution Segment............................................................................. 27
4.7.Transformation Capacity ......................................................................................... 27
4.8.Key Performance Benchmarks for UMEME LIMITED ............................................. 28
4.9.Key Performance Benchmarks for Mini-Grids ....................................................... 30
5.0.ELECTRICITY GENERATION AND DISTRIBUTION BY OFF-GRIDS ............................. 32
5.1.Introduction ............................................................................................................... 32
5.2.Energy Generation and Sales by the Major Off-Grids ........................................ 32
5.3.Staff, Customers and Distribution Network in Off-Grids ....................................... 34
6.0.TREND OF ESI-RELATED MACRO-ECONOMIC VARIABLES .................................... 35
6.1.Introduction ............................................................................................................... 35
6.2.Crude Oil Prices ......................................................................................................... 35
6.3.Inflation ....................................................................................................................... 36
6.4.Consumer Price Index (CPI) .................................................................................... 36
6.5.United States Producer Price Index (US PPI) ......................................................... 37
6.6.Exchange Rate.......................................................................................................... 38
7.0.RETAIL TARIFFS ............................................................................................................ 40
7.1.Grid Retail Tariff ......................................................................................................... 40
7.2.Retail Tariffs for Mini-Grid Customers ...................................................................... 41

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ACRONYMS

BEL Bujagali Energy Limited


Bn Billion
BoU Bank of Uganda
CPI Consumer Price Index
EIA Energy Information Administration
EPRC Economic Policy Research Center
ERA Electricity Regulatory Authority
ESI Electricity Supply Industry
GoU Government of Uganda
GWh Gigawatt hours
KCCL Kasese Cobalt Company Limited
KIL Kilembe Investments Limited
KRECS Kyegegwa Rural Electricity Cooperative Society
Kwh Kilowatt hours
kV Kilovolt
Ltd Limited
Mn Million
MoFPED Ministry of Finance, Planning and Economic Development
OPEC Organization of the Petroleum Exporting Countries
PACMECS Pader Abim Community Multi-purpose Electric Cooperative Society
PPI Producer Price Inflation
PV Photovoltaic
RETF Rural Electrification Trust Fund
SAIL Sugar and Allied Industries Limited
UBOS Uganda Bureau of Statistics
UEDCL Uganda Electricity Distribution Company Limited

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UEGCL Uganda Electricity Generation Company Limited
UETCL Uganda Electricity Transmission Company Limited
UGX Uganda Shilling
US United States
USD United States Dollar
WENRECO West Nile Rural Electrification Company

LIST OF TABLES

Table Description Page Number


Table 1 Uganda's Electricity generation plants as of December 2018 3
Table 2 Licensed power generation plants under construction as at the end of 4
December 2018
Table 3 Growth in energy purchases and sales of distribution utilities 21
Table 4 Total Customers on the network as at the end of December 2018 26
Table 5 Key Performance Indicators for UMEME 29
Table 6 Key Performance Indicators for Minigrids in 2018 31
Table 7 Staff, customers and Network in off-grids 34
Table 8 Tariffs for the customers served by mini-grids 41

LIST OF FIGURES
Figure Description Page Number
Figure 1 Installed capacity by technology as at the end of December 2018 2
Figure 2 Distribution of Energy generated over years by utilities on national grid 5
by technology (GWh
Figure 3 Energy dispatched by large hydro plants in GWh (2014-2018) 6
Figure 4 Annual generation from small hydro power plants (2015-2018)7 7
Figure 5 Distribution of energy generation from thermal power plants (2014- 8
2018)
Figure 6 Energy dispatch from the solar PV plants on the national grid 8
Figure 7 Generation from bagasse power plants 9
Figure 8 Number of staff in electricity generation segment as at 31st 10
December 2018
Figure 9 Monthly System Peak Demand January 2017 to October 2018 11
Figure 10 Peak electricity demand versus installed generation capacity (MW) 12
Figure 11 Distribution of energy purchased by UETCL (GWh) by technology 13
source
Figure 12 Percentage increase in energy purchases in 2018 as compared to 14

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2017
Figure 13 UETCL energy sales (2014-2018) in GWh 14
Figure 14 Distribution of Energy sold by UETCL during 2018 (GWh) 15
Figure 15 Distribution of UETCL Energy sales by ToU over the years 16
Figure 16 Distribution of UETCL Transmission Losses 18
Figure 17 Employee growth in the transmission segment 17
Figure 18 Transmission Line growth (Kms) 17
Figure 19 Energy sales of distribution by customer categories 20
Figure 20 Distribution Losses (%) 21
Figure 21 UMEME Limited’s Distribution Energy losses 22
Figure 22 Distribution Energy losses in 2018 by service territory 23
Figure 23 Total Customers on the network as at the end of December 2018 23
Figure 24 The Distribution Network Length (In KMS) 24
Figure 25 Employees in the Electricity Distribution Segment 25
Figure 26 Transformation capacity over the years 26
Figure 27 Energy sold by off grids January to September 2018 (in GWh) 29
Figure 28 Distribution of energy sales by customer category 30
Figure 29 OPEC Prices of crude oil on international markets for the period 32
January 2017 to November 2018 (US$/b)
Figure 30 Monthly Consumer Price Index (CPI) 33
Figure 31 Monthly movements in the USPPI 34
Figure 32 Exchange Rate Uganda Shilling against US Dollar Movement for 35
November 2016 to November 2018
Figure 33 Quarterly retail Tariffs of customers on the main grid by customer 36
category over the Tariff period 2017 - 2018

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EXECUTIVE SUMMARY

In 2018, the Electricity Supply Industry continued to register growth, as


measured by the various Key Parameters highlighted below.
I. Peak Demand

The Peak System Demand (including exports to Kenya and Tanzania)


during the year 2018 was registered at 644.79 MW (in August 2018),
signifying a 3% increment, compared to the 625.27 MW registered as
the highest in 2017 (November 2017). This growth was mainly attributed
to growth in Domestic Demand.

II. Installed Generation capacity

The total Installed Capacity was 984 MW, having increased from 932
MW as at the end of December 2017. About 7.5 MW of the Installed
Capacity was accounted for by Off-Grids that generated and sold
their own electricity.

The Power Plants that attained their Commercial Operation Date in


2018 included five (5) Small Hydropower Plants and one (1) Solar
PhotoVoltaic (PV) Plant. These are:

(a) Nyamwamba HPP (9.2 MW);


(b) Lubilia HPP (5.4 MW);
(c) Nkusi HPP (9.6 MW)
(d) Mahoma HPP (2.7 MW;
(e) Waki HPP (4.8 MW); and,
(f) Kabulasoke Solar Power Plant (20 MW).

III. Electricity Supply to the National Grid

Twenty-four (24) Power Plants supplied electricity to the National Grid in


2018. These included three (3) Large Hydropower Plants, 14 Small
Hydropower Plants, three (3) Bagasse Power Plants, two (2) Thermal
Power Plants and three (3) Solar PhotoVoltaic Plants.

Overall, the Power Plants generated 4084.5 GWh in 2018, signifying a


6% increment compared to the 3,856.2 GWh generated during 2017. By

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technology, 3638.1 GWh (89%) was from Hydro (Large Hydro and Small
Hydropower Plants) with the other technologies contributing 446.4 GWh
(11%).

IV. Transmission

UETCL purchased 4,078.5 GWh compared to 3,867.1 GWh purchased in


2017, signifying a 5% increment.

By source, about 3,157.5 GWh (77%) of UETCL’s energy purchases were


from the Large Hydropower Plants; 444.4 GWh (11%) from the Mini-
Hydropower Plants; 206.5 GWh (5%) from Bagasse Co-generation; 198.9
GWh (5%) from Thermal Plants; 32.3 GWh (1%) from Solar PV and 39.0
GWh (1%) imported from the neighbouring countries of Rwanda and
Kenya.

UETCL sells its power to both local distribution utilities and neighbouring
countries (Tanzania, Rwanda and Democratic Republic of Congo).
UETCL sold 3,925.4 GWh in 2018 compared to 3,715.9 GWh sold in 2017,
signifying a 6% increment.

UETCL made most of the energy sales (92%) to Umeme Limited, while
the sales to other distribution utilities and exports constituted about 2%
and 6% respectively. Transmission losses in 2018 were 3.8%.

The total Transmission Network Length as at the end of 2018 was 2,569.8
Kms (220KV = 1,008 Kms; 132KV = 1,526 Kms, 66KV = 35.2 Kms). The
Transmission Line Length increased by 942.9 Kms (58%) compared to
1,626.9 Kms as at the end of 2017 (220KV = 150 Kms; 132KV = 1,441.7
Kms, 66KV = 35.2 Kms) following the construction of the Buseruka
Substation and the Nkenda – Fort Portal - Hoima 220 KV Power Line.
V. Electricity Distribution

The utilities that wheel power over the National Grid purchased 3,685.2
GWh from UETCL during 2018, compared to 3,390.5 GWh in 2017,
signifying a 9% increment. UMEME purchased about 3,601 GWh (98%)
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of the energy sold by UETCL, while the other Distribution Utilities
purchased 84 GWh (2%).

The energy purchased by Umeme Limited increased by about 8%, from


3,335.7 GWh in 2017 to 3,601.1 GWh in 2018, while the purchases by the
Mini-Grids increased from 54.7 GWh in 2017 to 84.1 GWh in 2018.

The energy sales of the Distribution Utilities increased by 9% in 2018


(3,065.2 GWh), compared to 2017 (2,802.5 GWh). The growth in energy
sales by the Distribution Utilities was majorly attributed to increment in
demand, especially from the Industrial Customers during 2018.

Across all Utilities, about 66% of the Energy Sales were made to
Industrial Customers (Medium Industrial = 16%, Large Industrial = 26%,
Extra Large Industrial = 24%) with sales to Domestic and Commercial
Customers constituting about 22% and 13%, respectively.

The Distribution Utilities recorded a Distribution Loss of 16.8% for 2018,


signifying a 0.5% improvement from 17.3% recorded in 2017. Umeme
Limited, the largest Distribution Utility reduced its Distribution Losses to
16.4% in 2018, from 17.2% in 2017; although this was below the target of
14.7% set by the Authority for 2018.

As at the end of 2018, there were 1,352,735 Customers on the National


Grid, signifying an increment of 15%, from the 1,177,812 Customers as at
the end of 2017. About 93% of the Customers on the Network were
served by Umeme Limited and 7% by Mini Grids.

VI. Off-Grid Generation and Supply

Off-Grid Power Plants are not connected to the National Grid, thus they
do not sell energy to UETCL. They generate and sell their energy directly
to Customers.

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WENRECO, the leading Off-Grid, generated and sold about 16.5 GWh
to end users in 2018, whereas Kalangala Infrastructure Services Limited
generated and sold about 1.4 GWh.

The main Off-Grids (WENRECO and KIS) had 19,431 Customers


(Domestic = 12,697; Commercial = 6,958 and Industrial = 13). The
distribution of Energy Sales by Customer Category shows that 56% of
the energy sold by the Off-Grids was to Commercial Customers, 25% to
Domestic Customers and 18% to Industrial Customers.

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1.0 BACKGROUND

1.1 Introduction

The Electricity Supply Industry (ESI) Performance Report presents a


description on how the Industry performed during 2018. The Report
presents the performance on the various segments across the
Electricity Supply Chain, including Electricity Generation, Transmission,
Supply, Import, Export and Distribution.

This Performance Report indicates the performance of the ESI for the
period January to December 2018. The information presented is majorly
extracted from the submissions of the Licensees.

2.0 ELECTRICITY GENERATION

2.1 Installed Generation Capacity

The Installed Generation Capacity presented in Figure 1 is the capacity


as at the end of December 2018. This includes both On-Grid and Off-
Grid Installation Capacity. The total Installed Capacity was 9841 MW,
having increased from 932 MW as at the end of December 2017. The
planned commissioning of the 183 Isimba Hydro Power Plant at the end
of March 2019 shall increase the total Installed Capacity to 1,167 MW
by the end of the First Quarter of 2019.

The Plants commissioned in 2018 with a total Installed Capacity of 51.7


MW include; Nyamwamba HPP (9.2 MW), Lubilia (5.4 MW), Nkusi (9.6
MW), Mahoma HPP (2.7 MW), Waki HPP (4.8 MW) and Xsabo Solar
Power Plant (20 MW).

By Technological Mix, Figure 1 shows that 744.3 MW (76%) of the total


Installed Capacity is Hydro, 101.6 MW (10%) Thermal, 96.2 MW (10%)
Bagasse/Cogeneration and 40.8 MW (4%) Solar PV with the remaining
Technologies including Diesel and Biomass constituting about 1 MW.

1
Note: This does not include Emerging Power Solar PV (10MW) and Isimba (183MW) and which attained the
Commercial Dates of Operations in February 2019 and March 2019 respectively

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Of the total Installed Capacity, 7.5MW is for Off-Grid generation. The list
of licensed Power Plants in Uganda is presented in Table 1.

Figure 1: Installed capacity by technology as at the end of December 2018

Grid supply Off Grid Total


=976.5 MW supply =984.0MW
=7.5MW

Figure 2: Grid and Off-Grid distribution of Installed Generation Capacity as at the end of December 2018

2.1.1 Power Plants Generating Electricity in Uganda

Table 1 shows the list of the Licensed Power Generation Plants as at the
end of December 2018. All small Hydropower Plants (SHPPs), Thermal
Power Plants, Co-Generation Power Plants and Solar PV in Uganda are
operated by Independent Power Producers (IPPs).

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Kiira and Nalubaale HPPs are owned by Government of Uganda,
currently operated by Eskom Uganda Limited. Bujagali HPP on the
other hand was established as a Public Private Partnership (PPP) by the
Government of Uganda (GoU) and Bujagali Energy Limited (BEL). This
Power Plant is operated by BEL.

Table 1: Uganda's Electricity Generation Plants as of December 2018

No Name Category/Technology Purpose Capacity


(MW)
1 Bujagali Energy Limited Large Hydro GS 250
2 Kiira Power Station Large Hydro GS 200
3 Nalubaale Power Station Large Hydro GS 180
4 Africa EMS Mpanga Small Hydro GS 18
5 Bugoye Hydro Limited- Mubuku II Small Hydro GS 13
6 Kasese Cobalt Company Limited- Small Hydro GS 9.9
Mubuku III
7 Nkusi Small Hydro GS 9.6
8 Nyamwamba Hydro Small Hydro GS 9.2
9 Hydromax Limited – Buseruka Small Hydro GS 9
10 Eco Power Uganda Limited- Ishasha Small Hydro GS 6.66
11 Muvumbe Hydro Limited Small Hydro GS 6.5
12 Rwimi Hydro Small Hydro GS 5.5
13 Lubilia Small Hydro GS 5.4
14 Tibet Hima Mining Company – Mubuku I Small Hydro GS 5
15 Siti I Small Hydro Power Small Hydro GS 5
16 Waki HPP Small Hydro GS 4.8
17 Mahoma Hydro Small Hydro GS 2.7
18 Kakira Sugar Limited Bagasse OU&GS 51.1
19 Kinyara Sugar Limited Bagasse OU&GS 14.5
20 Sugar and Allied Industries Limited Bagasse OU&GS 11.9
21 Sugar Corporation of Uganda Limited Bagasse OU 9.5
22 Mayuge Sugar Limited Bagasse OU 9.2
23 Xsabo Solar Power Limited (Kabulasoke) Solar PV GS 20
24 Access Uganda Solar Limited Solar PV GS 10
25 Tororo Solar North Solar PV GS 10
26 Jacobsen Thermal Plant Thermal GS 50
27 Electromaxx Uganda Limited Thermal GS 50
28 Pamoja-Tiribogo Biomass OF 0.032
29 Pamoja-Ssekanyonyi Biomass OF 0.011
30 Kalangala Infrastructure Services Limited Diesel OF 1

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31 Nyagak 1 – WENRECo Hydro OF 3.5
32 Kisiizi Hydro OF 0.4
33 Bwindi Hydro OF 0.1
34 Swam Hydro OF 0.04
35 Kalangala Infrastructure Services Limited Solar OF 0.6
36 Absolute Energy - Kitobo Solar OF 0.2
37 WENRECO - Thermal Thermal OF 1.6
Total 984
KEY: GS=Grid supply; OU=Own Use; OF=Offgrid; OU&GS= Own Use and Grid Supply

2.2 Projects Under Construction

The Power Generation Plants that were licensed and under


construction as at the end of 2018 are presented in Table 2. A total of
twelve (12) Power Plants were under construction with a total licensed
Installed Capacity of 948 MW (10 MW is Solar PV and 938 MW is Hydro).

The Large Hydropower Plants; Isimba Hydro (183 MW) and Karuma
Hydro Power Plant (600 MW) are expected to be commissioned in
March and August 2019 respectively. Isimba undertook preliminary tests
in December 2018 and the energy dispatched is included in this report.
Table 2: Licensed Power Generation Plants under construction as at the end of December 2018

NO Project Technology Capacity (MW)


1 Kyambura HPP Hydro 7.6
2 Sindila HPP Hydro 5.24
3 Ndugutu HPP Hydro 5.9
4 Nyamaghasani 1 HPP Hydro 6
5 Nyamaghasani 2 HPP Hydro 15
6 Siti 2 HPP Hydro 16.5
7 Kikagati HPP Hydro 16
8 Achwa 1 HPPS Hydro 41
9 Achwa 2 HPPS Hydro 42
10 Mayuge Solar PV Power Plant Solar 10
11 Isimba HPP Hydro 183
12 Karuma HPP Hydro 600
Total 948.24

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2.3 Energy Generated and sold to the National Grid

Twenty-four (24) Power Plants supplied electricity to the National Grid in


2018 (three Large Hydro Power Plants, 14 small Hydro Power Plants, 3
Bagasse Power Plants, 2 Thermal Plants and three Solar PV Plants) – (see
Appendix 1 for energy generated per Power Plant).

Overall, the Power Plants generated 4084.5GWh in 2018, signifying a 6%


increment compared to 3,856.2 GWh generated during 2017. By
Technology, Figure 3 shows that 3638.1GWh (89%) were from Hydro
(Large Hydro and Small Hydropower Plants) with the other Technologies
contributing 446.4GWh (11%).

Figure 3: Distribution of Energy generated over years by utilities on National Grid by Technology
(GWh)

2.3.1 Generation from Large Hydro Power Plants

Uganda currently has three Large Hydropower Plants; Kiira & Nalubaale
Hydro Complex (360 MW) and Bujagali HPP (380 MW) operated by
ESKOM (U) Limited and Bujagali Energy Limited respectively.

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The Large Hydropower Plants generated 3,184.5 GWh in 2018,
constituting about 78% of the total energy dispatched during the year.
The energy dispatch from the Large Hydropower Plants in 2018 did not
significantly differ from the 3,173.0 GWh dispatched in 2017 (see
Appendix 1). BEL and Eskom (U) Limited recorded an average Plant
Factor of 75% and 46% respectively in 2018.

Figure 4: Energy dispatched by Large Hydropower Plants in GWh (2014-2018)

2.3.2 Generation from Small Hydro Power Plants

Fourteen Small Hydropower Plants generated and dispatched


electricity to the National Grid in 2018 (see Appendix 1), generating
454.5 GWh during the reporting period. Energy generated from the
Small Hydropower Plants increased by 69% in 2018 compared to 268.4
GWh generated in 2017.

The growth in generation in 2018 compared to 2017 is partly attributed


to the new plants that achieved commercial dates of operation. The
Plants are: Nyamwamba, Lubilia, Nkusi, Waki and Mahoma.

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Generation started
start 2018
in 2018
plants

Figure 5: Annual Generation from Small Hydropower Plants (2015-2018)

2.3.3 Generation from the Thermal Power Plants

Uganda has two Thermal Power Plants generating electricity to the


National Grid; Jacobsen (U) Limited and Electromaxx (U) Limited, each
with an Installed Capacity of 50 MW.

Energy generation from the Thermal Power Plants is presented in Figure


6. The Thermal Power Plants generated 207.3 GWh in 2018 compared to
242.0 GWh in 2017. The drop in generation from the Thermal Power
Plants was due to an increment in energy generated from Renewable
Energy Sources (Hydro and Solar).

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Figure 6: Distribution of Energy Generation from Thermal Power Plants (2014-2018)

2.3.4 Generation from the Solar PV Plants

Three Solar PV Power Plants generated power to the National Grid in


2018. The Plants are:

I. Tororo Solar PV (10 MW);


II. Access Solar PV in Soroti (10 MW); and,
III. Xsabo Solar in Kabulasoke (20 MW).

Xsabo Solar attained Commercial Date of Operation (COD) in the last


Quarter of 2018, a factor explaining the lower energy generation during
the year.

The Solar PV Power Plants generated 32.6GWh in 2018 compared to


23.0GWh generated in 2017, giving an increment of 42% (see Figure 7).

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Figure 7: Energy dispatch from the Solar PV Plants on the National Grid

2.3.5 Generation from Bagasse Power Plants

The Bagasse Technology uses the sugarcane waste to generate


electricity. Three (3) Bagasse Power Plants generated and sold power
to UETCL during 2018. These include:

I. Kakira Sugar Works Limited;


II. SAIL Kaliro; and
III. Kinyara Sugar Works Limited.

The Bagasse Power Plants generated 206.5 GWh, of which majority


(175.2GWh) was from Kakira Sugar Works (see Figure 8).

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Figure 8: Generation from Bagasse Power Plants

2.4 Staff in the Electricity Generation Segment

At the end of December 2018, there were 539 employees in the


Electricity Generation Segment2, signifying a 6% increment compared
to the 505 employees at the end of 2017. Increment in staff numbers
was mainly due to an increase in the number of Power Plants.

By Technology, Figure 9 shows that 242 employees (45%) were


employed in the Small Hydropower Plants, 173 employees were in the
Large Hydro Power Plants, 111 in the Thermal Power Plants and 13
employees in the Solar Power Plants.

2
This does not include Kilembe Mines Limited, Nkusi, Lubilia, Mahoma and the Bagasse power producers.

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Figure 9: Number of staff in Electricity Generation Segment as at 31st December 2018

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3.0 ELECTRICITY TRANSMISSION SEGMENT

3.1 Introduction

The Uganda Electricity Transmission Company Limited (UETCL) has


licenses for undertaking Systems Operations activities on High Voltage
Transmission Line, Bulk Power Supply and the Export and Import of
electricity to or from other countries. UETCL’s energy purchases are
driven by demand. This section presents the Peak Demand and UETCL
energy purchases and sales during the reporting period.

3.2 The Electricity Demand and Supply Nexus

A review of the system summaries captured by UETCL, shows a 3%


increase in Peak Demand in 2018 compared to 2017. The highest peak
system (including exports to Kenya and Tanzania) during 2018 was
registered as 644.79 MW (in August 2018) compared to 625.27 MW
registered as the highest in 2017 (November 2017). This growth was
mainly attributed to growth in Domestic Demand.

Figure 10 shows the Peak System Demand and Peak Domestic Demand
for the respective months in the period January 2017 to October 2018.

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Figure 10: Monthly System Peak Demand January 2017 to October 2018

The comparisons between electricity Peak Demand and the total


generation Installed Capacity (Figure 11) shows that the Peak Demand
of 2018 was below the available capacity by about 40%.

Figure 11: Peak Electricity Demand versus Installed Generation Capacity (MW)

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3.3 UETCL Energy Purchases

Figure 12 shows UETCL energy purchases. During 2018, UETCL


purchased 4,078.5 GWh compared to 3,867.1 GWh purchased in 2017,
signifying a 5% increment.

By source, Figure 12 shows that 3,157.5 GWh (77%) of UETCL’s energy


purchases in 2018 were from the Large Hydropower Plants; 444.4 GWh
(11%) from the Mini-Hydropower Plants; 206.5 GWh (5%) from Bagasse;
198.9 GWh (5%) from Thermal; 32.3 GWh (1%) from Solar PV and 39.0
GWh (1%) imported from the neighboring countries of Rwanda and
Kenya.

Figure 12: Distribution of Energy purchased by UETCL (GWh) by Technology Source

Comparisons of energy purchases of UETCL by source in 2018 (see


Figure 13) compared to 2017 show an increment in energy from Small
Hydropower Plants (68%), Bagasse (38%), solar (27%) and imports
(191%). The high percentage increase in imports in 2018 (39.0GWh)
compared to 2017 was mainly due to a drop observed in imports in
2017 (13.4 GWh) compared to the previous years.

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There was a drop in energy purchases from the Large Hydro and
Thermal Power Plants which is greatly attributed to the increase in
energy purchases from cheaper Renewable Sources including Solar
and Small Hydropower Plants.

Figure 13: Percentage increase in energy purchases in 2018 as compared to 2017

3.4 UETCL Energy Sales

UETCL sells power to both local Distribution Utilities and to neighboring


countries (Tanzania, Rwanda and DRC Congo) as presented in Figure
14. UETCL sold 3,925.4 GWh in 2018 compared to 3,715.9 GWh sold in
2017, signifying a 6% increment.

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Figure 14: UETCL energy sales (2014-2018) in GWh

UETCL made most (92%) of the energy sales in 2018 to UMEME Limited,
while the sales to other local Distribution Utilities and exports constituted
about 2% and 6%, respectively.

Figure 15: Distribution of Energy sold by UETCL during 2018 (GWh)

3.4.1 UETCL Energy Sales by ToU

UETCL charges Distributors on a Time-Of-Use (ToU) energy charge. The


Time-of-use periods are set by ERA and may be amended from time to

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time, should the Load Profile change. At present, there are three time
periods: Peak (the five hours between 18:00 and 23:00), Shoulder (the
thirteen hours between 05:00 and 18:00) and Off-Peak (the six hours
between 23:00 and 05:00).

Figure 16 shows that over the years, about half of the UETCL energy
sales are made during the shoulder time band, with the sales during
peak and off peak averaging 28% and 21% respectively.

Figure 16: Distribution of UETCL Energy Sales by ToU over the years

3.5 Transmission Energy Losses

Energy losses are computed as the difference between the energy


purchased and energy sold. UETCL’s transmission losses are presented
in Figure 17. During 2018, UETCL lost about 3.8% of the energy
purchased. Transmission losses have stagnated at averaged 3.9% over
the last three years (Figure 17).

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Figure 17: Distribution of UETCL Transmission Losses

3.6 Staff in Transmission

Figure 18 shows the growth in employees in the transmission segment


over the years. At the end of September 2018, there were 739
employees (476 contract, 263 casual) in the Electricity Transmission
Segment. This indicates a 6% increment from the total number of staff
as at the end of September 2017 (696 total, 451on contract, 245 casual
workers).

Figure 18: Employee growth in the Transmission Segment

3.7 Transmission Network Assets (Transmission Length, Substations)

Transmission Network Length:

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The total Transmission Network Length as at the end of 2018 was 2,569.8
Kms (220 kV=1,008 Kms; 132 kV=1,526 Kms, 66 kV=35.2 Kms). The
Transmission Line increased by 942.9 Kms (58%) compared to 1,626.9
Kms at the end of 2017 (220 KV=150 Kms; 132 kV=1,441.7 Kms, 66
kV=35.2 Kms) following the construction of the Buseruka Substation and
the Nkenda-Fort-Portal_Hoima 220 kilo Volt Power Line.

Figure 19: Transmission Line growth (Kms)

Substations

At the end of 2018, the Transmission Segment operated 22 Substations


compared to 18 Substations as at the end of 2017. Of the 22
Substations, three (3) (Masaka, Kawanda and Owen Falls) are
operating at 220 kV.

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4.0 ELECTRICITY DISTRIBUTION ON THE NATIONAL GRID

4.1 Introduction

This section presents the performance of the Electricity Distribution


Segment across the National Grid (not including Off-Grids that
generate and sell their own power). The Licensees on the National Grid
purchase electricity from the UETCL, the sole operator of the National
Transmission Grid.

Electricity Distribution on the National Grid is done by Six (6) Utilities,


namely: UMEME Limited, Uganda Electricity Distribution Company
Limited, Pader-Abim Community Multipurpose Electricity Cooperative
Society Limited, Kilembe Investments Limited, Kyegegwa Rural
Electricity Cooperative Society, and BECS. UMEME Limited is the largest
operator on the National Grid followed by UEDCL.

UEDCL operations are spread in eight Service Territories that include;


Central North Service Territory (CNST), Eastern Service Territory (EST),
Mid-West Service Territory (MWST), North East Service Territory (NEST),
North-North West Service Territory (NNWST), Southern Service Territory
(SST), Southern West Service Territory (SWST), North Western Service
Territory (NWST). In this Report, other than UMEME Limited, the other
Distribution Utilities are defined as Mini-Grids.

4.2 Energy Purchases and Sales by Distribution Utilities

The energy purchases and sales of the Distribution Utilities are


presented in Table 3. Overall, the Utilities that wheel power over the
National Grid purchased 3,685.2 GWh during 2018 compared to 3,390.5
GWh in 2017, signifying a 9% increment. The energy purchased by
UMEME Limited increased by about 8% from 3,335.7 GWh in 2017 to
3,601.1GWh in 2018 while the purchases of the Mini-Grids increased
from 54.7GWh in 2017 to 83.2 GWh in 2018.

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Table 3: Growth in Energy Purchases and Sales of Distribution Utilities

2014 2015 2016 2017 2018


Total Energy purchased (GWh) 2,931.2 3,099.6 3,208.9 3,390.5 3,685.2
UMEME 2,898.8 3,051.1 3,170.3 3,335.7 3,601.1
Mini-grids 32.4 48.4 38.6 54.7 84.1
Total Energy sales (GWh) 2,298.1 2,493.8 2,595.4 2,802.5 3,065.2
UMEME 2,276.5 2,457.4 2,570.2 2,762.6 3,009.1
Mini-grids 21.5 36.4 25.2 40.0 56.1

Distribution Utilities are licensed to sell power to End-users. Table 3 shows


that the energy sales of the Distribution Utilities increased by 9% in 2018
(3,065.2 GWh) compared to 2017 (2,802.5 GWh). The growth in energy
sales by the Distribution Utilities is majorly attributed to an increment in
Demand especially from the Industrial Customers during the reporting
period.

4.2.1 Energy Sales by Customer Categories

Electricity customers in Uganda are classified as Domestic,


Commercial, Medium-Industrial, Large-Industrial, Extra-Large Industrial
and Street Lighting by the Electricity Regulatory Authority.

The energy sales by Customer Tariff Category during 2018 is shown in


Figure 20. Across all Utilities, about 66% of the energy sales were made
to Industrial Customers (Medium=16%, Large=26%, Extra-Large=24%)
with the sales to Domestic and Commercial Customers constituting
about 22% and 13%, respectively.

21 | P a g e
Figure 20: Energy sales of Distribution Utilities by Customer Categories

4.3 Energy Distribution Losses

Electricity Distribution Losses still remain one of the major challenges


faced by Uganda’s Electricity Supply Industry. The Distribution Losses
presented here include both Commercial and Technical Losses and
computed as the difference between energy purchased and energy
sold.

Figure 21 shows the five-year historical trend of Distribution Losses.


Overall, the Distribution Utilities recorded a Distribution Loss of 16.8%
during 2018, indicating a 0.5%-point improvement from 17.3% recorded
in 2017. UMEME, the main operator reduced the Distribution Losses to
16.4% in 2018 from 17.3% in 2017; although this was below the target of
14.7% set by the Authority for 2018.

22 | P a g e
Figure 21: Distribution Losses (%)

4.3.1 Energy Losses for UMEME Limited

UMEME Limited is Uganda’s main Distribution Utility, selling about 98% of


the energy that was sold to the end-users in 2018 (see Table 3). Figure
28 shows a reduction in percentages of energy losses of UMEME over
the years with energy losses reducing from 17.2% in 2017 to 16.4% in
2018. Whereas UMEME Limited recorded a reduction in the energy
losses, the performance was below the set targets of the Authority.

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Figure 22: UMEME Limited’s Distribution Energy losses

4.3.2 Energy Losses for Mini-Grids

The overall loss factor for the Mini-Grids increased from 27% in 2017 to
33.4% in 2018, off the Authority set target of 20.68% for the period. By
service territory operated by the Mini-Grids, Figure 23 shows that the
highest energy losses (48.7%) in 2018 were recorded in the North
Western Service Territory (NWST) of UEDCL.

Overall, UEDCL, the second largest Distribution Utility, recorded an


overall Distribution Loss of 36.7%. The energy losses for the other Mini-
Grids including PACMECS, KIL, BECS, and KRECS during 2018 were 9.8%,
16.7%, 23% and 24.8%. Various factors accounted for the losses
including lack of evacuation lines.

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UEDCL Overall=36.7%

Figure 23: Distribution Energy Losses in 2018 by Service Territory

4.4 Customer Growth

At the end of 2018, there were 1,352,735 Customers on the National


Grid (see Figure 24), signifying a 174,923 (15%) increment from the
1,177,812 Customers at the end of 2017.

About 93% of the Customers on the Network are served by UMEME


Limited, with the Customers under the jurisdiction of Mini-Grids
constituting 7%. The Electricity Supply Industry has seen the Customer
connections almost double over the five-year period between 2014
and 2018.

Figure 24: Total Customers on the Network as at the end of December 2018

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By Customer Tariff Structure, Table 4 shows that majority (92%) of the
Customers on the Network are classified as Domestic Customers, with
the other Customer Categories including Commercial, Industrial and
Street Lighting combined constituting about 8%.

Table 4: Total Customers on the Network as at the end of December 2018

Customer category 2014 2015 2016 2017 2018


Domestic 636,485 790,617 907,967 1,080,945 1,242,354
Commercial 58,787 68,710 80,475 93,412 106,824
Medium Industry 2,271 2,534 2,607 2,613 2,760
Large Industry 468 513 527 521 507
Extra Large 38 40
Street Lights 348 311 306 283 250
Total 698,359 862,685 991,882 1,177,812 1,352,735

4.5 Distribution Network Length

At the end of December 2018, the length of the Distribution Network


was 45,423.1 kilometers (Kms) translating into an increment of 5,144.1
Kms compared to the 40,279.0 Kms at the end of 2017. UMEME Limited
Network increased by about 512 Kms, while the distance by other Mini-
Grids combined increased by about 4,631.7 Kms.

The increment in the Network Length of Mini-Grids was mainly


attributed to the Grid Extensions by the Rural Electrification Agency
(REA), the Government Agency that operationalizes Government's
Rural Electrification Function.

26 | P a g e
Figure 25: The Distribution Network Length (In KMS)

4.6 Staff in the Distribution Segment

The movements in the number of contract3 employees in the Electricity


Distribution Segment over the years is presented in Figure 26. At the end
of December 2018, there were 1,907 employees in the utilities
distributing electricity via the National Grid of whom 1,504 (79%) were
employed by UMEME Limited. The number of staff in the Distribution
Segment at the end of December 2018 increased by 4%, compared to
the 1,828 staff at the end of 2017.

Figure 26: Employees in the Electricity Distribution Segment

4.7 Transformation Capacity

Figure 27 shows the Transformation Capacity on the Distribution


Network. At the end of 2018, there were 14,815 Transformers on the
Distribution Network (UMEME Limited=12,476; Mini-Grids=2,331) with a
total Transformation Capacity of about 2,004MVA (UMEME=1,842 MVA;
Mini-Grids=162MVA). The total Transformation Capacity in 2018
increased by 6% compared to the 1,855 MVA reported in 2017
(UMEME=1,744 MVA; Mini-Grids=141 MVA). Majority (37%) of the
Transformers of the Distribution Network are of 50KVA capacity followed
by the 100 KVA (20%) and 200 KVA (14%).
3
This does not include the casual employees

27 | P a g e
Whereas there was an increment in Transformation Capacity in 2018
compared to 2017, these were below the Transformation Capacity
reported in 2016, which was attributed to exclusion of the privately
owned Transformers.

Figure 27: Transformation Capacity over the years

4.8 Key Performance Benchmarks for UMEME LIMITED

Table 5 shows a summary of UMEME Limited’s performance on Key


Performance Indicators.

Connections

UMEME limited had 156,262 new connections in 2018. By Customer


Category, majority of the new connections were of Domestic
Customers (143,352), Commercial Customers (12,860) and Medium
Industrial (98). The drop in Commercial Large Industrial Customers in
2018 compared to 2017 was mainly attributed to drop in energy
consumption of these industries, a factor considered in their
classification.

Customer-related indicators

Across all Customer Categories, the average energy consumption per


Customer in 2018 was 2.4MWh but with variations by Customer
Category. Table 5 shows that on average, a Domestic Customer
consumed 553.1kWh in 2018. On the other hand, a Commercial,

28 | P a g e
Medium Industrial, Large Industrial and Extra-Large Industrial Customer
averagely consumed 3.5 MWh, 182.9MWh, 1.6GWh and 18.3GWh,
respectively in 2018.

Averagely, there were 36.7 Customers per Km of Network Length in


2018 compared to 23.1 Customers per Km in 2017.

Employee-related indicators

The employee-related indicators include Customer to Employee ratio,


Energy sales per Employee, Operations and Maintenance (O&M) Costs
per Employee and Employees per Km of Network Length. On average,
an Employee of UMEME operated 22.9Kms; attended to 840 Customers,
and sold 2.0GWh.

Table 5: Key Performance Indicators for UMEME Limited

2014 2015 2016 2017 2018


Customer Growth (Number) 667,483.0 813,402.0 950,814.0 1,107,179.0 1,263,441.0
Domestic 606,325.0 742,303.0 867,671.0 1,011,673.0 1,155,025.0
Commercial 58,075.0 67,859.0 79,746.0 92,160.0 105,020.0
Medium Industrial 2,267.0 2,416.0 2,564.0 2,506.0 2,604.0
Large Industrial 468.0 513.0 527.0 519.0 502.0
Extra Large 38.0 40.0
Street Lights 348.0 311.0 306.0 283.0 250.0
Energy Purchased (GWh) 2,898.8 3,051.1 3,170.3 3,335.7 3,601.1
Energy Lost (GWh) 622.3 593.8 600.1 573.2 592.0
Distribution Loss Factor 21.5% 19.5% 18.9% 17.2% 16.4%
Energy Sold (GWh) 2,276.5 2,457.4 2,570.2 2,762.6 3,009.1
Domestic 540.9 570.2 584.7 620.6 638.9
Commercial 283.7 309.8 323.0 341.4 367.7
Medium Industrial 390.0 406.1 422.1 434.0 476.3
Large Industrial 1,060.1 1,169.7 1,238.8 718.0 792.9
Extra Large 647.1 732.2
Street Lights 1.9 1.6 1.6 1.6 1.1
Customer Related Indicators
Average Energy Sales per 3.4 3.0 2.7 2.5 2.4
Customer (MWh)
Domestic Customers (Kwh) 892.0 768.2 673.9 613.4 553.1
Commercial Customers (MWh) 4.9 4.6 4.1 3.7 3.5

29 | P a g e
Medium Industries (MWh) 172.0 168.1 164.6 173.2 182.9
Large Industries (GWh) 2.3 2.3 2.4 1.4 1.6
Extra-Large Industries (GWh) 17.0 18.3
Transformation Capacity (kVA) 1,688.7 1,844.1 1,978.3 1,743.6 1,841.8
Total Network Length (KMs) 32,551.1 33,959.8 34,472.2
Customer to Employee Ratio 481.0 597.0 687.0 752.0 840.0
Employee to Energy Sales (MWh) 1,639.0 1,803.0 1,857.0 1,877.0 2,001.0
Employee Cost (Shs) per kWh 28.1 32.5 29.1 30.3 29.4
Km of Network Length per 23.5 23.1 22.9
Employee
Customers per KM of Network 29.2 32.6 36.7
Length
O&M (Shs) per kWh sold 67.2 67.4 64.4 97.0 82.9
O&M (Million. Shs) per KM of 5.1 7.9 7.2
Network Length
Transformation Capacity in kVA per 60.8 51.3 53.4
km

4.9 Key Performance Benchmarks for Mini-Grids

Table 7 shows the performance of the Mini-Grids on selected Key


Performance Indicators (parameters). On average, the Mini-Grids had
8 Customers per kilometer of Network Length and a Customer
averagely consumed 0.6 MWh.

Averagely, an employee attended to 221.6 Customers, contributed to


sale of 139.1 MWh of energy and operated averagely 27.2 Kms of the
Network Length.

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Table 6: Key Performance Indicators for Mini-Grids in 2018

Average Energy sales per customer


Ratio
Customer to Employee

Energy purchased (GWh)


Employee to Energy sales

Distribution Loss Factor

Large Industries (Gwh)


Domestic Customers
Energy Sold (GWh)
Kms per employee

Customers per Km

Medium Industries

Customer growth
Customers(MWh)
Overall (MWh)

Commercial
(MWh)

(MWh)
(Kwh)
CNST 120.9 84.6 31.6 3.8 2.8 2.1 24.1% 0.7 342.3 13.2 103 3,023

EST 206.3 102.3 33.6 6.1 2.6 2.3 13.5% 0.5 273.9 12.7 4,539
KIL 391.7 159.6 24.8 15.8 6.3 5.3 16.7% 0.4 254.4 8.5 16.2 12,927
MWST 286.5 213.4 85.9 3.3 4.3 2.8 35.3% 0.7 339.1 11.2 56.3 3,725
NEST 133.1 127 27.3 4.9 6.1 3.9 35.9% 1 404 14.3 112 0.2 4,126
NNWST 183.1 128.9 28 6.5 6.8 5.4 20.6% 0.7 396.5 10.7 124 7,689
NWST 255.8 228 29.1 8.8 27.5 14.1 48.6% 0.9 374.9 9.1 79 0.6 15,857
SST 315.4 193.6 31.5 10 9.7 7.2 25.9% 0.6 362 9.1 18.7 11,669
SWST 277.3 168.6 32.4 8.5 8.4 5.4 35.7% 0.6 229.8 6.6 88.7 0.7 8,872
BECS 254.6 69.9 7.9 33.9 3.1 2.4 23.0% 0.3 235 5.9 8,657
PACME 104.9 62.1 20.9 5 2.3 2.1 9.8% 0.6 408.8 9.5 3,567
CS
KRECS 122.2 82.2 13 9.4 4.2 3.1 24.8% 0.7 349 14.5 4,643
Overall 221.6 139.1 27.2 8.2 84.1 56.1 33.3% 0.6 323 9.9 50.8 0.4 89,294

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5.0 ELECTRICITY GENERATION AND DISTRIBUTION BY OFF-GRIDS

5.1 Introduction

Off-Grid Power Plants are not connected to the National Grid, thus they
do not sell energy to Uganda Electricity Transmission Company Limited.
They generate and sell their energy directly to the Customers.
Nyagak 1 Hydropower Plant operated by West Nile Rural Electrification
Company Limited (WENRECO) and Kalangala Infrastructure Services
(KIS) operated by Kalangala Infrastructure Services Limited are the
largest Off-Grid Power Plants with Installation Capacities of 3.5 MW and
1.6 MW.
There are smaller Off-Grid Plants operated by Kisiizi Hospital Company
Limited, Absolute Energy Limited, Bwindi Community Micro Hydropower
Limited and Pamoja Energy Limited, among other companies. The
performance of these Plants during 2018 is not reported on, as they are
Licence-Exempted companies, with less stringent reporting
requirements.

5.2 Energy Generation and Sales by the Major Off-Grids

The energy generation and sales of the leading Off-Grids during 2018
are presented in Figure 28. WENRECO, the leading Off-Grid generated
and sold about 16.5GWh to the End-Users in 2018, whereas Kalangala
Infrastructure Services Limited generated and sold about 1.4GWh to
the End-Users.

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Figure 28: Energy sold by Off-Grids from January to September 2018 (in GWh)

As at the end of 2018, the main Off-Grids had 19,431 Customers


(Domestic=12,697; Commercial=6,958 and Industrial=13). The
distribution of Energy Sales by Customer Category (see Figure 29) shows
that 56% of the energy sold by Off-Grids was to Commercial Customers,
25% to Domestic Customers, and 18% to Industrial Customers.

Figure 29: Distribution of Energy Sales by Customer Category

33 | P a g e
5.3 Staff, Customers and Distribution Network in Off-Grids

At the end of 2018, WENRECO and KIS had 112 employees


(WENRECO=97, KIS=15) a number that has remained relatively constant
over the previous two years.

Considering the Length of the Network, the major Off-Grids operated a


total of 851.1 Kms and this constitutes 0.5 Kms, 244.3 Kms and 606.3 Kms
of Street Lights, 11KV and 33KV, respectively.

Table 7: Staff, Customers and Network in Off-Grids

Network Length Customers Staff Customers/Km Customers/Staff Kms of Network/Staff


(Kms) of Network
WENRECO 599 16,737 97 28 172.5 6.17
KIS 253 2,632 15 10.4 175.5 16.83
Total 851 19,369 112 22.8 172.9 7.6

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6.0 TREND OF ESI-RELATED MACRO-ECONOMIC VARIABLES

6.1 Introduction

The Electricity Supply Industry in Uganda is greatly influenced by the


Macro-Economic changes. These include the Consumer Price Index
(CPI), the US Dollar Producer Price Index (US PPI), Exchange Rate of the
Shilling (Shs) to Foreign Currencies and International Fuel Prices. Every
year, ERA sets Base Tariffs which are then adjusted on a Quarterly Basis
for these macro-economic factors. This section provides the
movements in the Macro-Economic Factors.

6.2 Crude Oil Prices

Uganda has two Thermal Power Plants; - Jacobsen and Electromaxx.


These Power Plants use Heavy Fuel Oil (HFO) for power generation. As
Uganda currently imports all the oil used, changes in oil prices on the
International Market affect the generation costs of these Thermal
Power Plants thereby impacting on UETCL’s costs of purchasing power.

Movements in the prices of crude oil on the International Market over


the reporting period are presented in Figure 30. Whereas there was a
drop in the oil prices in November 2018 compared to the previous
month, the oil prices per barrel (US$/b) increased significantly from
January 2017 to October 2018.

The increase in oil prices has been attributed to indications by key


OPEC members; Russia and Saudi Arabia aimed at supporting the
production adjustment to rebalance the Oil Market.

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Figure 30: OPEC Prices of crude oil on the International Market for the period January 2017 to
November 2018 (US$/b)

Source: Argus Media, Direct Communication, OPEC Secretariat and Platts.

6.3 Inflation

Inflation is measured by two parameters, the CPI and the US PPI. The
CPI is used to adjust for costs denominated in local currency, while the
US Producer Price Index (PPI) is for adjustment of costs denominated in
the US Dollar currency (US$).

Changes in price indices (CPI or US PPI) in a given period denote the


level of inflation in that period. The Tariff Adjustments are based on core
inflation, for better reliability of inflation trends.

6.4 Consumer Price Index (CPI)

Consumer Price Index (CPI) measures changes in the price level of the
market basket of consumer goods and services purchased by
households. The Tariff Methodology uses core CPI, which by definition
excludes energy and food prices because of their volatile nature. The
CPI used in the Tariff Methodology and presented in this Report (Figure
31) is as published by the Uganda Bureau of Statistics (UBOS).

The annual Consumer Price Index for the month ending November
2018 was 169.77 compared to 164.15 in November 2017. The annual

36 | P a g e
underlying inflation rate reduced from 3.9% in November 2017 to 3.42%
in November 2018.

This reduction is largely attributed to improved Agricultural production,


leading to low food inflation during the second half of the year and
contained Foreign Exchange Rate pressure amidst a tight Monetary
Policy Regime exercised by Bank of Uganda in 2018.

Figure 31: Monthly Consumer Price Index (CPI)

6.5 United States Producer Price Index (US PPI)

This measures the average change over time in the selling prices
received by producers for their output. The US PPI is published by the
Bureau of Labor Statistics.

The US PPI increased from 200.5 in November 2017 to 205.4 in


November 2018, representing a 2.34% increment. This was mainly
attributed to finished consumer goods and crude material.

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Figure 32: Monthly Movements in the USPPI

Source: United States Department of Labour - Bureau of Labour Statistics

6.6 Exchange Rate

Up to 70% of the costs in Uganda’s ESI are denominated in Foreign


Currency. Uganda’s ESI Tariff Methodology provides for Quarterly
Adjustment of a portion of Electricity Industry costs denominated in
Foreign Currency for changes in the Exchange Rate of the Uganda
Shilling against the US Dollar (US$). The Methodology uses the Mid-
Exchange Rate (the average of the buying and selling rates) for the last
day of the month as published by Bank of Uganda (BoU).

The last day of the Month’s Mid-Exchange Rate of the Uganda Shilling
(Shs) against the US Dollar (US$) for the Quarterly Tariff Determination
periods between November 2016 and November 2018 is presented in
Figure 2.

The Exchange Rate at the end of November 2018 was Shs 3,728.21/US$
compared to Shs 3,634.92/US$ at the end of November 2017. This

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movement represents a 2.57% depreciation of the Shilling against the
US Dollar at the end of November 2018.

The Uganda Shilling was a little unstable throughout 2018 peaking


3,850/US$ during the Second Quarter of 2018, subsiding slightly into the
Third and Fourth Quarters of 2018, owing to improved Foreign Currency
inflows and relaxed Central Bank Monetary Policy and investments in
Treasury Bills, Government Bonds and Infrastructure Investment
requirements together with continued Government Policy for
promotion of local content through the “Buy Uganda Build Uganda”
Policy.

Figure 33: Exchange Rate Uganda Shilling against US Dollar Movement for November 2016 to
November 2018

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7.0 RETAIL TARIFFS

The Authority sets Tariff Rates for the Distribution Licensees in


accordance with Sections 10 and 75 of the Electricity Act, 1999.

7.1 Grid Retail Tariff

FFigure 34 shows the Grid Tariffs for UMEME Limited and UEDCL by
Customer Category over the Tariff Review Periods in 2017 and 2018.
UMEME Limited and UEDCL operate under the same Tariff Structure as
their services are extended across the same service areas.
The observed fall in the Tariff for the Extra-Large Customer Category
during the Third and Fourth Quarters of 2018 compared to the other
Customer Categories or Tariff Review Periods (FFigure 34) is attributed to
the Bujagali Energy Limited Refinancing which was completed on 19th
July 2018.

During the consultative process, it was agreed that the benefits arising
out of the refinancing of the Bujagali Hydropower Plant are allocated
to the Extra-Large Industrial Consumers through the Fourth Quarter of
2018 and this status quo was maintained for the Extra-Large Industrial
Consumers in the First Quarter of 2019.

40 | P a g e
F
Figure 34: Quarterly Retail Tariffs for Customers on the Main Grid by Customer Category over the
Tariff Period 2017 - 2018

7.2 Retail Tariffs for Mini-Grid Customers

Table 8 shows the average Tariff charges per kWh consumed by


customers served by the Mini-Grids (other than UEDCL) over the Tariff
Review Periods in 2018 in comparison with 2017. Comparisons of Tariffs
of the Quarter ending the years 2017 and 2018 show the highest Tariff
increments among the customers served by PACMECS (4-6%) which
was attributable to increase in operational costs.

Table 8: Tariffs for the Customers served by Mini-Grids

Customer 2017 2018 %


Category Change
(Q4
Tariffs)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
KIL Domestic 590.5 590.5 598.4 598.4 598.4 598.4 611.5 611.5 2%
Commercial 532.8 532.8 543.7 543.7 543.7 543.7 556.3 556.3 2%
PACMECS Domestic 590.5 590.5 610.2 610.2 610.2 610.2 635 635 4%
Commercial 544.9 544.9 562.1 562.1 562.1 562.1 593.9 593.9 6%
BECS Domestic 618.6 618.6 618.6 635.3 635.3 635.3 635.3 635.3 0%
Commercial 558 558 558 561.2 561.2 561.2 561.2 561.2 0%
KRECS Domestic 615.3 615.3 615.3 615.3 615.3 615.3 615.3 615.3 0%
Commercial 552.3 552.3 552.3 552.3 552.3 552.3 552.3 552.3 0%

41 | P a g e
APPENDIX
Appendix 1: Annual Distribution of Energy generated by Power Plants on the National Grid in GWh

2013 2014 2015 2016 2017 2018


TOTAL ENERGY GENERATED 3,090.00 3,272.30 3,321.70 3,534.70 3,856.20 4,084.50
LARGE HYDRO POWER PLANTS 2,675.80 2,622.10 2,765.40 2,998.60 3,173.00 3,183.60
Eskom (U) Limited 1,264.50 1,229.90 1,303.40 1,437.70 1,505.90 1,536.20
Bujagali Energy Limited 1,411.20 1,392.30 1,462.00 1,560.80 1,667.10 1,647.40
SMALL HYDRO POWER PLANTS 295.7 313.6 305.3 288.5 268.4 454.5
Muvumbe Hydro (U) Limited - - - - 15.4 28.5
Maji-Power Bugoye-Limited 67.8 92.5 77.2 65.8 27.4 79.9
Kabalega Hydromax 18.7 29.5 33.1 37.2 44.9 40.3
Ecopower-Ishasha 29.1 22.8 24.2 23.4 16.5 21
EMS-Mpanga 101.2 81.8 76.7 71.8 54.8 81.2
Tibet Hima (U) Limited 19.2 27.6 30 31.6 29.5 14.7
Kasese Cobalt Company
59.6 59.4 64.1 58.8 61.5 61.6
Limited
Elgon Hydro Siti 11.5 20
Rwimi 6.9 29.2
Nyamwamba 30.7
Lubilia 13.3
Nkusi 29.3
Waki 1.1
Mahoma 3.6
BAGASSE 116.4 243.2 162.3 177.6 149.8 206.5
Kakira Sugar Works 116.43 243.22 162.29 148.84 126.08 175.17
Kinyara Sugar Works - - - 7.92 7.77 5.7
SAIL Kaliro - - - 20.82 15.92 25.59
THERMAL 2.2 93.3 88.7 66.3 242 207.3
Jacobsen (U) Limited 1.6 37 25.5 4.7 88.7 113.3
Electro-Maxx (U) Limited 0.5 56.3 63.2 61.5 153.3 94
SOLAR 0 0 0 3.7 23 32.6
Access Solar 0 0 0 3.7 16.4 16.5
Tororo Solar 0 0 0 0 6.6 15.9
Xsabo Solar 0 0 0 0 0 0.3

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Appendix 2: UETCL Energy Purchases (GWh) for the period 2014 to January - September 2018 by Source

Utility 2014 2015 2016 2017 2018


Eskom (U) Limited 1,195.5 1,330.8 1,462.2 1,528.3 1,512.8
Bujagali Energy Limited 1,365.8 1,414.6 1,504.9 1,655.1 1,643.8
Isimba 0.9
Kasese Cobalt Company Limited 64.6 61.9 56.8 59.5 59.8
Kilembe Mines Limited 23.2 24.5 25.8 25.6 14.7
Maji-Power Bugoye-Limited 87.1 77.3 65.8 32.2 77.9
EMS-Mpanga 84.8 56.1 85.6 54.8 79.1
Ecopower-Ishasha 22.8 24.8 25.2 16.4 21.0
Kabalega Hydromax 27.5 62.3 34.5 41.2 37.1
Muvumbe Hydro (U) Limited 16.0 28.1
Elgon Hydro Siti 11.4 19.7
Rwimi 6.9 28.8
Nyamwamba 30.5
Lubilia 13.7
Mahoma 3.6
Waki 1.1
Nkusi 29.3
Electro-Maxx (U) Limited 52.4 61.0 61.6 144.3 88.6
Jacobsen (U) Limited 85.5 12.3 4.7 86.8 110.3
Kakira Sugar Works 203.2 164.3 148.8 126.1 175.2
Kinyara Sugar Works 10.3 8.7 7.9 7.8 5.7
SAIL Kaliro 1.1 20.8 15.9 25.6
Access Solar 3.7 19.9 16.3
Tororo Solar 5.5 15.8
Xsabo Solar 0.3
Kenya Power and Lighting Company (KPLC) 29.0 44.7 37.0 9.6 34.8
Rwanda 3.7 3.8 3.8 3.9 4.2
Total 3,255.4 3,348.1 3,549.0 3,867.1 4,078.5

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Appendix 3: Distribution of Energy sold by UETCL for the period 2013 – 2018 in GWh

2013 2014 2015 2016 2017 2018


(Jan-
Sep)
UMEME Limited 2,799.5 2,893.9 3,053.2 3,180.8 3,333.9 2,676.4
Ferdsult 21.2 22.4 26.8 30.4 4.9 -
Kilembe Investments Limited (KIL) 2.7 3.7 4.6 4.9 5.5 4.6
Bundibugyo Energy Cooperative 1.7 1.9 2.2 2.9 2.9 2.2
Society (BECS)
Pader-Abim Community Multipurpose 1.5 1.8 2.2 2.3 2.2 1.7
Electric Co-operative Society Limited
(PACMECS)
Kyegegwa Rural Electricity 1.4 2.1 2.6 3.8 3.0
Cooperative Society -
UEDCL 2.1 5.6 8.5 11.2 46.0 47.6
Kenya Power and Lighting Company 47.8 107.1 55.7 83.2 225.9 101.5
(KPLC)
TANESCO 54.4 55.6 61.4 77.2 79.2 69.5
Rwanda (EWSA) 1.5 2.6 2.7 2.4 9.3 6.2
Democratic Republic of Congo SNEL 2.1 2.4 2.3 2.2 2.5 1.6
Total 2,934.4 3,098.4 3,221.7 3,400.1 3,715.9 2,914.3

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