Govt eyes reduced power tariffs through regional energy body EREA

Kampala, (UG): Government of Uganda through the Ministry of Energy and Minerals Development says the establishment of the East African Energy Union will significantly reduce regional power tariffs in the East African Region which will eventually attract substantial investment, aligning with the region’s collective aspirations against energy poverty.

This was revealed by the Minister of State for Energy, Mr Okaasai Opolot, while officiating at the 26th session of the Executive Committee (EXCO) meeting for the Energy Regulators Association of East Africa (EREA) in Entebbe on Tuesday, December 12, 2023.

“A well-structured East African Energy Union holds the potential to facilitate a cost-effective and market-oriented energy transition. Let us prioritise the shared goal of eradicating energy poverty in East Africa,” Mr Opolot said.

The Minister added that Uganda has taken some strides, like amending the Electricity Act to facilitate direct electricity purchase, aiming to lower end-user tariffs for manufacturers, especially those in proximity to transmission infrastructure.

“We are actively engaging with EAC partner states to establish a Wheeling Framework for effective power purchase from government generation plants,” he said, adding that the association has gone beyond electricity to include petroleum to have a formidable force to regulate the region’s energy.

The Minister said the regulation of energy through the East African Energy Union will ensure the provision of secure, competitively priced, and sustainable energy for both citizens and businesses within the region, hence enhancing the delivery of our transformative agenda on development in the economy.

“We are going to use energy as a tradable item. If we have harmonised regulation, the energy can flow across EAC with defined tariffs which promote and enhance the production of competitive products in East Africa,” he said.

Speaking at the same event, Ms Sarah Wasagali Kanaabi, the chairperson of the Electricity Regulatory Authority of Uganda (ERA) said there are efforts to harmonise regulatory frameworks to harmonise the different country’s tariffs, which is still difficult due to the lack of a common currency in the region.

“Currently, ERA is leading in the regulatory framework and the first four on the continent all come from East Africa. Slowly, we are trying to improve our frameworks and very soon, we shall have harmonised, which will go a long way in harmonising other aspects of the energy sector like costs so that we can try to harmonise the tariffs,” Mr Kanaabi noted.

She added that the Energy Regulators Association of East Africa (EREA) is seeking to have a permanent seat at the EAC to cease operating in its current observer status which will enable the region to ensure energy efficiency through harmonising technology, which is a big determination in the efficiencies and costs of electricity and energy.