The Electricity Regulatory Authority (ERA) has slashed Uganda Electricity Transmission Company Limited's (UETCL) capital, operation and maintenance costs by more than half for the period 2020-2022.
Documents seen by Daily Monitor indicate that ERA has approved less than half the money requested for by the power transmission company for its capital, operation and maintenance costs for the multi year tariff period.
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... the Authority considered the application by UETCL and resolved as follows; Transmission energy loss trajectory for the multi-year tariff period of 3.35 per cent in 2020, 3.29 per cent in 2021 and 3.03 per cent in 2022," the November 12, 2019 letter from the regulator, reads in part.
This requires UETCL to apply to the electricity regulator which approves tariff performance parameters for the next review period which is always after three years.
However, the regulator approved substation maintenance costs on the assumption of growth by an average of three substations per year at a growth rate of Shs90m per substation.
