Learning from Power Sector Reform Experiences : The Case of Uganda
Uganda's power sector structure is among the most sophisticated in Sub-Saharan Africa, and Uganda is one of only a handful of countries in the region where tariffs are close to being cost reflective. While reforms were swift and comprehensive,...
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| Format: | Working Paper |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/964971555504602614/Learning-from-Power-Sector-Reform-Experiences-The-Case-of-Uganda http://hdl.handle.net/10986/31562 |
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okr-10986-315622022-09-20T00:14:37Z Learning from Power Sector Reform Experiences : The Case of Uganda Godinho, Catrina Eberhard, Anton POWER SECTOR REFORM ELECTRICITY POWER GENERATION ACCESS TO ENERGY STATE-OWNED ENTERPRISES REGULATION PRICING HYDROPOWER ENERGY EFFICIENCY Uganda's power sector structure is among the most sophisticated in Sub-Saharan Africa, and Uganda is one of only a handful of countries in the region where tariffs are close to being cost reflective. While reforms were swift and comprehensive, following the 1999 Electricity Act, significant difficulties were encountered along the way that prevented the benefits of reform from materializing until much later. The failed first attempt with the Bujagali Hydropower independent power producer left the country heavily exposed to the 2005/06 and 2010/12 droughts, which in turn created difficulties for the new private distribution utility, Umeme, and led to a relaxation of the regulatory performance targets for the concession. This situation led to a buildup of frustration with the new operator and the launch of two public enquiries, which recommended termination of the concession. In 2012, with the easing of drought conditions and the completion of the Bujagali Hydropower Project following a second independent power producer arrangement, there was improvement in the availability of power. This made it possible to set more demanding performance targets for the concessionaire, Umeme, which fed through into substantial improvements in operational efficiency and accelerating service coverage. Although the reform model was eventually able to deliver results, the associated cost was comparatively high. Furthermore, the extension of the private concession model to financially unviable rural areas did not prove to be successful. Access rates began to pick up only following the adoption of a revised approach in 2012, built around government-led and donor-funded expansion of rural networks. 2019-04-18T20:48:34Z 2019-04-18T20:48:34Z 2019-04 Working Paper http://documents.worldbank.org/curated/en/964971555504602614/Learning-from-Power-Sector-Reform-Experiences-The-Case-of-Uganda http://hdl.handle.net/10986/31562 English Policy Research Working Paper;No. 8820 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Uganda |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
POWER SECTOR REFORM ELECTRICITY POWER GENERATION ACCESS TO ENERGY STATE-OWNED ENTERPRISES REGULATION PRICING HYDROPOWER ENERGY EFFICIENCY |
| spellingShingle |
POWER SECTOR REFORM ELECTRICITY POWER GENERATION ACCESS TO ENERGY STATE-OWNED ENTERPRISES REGULATION PRICING HYDROPOWER ENERGY EFFICIENCY Godinho, Catrina Eberhard, Anton Learning from Power Sector Reform Experiences : The Case of Uganda |
| geographic_facet |
Africa Uganda |
| relation |
Policy Research Working Paper;No. 8820 |
| description |
Uganda's power sector structure is
among the most sophisticated in Sub-Saharan Africa, and
Uganda is one of only a handful of countries in the region
where tariffs are close to being cost reflective. While
reforms were swift and comprehensive, following the 1999
Electricity Act, significant difficulties were encountered
along the way that prevented the benefits of reform from
materializing until much later. The failed first attempt
with the Bujagali Hydropower independent power producer left
the country heavily exposed to the 2005/06 and 2010/12
droughts, which in turn created difficulties for the new
private distribution utility, Umeme, and led to a relaxation
of the regulatory performance targets for the concession.
This situation led to a buildup of frustration with the new
operator and the launch of two public enquiries, which
recommended termination of the concession. In 2012, with the
easing of drought conditions and the completion of the
Bujagali Hydropower Project following a second independent
power producer arrangement, there was improvement in the
availability of power. This made it possible to set more
demanding performance targets for the concessionaire, Umeme,
which fed through into substantial improvements in
operational efficiency and accelerating service coverage.
Although the reform model was eventually able to deliver
results, the associated cost was comparatively high.
Furthermore, the extension of the private concession model
to financially unviable rural areas did not prove to be
successful. Access rates began to pick up only following the
adoption of a revised approach in 2012, built around
government-led and donor-funded expansion of rural networks. |
| format |
Working Paper |
| author |
Godinho, Catrina Eberhard, Anton |
| author_facet |
Godinho, Catrina Eberhard, Anton |
| author_sort |
Godinho, Catrina |
| title |
Learning from Power Sector Reform Experiences : The Case of Uganda |
| title_short |
Learning from Power Sector Reform Experiences : The Case of Uganda |
| title_full |
Learning from Power Sector Reform Experiences : The Case of Uganda |
| title_fullStr |
Learning from Power Sector Reform Experiences : The Case of Uganda |
| title_full_unstemmed |
Learning from Power Sector Reform Experiences : The Case of Uganda |
| title_sort |
learning from power sector reform experiences : the case of uganda |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/964971555504602614/Learning-from-Power-Sector-Reform-Experiences-The-Case-of-Uganda http://hdl.handle.net/10986/31562 |
| _version_ |
1764474609168547840 |