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The Electricity Regulatory Authority set up a legal and regulatory framework that has created an enabling and conducive environment that supports private investment based on an established legal, policy and regulatory framework.
Liberalisation of the Electricity Industry
In November 1999, the Electricity Act, 1999, Chapter 145 was enacted to provide for among others; the establishment of the Electricity Regulatory Authority and its functions, powers and administration. The Act also provided for the liberalization and introduction of competition in the electricity sector.
The liberalization of the sector led to the unbundling of the Uganda Electricity Board (UEB) which was a vertically integrated public utility. UEB a monopoly playing all the functions of generating, transmiting, distributing and selling of electricity.
The unbundling of UEB led to the creation of three successor companies namely: Uganda Electricity Generation Company Limited (UEGCL), Uganda Electricity Transmission Company Limited (UETCL) and Uganda Electricity Distribution Company Limited (UEDCL).
The enactment of the 1999 Electricity Act, Cap 145 Lwas of Uganda opened the Electricity Sector to private investment in the generation and distribution segments.