HomeRegional NewsEast AfricaUganda: regulator reduces power tariffs

Uganda: regulator reduces power tariffs

According to the Monitor, the the new schedule indicates that households will now pay Shs687.1 ($0.190) per unit, a decrease from the Shs696.9 ($0.192) they paid in the first quarter.

In addition, the charge for power used by commercial consumers has been reduced from Shs628.1 ($0.173) to Shs620.9 ($0.171) per unit.

Medium industrial consumers will now pay Shs569.7 ($0.157) down from Shs575.1 ($0.159) per unit.

ERA’s new chief executive officer, Ziria Tibalwa Waako, explained: “The quarterly tariff adjustment provides for adjustment of the annual base tariffs in line with change in inflation, foreign exchange rate and fuel prices.”

Waako noted that core consumer price index increased from Shs159.4 ($0.044) in the base period to Shs161.68 ($0.045) as at the end of February 2017.

Quarterly electricity tariff adjustment

The charge for local authorities for street lighting has also been reduced from Shs679.7 ($0.188) to Shs671.2 ($0.185) per unit.

Media reported that although the adjustment presents some relief for end-users, the new charge for large industries is still two times higher than the $0.05, which President Yoweri Museveni has been promising industrial users. Read more…

Previously, Museveni appealed to the African Development Bank (AfDB) to assist in lowering electricity tariffs.

At the time, the AfDB’s President Akinwumi Adesina, said the bank will restructure the loan’s tenure in order to provide affordable electricity to all Ugandans. Read more…

Inflation adjustment factor

Waako said: “The resultant effect is a positive inflation adjustment factor of Shs1.5 (0.00041) per kilowatt hour (kWh) for domestic consumers, Shs1.2 ($0.00033)/kWh for commercial consumers, Shs1.3 ($0.00036) /kwh for medium industrial consumers and Shs0.6 ($0.00017) /kwh for large industrial consumers…”

In the arriving at the end-user tariff for the next quarter, it was also noted that the Uganda Shilling appreciated against the US dollar.

Whereas at some point the electricity utilities needed Shs3, 630.22 ($1.00423) to get one US dollar, by the end of February 2017 they needed just Shs3, 586.69 ($0.99219), media stated.


Featured image: Tweak Town

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.