HomeRegional NewsEast AfricaUganda drops retail electricity rates

Uganda drops retail electricity rates

In East Africa, the Ugandan Electricity Regulatory Authority has cut down the electricity trading prices between Shs11 ($0.0032) and Shs7.8 ($0.0023) per unit for different consumer categories.

The Daily Monitor reported that ERA has reduced the end-user electricity rates for domestic consumers from Shs651 ($0.194) to Shs640.2 ($0.191) per unit, due to the currency doing well against the US dollar.

Reduction in international fuel prices

Benon Mutambi, the CEO of ERA, stated that another contributing factor to amending the power tariffs is the reduction in the international fuel prices.

“The Uganda Shilling appreciated by 0.25% against the United States Dollar, from Shs3,357 ($1.004) in the base period to Shs3,348 ($1.001) as at the end of February 2016,” Mutambi said.

He added: “The resultant effect is a negative exchange rate adjustment factor of minus Shs1.2 ($0.0003) per kilowatt for domestic consumers, -0.1/kWh for commercial consumers, -1.0/kWh for medium industries industrial consumers and -0.8 for large industrial consumers.”

[quote]The media reported that these electricity rates reductions will see a commercial consumer such as a miller or welder paying Shs578.3 ($0.172) down from Shs587, ($0.175), while the tariff for a medium industrial consumer has reduced from Shs544 ($0.162) to Shs536.2 ($0.160) per unit.

Furthermore, a large industrial consumer will be paying Shs361.1 ($0.108) down from Shs369 ($0.110) per unit.

International fuel price –determine base electricity rates

Mutambi stated that over the same period, the international fuel price reduced from $44.3 per barrel, used in the determination of the base tariffs, to $32.5 per barrel as at the end of February.

ERA’s CEO stated that the new power tariff will be effective to all consumer bills as from April through to June 2016.

In Uganda, over the past 11 years, retail electricity tariffs have been on the increase.

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.