The Ugandan President, Yoweri Museveni while attending a trade show organised by the Uganda Manufacturers Association, pledged to lower electricity tariffs from $11 cents to $5 cents, the Monitor reported.
This is said to ease the burden that is currently being felt by the manufacturing sector.
Museveni said: “Power from Nalubale Power Station is $1 cent while Bujagali Power Station is $11 cents. I negotiated with Bujagali owners when I was in New York and they have agreed to bring it down to $7 cents. But through my own tricks, I will bring it down to $5 cents.”
However, Museveni did not specify when this new promise will materialise.
Price applies only to manufactures – Museveni
The President emphasised that “this tariff is only for manufactures and maybe people in the hotel industry and not for preachers at night, Nsenene (grasshoppers) hunters and dancers in night clubs.”
The development was well welcomed by those involved in the sector, including by Paresh Shukla, managing director of Simba Automotives Ltd, who said lowering the power tariff is one way to fast-track Uganda’s desire to achieve middle income status by 2020.
“This is long overdue for the manufacturing sector,” Shukla underlined.
Media reported that Museveni had previously encouraged the manufacturers to consider using power during off-peak hours because the costs are lower and would favour them.
He said: “You (manufacturers) use power from 6pm to 10pm when Ugandans are still awake. Why don’t you work at night?”
Electricity trading prices reduced
In Q1 2016, the Ugandan Electricity Regulatory Authority cut down the electricity trading prices between $0.0032 and $0.002 per unit for different consumer categories.
These consumer categories included commercial consumers such as a miller or welder, which saw a price cut to $0.172 down from $0.175, while the tariff for a medium industrial consumer reduced from $0.162 to $0.160 per unit.
As for large industrial consumers, their prices went from $0.110 to $0.108 per unit.
Lastly, electricity rates for domestic consumers was also reduced from $0.194 to $0.191 per unit, due to the currency doing well against the US dollar, the regulator stated.
Featured image: President Yoweri Museveni. Source: International Business Times