Price increase
Price increase
Should the regulatory authority not have placed a cap on the electricity tariff it could have risen to 8.2%

In East Africa, The Ugandan Electricity Regulatory Authority has announced a 2.5% electricity tariff increase as a result of the strength of the Dollar over the Shilling, The Daily Monitor reported.

The country’s retail tariffs for the period of July 2015 to September 2015 indicate that Ugandan consumers will pay Shs558.4 ($0.17) up from Shs544.9 ($0.16) on each unit of electricity.

Foreign exchange

Principal communications officer at the Electricity Regulatory Authority, Julius Wandera, told media that the foreign exchange factor contributed to the largest share of the increased tariff despite fall in global prices of oil.

Capping the tariff

If the regulator did not implement a tariff cap the increase could have been close to 8.2%.

The Electricity Regulatory Authority said: “The Quarterly Tariff Adjustment Methodology provides for a capping mechanism in which the resultant end-user retail tariff should not increase by more than 2.5% relative to the previous quarter.”

Wandera said: “The capping of the increment at 2.5% was agreed to by manufacturers and other stakeholders in 2014 as we negotiated this tariff-setting regime. If we had increased the tariff by 8.2%, power would have been more expensive for Ugandans.”