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Electricity tariffs drop by Shs4.7
Engineers carryout mechanical works at Layibi substation in Gulu town. Electricity access is still largely low with supply only concentrated in urban and semi-urban areas in central and western Uganda. PHOTO/FILE
What you need to know:
Addressing journalists at their headquarters yesterday, Mr Julius Wandera, the director of Corporate Affairs ERA, said the pricing is an average weighted price index of all the customer categories that was determined taking into consideration a number of factors
The Electricity Regulatory Authority (ERA) says it has approved a reduction of the power tariffs by Shs4.7 for the next three months, effective April 1.
Addressing journalists at their headquarters yesterday, Mr Julius Wandera, the director of Corporate Affairs ERA, said the pricing is an average weighted price index of all the customer categories that was determined taking into consideration a number of factors.
Such factors include the macro-economic aspects, international prices of fuel, exchange rates of the Uganda shilling against the dollar, core consumer price index, the energy generation mix and costs approved by the authority.
The new end-user tariffs will be charged by Umeme beginning April.
According to the new schedule taking effect April 1, domestic consumers on low voltage single phase supplied at 240 volts maintain the first 15 lifeline units at Shs250 per kwh while the new energy units between 16-80 will be paying Shs805 per kwh down from Shs808.9 in the last tariff. The domestic cooking tariffs of between 81 and 150 units remain at Shs412 per kwh while the energy units above 150 will also pay Shs805 per Kwh down from Shs.808.9.
Commercial consumers on the Three Phase low voltage load not exceeding 100 Amperes, will be paying Shs611.8 down from Shs642.6 in the last quarter during ordinary hours.
During peak hours, commercial consumers will be paying Shs807.5 per kilowatt, down from Shs.820.3 they have been paying in the last quarter.
The charge per KWh for customers on the medium industrial category has dropped to Shs461.8 KWh from 472.3 during ordinary hours and at peak hours, they will pay Shs636 per KWh.
The large industrial customers have seen a reduction of Shs1.9 both during the ordinary working hours and peak hours on the January tariff. “Every quarter, the ERA does adjustment of tariffs. We set the base tariff in January. We look at the exchange rate, inflation and the price of fuel,” said Mr Wandera.
“The months of January and February were dry affecting the hydrology. Small hydro stations had low supply of water affecting power generation and UETCL resorted to buying power from the large hydro stations,” he said.
When asked what could have caused the drop in prices, he attributed it to the drop in global fuel prices, the decision to purchase power from Nalubaale, Kira, Isimba power dams, the increased demand for electricity which has seen the highest registered demand of electricity reaching 863MW in January and the appreciation of the dollar against the shilling.
Asked how many customers they have, Mr Peter Kauju, the Umeme communications manager, said since 2005, their customer base grew from 250,000 and by end of 2023, they anticipate to reach 2 million when Umeme connects 240,000 new customers.
Asked whether they are not afraid of shortage of power since the peak demand is almost touching the installed capacity of 1,200MW, he said Uganda runs an energy mix which can cover the short and medium term until Karuma comes in.
