New power tariffs excite Kalangala
A man inputs a Yaka token number. Some businessmen and women have complained of failing to claim back the VAT that they pay to suppliers of their inputs, an entitlement they deserve, according to URA. PHOTO/FILE
What you need to know:
- Until September, domestic power consumers were paying Shs1,269.5 per KWh, while commercial consumers were charged Shs1,631.8 per KWh.
Industrialists, cottage industry owners, and leaders in Kalangala District are optimistic about the newly-revised power tariffs announced by the Electricity Regulatory Authority (ERA).
According to district leaders, the new tariffs on Buggala Island have been reduced by Shs275 for domestic consumers and Shs673.4 for commercial users, a move expected to boost the growth of cottage industries.
Mr Rajab Ssemakula, the Kalangala District LC5 chairperson, expressed excitement about the development, saying the district is now actively seeking land to establish an industrial park.
“Kalangala has lost several promising industrialists who relocated to the mainland, especially Masaka, due to inadequate power supply and high tariffs. We are relieved that the government has responded to our repeated calls,” he said on October 4.
Until September, domestic power consumers were paying Shs1,269.5 per KWh, while commercial consumers were charged Shs1,631.8 per KWh.
These high rates had long discouraged power consumption in the district.
In comparison, other regions of the country have tariffs ranging between Shs250 and Shs803 for domestic users and Shs324.5 to Shs797.5 for commercial users, making Kalangala's rates significantly higher.
Mr Henry Baale, a resident of Kanyogoga Village, explained how the high tariffs had limited his household's power use.
"I was buying 6 units for Shs10,000, which wasn't enough to meet basic domestic needs like cooking. We are somewhat relieved now," he said.
More concerns
Ms Neima Nakwanga, a businesswoman in Buggala Sub-county, welcomed the tariff reduction but raised concerns about the unreliable power supply.
“We are happy about the new tariffs, but we still appeal for a stable power supply,” she said.
The reduced tariffs follow the installation of a marine cable at the bottom of Lake Victoria, connecting the island to the national grid.
ERA’s October 2 announcement confirmed that domestic consumers will now pay Shs994.5 per KWh, while commercial customers will be charged Shs673.4 per KWh.
Medium industrial consumers with a maximum demand of 500 KVA will also pay Shs673.4 per KWh.
Large industrial consumers using up to 15,000 KVA will be charged Shs502.8 per KWh, while off-peak consumers will pay Shs252.5 per KWh.
Despite the tariff reductions, power supply issues persist.
Mr Joseph Mulindwa, the spokesperson for Kalangala Infrastructure Services (KIS), attributed ongoing load shedding to problems with the Masaka-side marine cable.
"We hope the issue will be resolved soon," he said.
