ERA reduces power tariffs - Daily Monitor

ERA reduces power tariffs

Tuesday October 11 2016

Benon Mutambi

Benon Mutambi  


KAMPALA- The Electricity Regulatory Authority (ERA) has reduced the end–user electricity tariffs by razor–thin margins.

This though is the fourth time this year the regulator is reducing the end–user power tariffs.
According to the schedule seen by Daily Monitor, households will this quarter pay Shs623.6, a reduction from Shs626.0, per unit.

The new tariff will apply to each unit above the 15th, the charge for each of the first 15 units is Shs150. And, the new tariff will apply to Umeme Uganda Limited’s, one of Uganda’s eight electricity distribution companies, consumers.
As of 2015, the company had 800, 000 domestic consumers, who accounted for 28 per cent of its Shs972 billion revenue.

This quarter, commercial consumers such as milling and welders will pay Shs565.1, down from Shs566.9 per unit.

On the other hand, medium industrial concerns will pay Shs523 per unit, which is, Shs1.7 less than they paid in the third quarter.

The large industrial consumers will pay Shs347.1, down from Shs349.5 per unit whereas city and municipal authorities will pay Shs606.2 per unit for street lighting, a decrease from Shs608.

ERA’s chief executive officer Benon Mutambi attributed the reduction to changes in consumer price index, the exchange rate of the Shilling against the US dollar, international fuel prices, energy generation mix and Umeme and Eskom Uganda Limited’s verified investments.

“More specifically,” Mr Mutambi, an economist, said, “The Uganda Shilling has depreciated by 0.55% against the US Dollar, from Shs3, 357.1/$ in November 2015 to Shs3, 375.6/$ as at 31 August 2016.”

Through an October 6 statement, Mr Mutambi added that the international fuel price for crude oil as at the end of August 2016 was $43.10 per barrel compared to $44.30 per barrel used in the determination of the 2016 Base Tariffs.

“This represents a decrease in international fuel prices by 2.71% from the base period,” Mr Mutambi said.

About 50 per cent of the electricity on the national grid is from the Bujagali Hydro Power Plant in Jinja/Buikwe, 80 kilometres east of Kampala.