Uganda: Electricity Tariffs Drop

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Households will pay Shs10 less for each unit of electricity this quarter following the Electricity Regulatory Authority (ERA’s) reduction of the end-user tariffs.

According to the new schedule, households will pay Shs687.1 per unit, a decrease from the Shs696.9 they paid in the first quarter.

The Shs687.1 charge applies to each of the units above the sixteenth; each of the first 15 units costs Shs150.

The charge for power used by commercial consumers has been reduced from Shs628.1 to Shs620.9 per unit. Medium industrial consumers will pay Shs569.7 down from Shs575.1 per unit.

On the other hand, large industrial consumers will pay Shs370.2 per unit; last quarter they paid Shs383.5.

The new charge for large industries is still two times higher than the $0.05 (Shs185.1) President Museveni has been promising industrial users.

ERA also reduced the charge local authorities will pay for street lighting, from Shs679.7 to Shs671.2 per unit.

ERA’s new chief executive officer Ziria Tibalwa Waako, said: “The quarterly tariff adjustment provides for adjustment of the annual base tariffs in line with change in inflation, foreign exchange rate and fuel prices.”

Ms Tibalwa, an engineer, noted that core consumer price index increased from Shs159.4 in the base period to 161.68 as at the end of February 2017.

On the other hand, the United States Producer Price Index increased from 196.4 to 197.8.

“The resultant effect is a positive inflation adjustment factor of Shs1.5 per kilowatt hour for domestic consumers, Shs1.2/kwh for commercial consumers, Shs1.3kwh for medium industrial consumers and Shs0.6kwh for large industrial consumers… ” Ms Tibalwa said.

In the arriving at the end-user tariff for the next quarter, it was also noted that the Uganda Shilling appreciated against the US dollar.

Whereas at some point the electricity utilities needed Shs3, 630.22 to get one US dollar, by the end of February 2017 they needed just Shs3, 586.69. Further, the international fuel price increased from $51.9 per barrel to $53.37 per barrel as at the end of February 2017.

Source: All Africa

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