Electricity Regulatory Authority (ERA), a government agency that regulates, licenses, and supervises the generation, transmission, distribution, sale, export, and importation of electrical energy, has announced a reduction in the cost of power tariffs.
In a press statement signed by ERA’s director Corporate and Consumer Affairs, Julius Wandera, the new Electricity End-User Tariffs which indicates “a remarkable” reduction across consumer categories, with the exception of street lighting, will be charged by UMEME Limited for the supply of electrical energy in the billing period of July to September 2021.
According to the new tariffs, domestic consumers will pay Shs250 for the first 15 units under the lifeline tariff and thereafter pay Shs747.5 for the next units purchased, a reduction from Shs750.9 in the previous quarters. Similarly, commercial consumers will pay Shs616.6 from Shs639.8, medium industrial consumers-Shs526.9 from Shs556.0, large industrial consumers- Shs355.0 from Shs361.0, while extra large consumers- Shs300.2 from Shs301.7, and the tariff for street lighting has been maintained at Shs370.
“The approved electricity end-user tariffs represent a weighted average reduction of 2%, relative to the tariffs of the second of 2021," the press statement reads.
ERA CEO, Eng Ziria Tibalwa Waako, said that the commercial consumers and medium industrial consumers are the biggest direct beneficiaries of the reduction in tariffs applicable for the period of July to September 2021, with a reduction of as much as Shs23.2 per unit and Shs29.1 per unit of electricity consumed for the two consumer categories respectively.
The reduction in end-user tariffs has been attributed to the appreciation of Uganda Shilling against the United States dollar. In the second quarter of 2021, Uganda shilling appreciated by 3.3% against the US dollar from Shs3,665/US$ as at 26th February 2021 to Shs3,546.0 as at 31st May 2021. Era also attributed the fall in power tariffs to the increment in the international fuel prices which has registered a 66.9% rise from $40.08 per barrel to $66.91 per barrel in May 2021.
In October 2020, President Yoweri Museveni took a swipe at electricity distribution company, Umeme limited over the supply of expensive electricity to Uganda, hinting at reasons why the concession talks between Government and the South African firm have stalled.
“We are working hard to evacuate power from Karuma dam to manufacturing hub and export excess power. There is a group called Umeme. These are private people who want to make high profits. Can you make high profits from bone marrow and then we survive? We are debating that. If you are looking for high profits, there are areas you can go to invest in clubs, casinos I will not follow you,” Museveni said.
