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ERA: Uganda electricity tariffs to drop

Umeme big 3
The grid has got much more electricity thus leading to a drop in tariffs. PHOTO UMEME

Uganda’s Electricity Regulatory Authority (ERA) has announced new electricity end user tariffs with a reduction, implying that consumers in all categories will pay less in this quarter (July-September 2016).

As per the new tariff schedule, domestic consumers will pay sh626.0 per unit from sh640.2, commercial consumers will pay sh566.9 from sh578.

Medium industrial consumers will pay sh524.7 from sh536.2, large industrial consumers sh349.5 from sh361.1 while street lightss will be charged sh608.0 from sh619.5.

According to the a statement from ERA, the reduction in end-user tariffs is largely explained by the increased power dispatch from the cheaper Nalubaale-Kiira power complex that replaced the shortfall in power dispatch from Kakira Sugar Limited (KSL) Cogeneration power plant. KSL was out of production in the month of May and part of June 2016, for annual maintenance.

Umeme bigger

“This review has taken into account changes in; the consumer price index, exchange rate of the Uganda Shilling (Ush) against the United States Dollar (US$), international fuel prices, and the energy
generation mix from the assumptions used in the determination of the 2016 Base Tariffs as well as Umeme Limited and Eskom Uganda Limited verified investments,” ERA said.

ERA explained that:

(i) The Uganda Shilling has depreciated by 0.22% against the US Dollar, from Ush 3,357.1/US$ in November 2015 to Ush 3,364.5/US$ at 31st May 2016.
(ii) The International fuel price for crude oil as at the end of May 2016 was US$ 46.83 per barrel compared to US$ 44.30 per barrel used in the determination of the 2016 Base Tariffs. This represents an
increase in international fuel prices of 5.71%.
(iii)Adjustment of Umeme Limited 2012 and 2013 investments that qualify for inclusion in the Regulatory Asset Base.

 

Qurter 3 2016 [July-Sept] Electricity End-User Tariff by The Independent Magazine on Scribd

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