Power tariffs to rise in December
Oct 09, 2006
ELECTRICITY prices are to increase in December, sources have said.<br>Power distributor Umeme has submitted applications for a tariff increment due to increased reliance on the more expensive thermal generation.
By Ibrahim Kasita
ELECTRICITY prices are to increase in December, sources have said.
Power distributor Umeme has submitted applications for a tariff increment due to increased reliance on the more expensive thermal generation.
However, it is not yet clear how much increment the power distributor has proposed to the Electricity Regulatory Authority (ERA) for approval.
ERA has the final decision to approve tariffs after consulting stakeholders.
A source said Umeme’s request for tariff adjustments is aimed at bolstering investments and revenues when it takes over the full 20-year concession.
“The old agreement stipulated that Umeme pay for losses incurred in distribution. This affected business,†said the source.
“But again, it allows Umeme to adjust power tariffs accordingly. As long as there is thermal generation, power tariffs have to go up to make business sense,†the source said.
Umeme has up to December to decide whether to take over the full distribution concession of 20 years.
Uganda Electricity Transmission Company (UETCL) has applied to ERA for tariff increments to cater for the high cost of operating thermal generators. Some of UETCL’s licences are for system operator and operator of high-voltage grid.
Domestic consumers pay sh298.2 per kilo-watt hour, commercial premises sh2868 and large industries sh120.8.
ELECTRICITY prices are to increase in December, sources have said.
Power distributor Umeme has submitted applications for a tariff increment due to increased reliance on the more expensive thermal generation.
However, it is not yet clear how much increment the power distributor has proposed to the Electricity Regulatory Authority (ERA) for approval.
ERA has the final decision to approve tariffs after consulting stakeholders.
A source said Umeme’s request for tariff adjustments is aimed at bolstering investments and revenues when it takes over the full 20-year concession.
“The old agreement stipulated that Umeme pay for losses incurred in distribution. This affected business,†said the source.
“But again, it allows Umeme to adjust power tariffs accordingly. As long as there is thermal generation, power tariffs have to go up to make business sense,†the source said.
Umeme has up to December to decide whether to take over the full distribution concession of 20 years.
Uganda Electricity Transmission Company (UETCL) has applied to ERA for tariff increments to cater for the high cost of operating thermal generators. Some of UETCL’s licences are for system operator and operator of high-voltage grid.
Domestic consumers pay sh298.2 per kilo-watt hour, commercial premises sh2868 and large industries sh120.8.