Small scale industries oppose new ERA rates

By Prossy Nandudu 

THE Uganda Small Scale Industries Association (USSIA) has rejected a proposal by the Electricity Regulatory Authority (ERA) to increase electricity tariffs for consumers. 

There is a proposal by ERA to increase tariffs for domestic consumers by 10%, commercial consumers by 11% medium industries by 5% and large industries by 9%, while street lighting will be increased by 15%. 

According to ERA, the proposal to increase the tariffs will help them meet the increasing costs incurred during recoveries, especially now that they are largely depending on thermal generation. 

“Whereas it’s important that different companies in electricity regulation recover their costs and make a profit, we also think it’s the duty of the Government to ensure that the cost of doing business doesn’t skyrocket,” said John Walugembe, the executive secretary of USSIA, . 

He warned that if the trend continues, the medium scale industries will not grow. 

“If ERA goes ahead with its plan, it means that they are killing the very sources of revenue, which is the small-scale entrepreneurs, because they will be driven out of business,” observed Walugembe. 

He says small-scale industries have no capacity to organise themselves like the entrepreneurs on Nasser Road who protested during a recent power cut. 

“These are the ones we are speaking for. We thought that by bringing Bujagali dam online, the cost would be brought down, but it’s proving otherwise,” he said. 

He also called on the Government to speed up the construction of Karuma dam, despite the fact that there are still some procurement problems. He also called for increased investment in alternative sources of energy such as solar.