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ERA to consult public on power dues

By Vision Reporter

Added 1st July 2008 03:00 AM

THE Electricity Regulatory Authority (ERA) is to conduct a public hearing about Aggreko’s application to increase electricity prices. Frank Ssebowa, the chief executive officer, said the public should present their input before a final decision is made.

By Ibrahim Kasita

THE Electricity Regulatory Authority (ERA) is to conduct a public hearing about Aggreko’s application to increase electricity prices. Frank Ssebowa, the chief executive officer, said the public should present their input before a final decision is made.

The public hearing will be conducted on Wednesday, July 9, at the Imperial Royale Hotel in Kampala.

Aggreko International, the emergency power giant, applied for a tariff increment, amendment of its generation licence and adjustment of other charges.

The request to renew the licence follows extension of the plant for three months from May 28 to August 31 to ensure uninterrupted electricity supply.

“The need to review the tariffs is a result of increased costs of operation and maintenance due to the price increase of oil globally.”

Aggreko also applied for a review of other charges as negotiated with the Uganda Electricity Transmission Company (UETCL) in the amended power purchase agreement.

The proposed amendment of a unit charge is $35.9 from $45.9 megawatt per hour, while monthly capacity payment is $982,763 from $837,673.

Aggreko wants annual capacity payment to rise to $11,793,150 from $10,052,100, while the proposed amendment for daily contracted capacity per megawatt hour is $900 from $600.

The proposed amendment of the plant operation and maintenance remains at $9.5 per megawatt hour, while the fuel logistic component’s is $66.2 from $58.34 per megawatt hour.

The proposed fuel component for Tanzania, which was not available in the original contract, is $102.6 per megawatt, while the specific fuel consumption rate in litres per megawatt per hour will remain at $277.79.

“Under Regulation 16 (application for permit, licence and tariff review) 2007, ERA invites stakeholders and the public to make comments or objections on the application within 14 days after the publication of the notice (advert).”

The Lugogo plant was extended to August when another 50MW thermal generation plant in Namanve is expected to be commissioned.

The $167.8m Lugogo thermal plant will be decommissioned and replaced by the heavy-fuel oil thermal plant at Namanve, which is cheaper at $88m.

The Lugogo plant was leased in May 2005 following the signing of a three-year power purchase agreement between UETCL and Aggreko.

ERA to consult public on power dues

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