What new power tariffs mean for the local man
May 15, 2006
<br>FROM June 1, Uganda’s electricity tariffs will rise more than a third as the government seeks resources to tackle a looming power crisis and frequent blackouts.
By Carol Natukunda
FROM June 1, Uganda’s electricity tariffs will rise more than a third as the government seeks resources to tackle a looming power crisis and frequent blackouts.
Domestic consumers and small businesses will pay 37% more, while charges for heavy industries will go up by 58%, the Electricity Regulatory Authority (ERA) which regulates Uganda’s power sector, announced last week. The hike comes barely a year after ERA announced a 24% increase in power rates in January.
Under the new rates, domestic consumption will be at an average sh298.2 per unit up from the previous sh216.9. Commercial consumption will on average cost sh286.8 per unit from sh208.3. Medium industries will have to pay sh261.5 per unit from sh182.8. Large industries will pay sh120.8 per unit up from sh73.6, while street lighting will be at sh282.8 up from sh205.3.
What is the intention?
Frank Sebbowa, the chief executive officer of ERA, says the increment was prompted by the high cost of thermal electricity generation. The government says it cannot allocate enough money alone to fund the procurement of thermal power.
What do the high prices mean for local consumers?
With constant load-shedding, high fuel and food prices and now the high electricity tariffs, Uganda’s cost of living is undoubtedly worrying. If you have been paying sh50,000 per month, you would have to pay a third more –– about sh67,000. “But your bill might be the same like what you were previously paying, since there is load-shedding most of the time,†an official at ERA says on condition of anonymity.
It is estimated that a 100-watt light bulb consumes sh900 worth of electricity per month on average use.
The cost may not be significant, but, where there is a bulb or several lights left on, it starts to add up. Many people have started using bright flood (tube-like) lights for security purposes outside houses. These consume power worth about sh6,480 per month each.
Many families have their TVs on almost continually. If your television is on for eight hours everyday, you will add sh8,640 to your electricity bill at the end of the month.
Fans are touted as an excellent way to keep cool cheaply, but the truth is that a fan costs you sh3,456 per month. An electric oven costs sh5,616 per month, while the cooker is sh4,500 if one uses it one to two hours a day for a month. This could be an interesting comparison when you consider that gas perhaps costs, more less the same.
Experts say a refrigerator consumes electricity worth between sh1,260 and sh3,060 per month. Two main factors determine the cost –– a bigger fridge uses more electricity, experts also say if your fridge is more than 10 years old, it consumes electricity twice as much as a new one.
Let’s move on to the laundry room and precisely the washing machine. It consumes electricity worth about sh7,200 a month.
An electric hand dryer can consume electricity worth sh8,640 a month. Ironing your clothes takes up about sh720 when on for 20-30 minutes, per month, while the water heater, including the electrical kettle have typical monthly takes up to sh45,000.
Since February, consumers have had electricity for only 24 hours of every 48 hours, and businesses have been forced to rely on costly diesel generators to keep in production. Households still feel a bigger blow, as the cost of diesel is consequently charged on them through the prices they pay for the goods and services.
Many people are dismayed. “Should one have to rather do without things like ironing, refrigerators, cookers, heaters and later on maintaining your small business if you have any?†wonders a 40-year-old mother of five.
“It seems like we are paying more for more darkness, than for lighting,†points out another.
What can be done?
Even though the tariffs are set to increase soon, something can be done to avoid the big bill at the end of the month.
Cooking: James Baanabe, an official with the Energy Resources Department, says using improved charcoal stoves and firewood, could save about 40% of energy.
“Ensure that the sizes of the cooking pans match your cooking appliances to reduce unnecessary loss of heat. Cookers with hotplates are more efficient than coils,†he says.
Baanabe also recommends use of pressure cookers. “You cook at a high temperature and pressure, there by reducing the time needed to cook a meal,†he says.
Lighting: According to Simon Kalanzi, a senior energy officer in the ministry of energy, lighting accounts for more than 20% of electricity spending.
He advises that it is important to opt for fluorescent energy-savings bulbs.
“They give off less heat and use less energy compared to the regular bulbs,†he says. Kalanzi also says lights should be switched off when not needed.
Ironing: Beatrice Were Kabambo, a private energy researcher in Nakasero, says you should neatly fold your clothes after they have dried, to avoid creases. “Ironing creased clothes take about 11.4% more of energy, because you would be struggling to remove the little folds,†she says.
A colour TV of 55-90 watts and 15-watt fan each take about 3% of energy.
Kabambo advises that they should not be left on the whole day.
Appliances: According to ERD, one should not leave electric appliances, such as cookers, heaters, ovens on standby, because they would use about a quarter of the electricity.
“These appliances may draw the power, even when you are not using them, but are not removed from the main switch,†they say.
Refrigerators: Kabambo says you need to set your refrigerator thermostat at 40 degrees Celsius and zero degrees Celsius for your freezer. “Don’t cool your house with a fridge.
Also fit its doors tightly, and do not open them unnecessarily. Otherwise, each time the door is opened, the temperature drops, thus more heat used,†she adds, “fridges with 200-700 watts consume about 12.9% of your income.â€
Boiling water: heating water consumes about 11% of electricity. Experts say things like bathing with warm water should not be a must-do this takes up more heat. “Use a shower instead of a bath because it uses less of the amount of hot water needed,†they say.
Ray of hope
Sebbowa says the Government will release sh70b to subsidise power costs and get an additional $50m from the World Bank to further subsidise consumers over the same period over the next 12 months.
He says the government will also continue waiving import tax on diesel for thermal generation as it plans to construct Bujagali and Karuma hydropower stations.
According to the ministry of Energy’s 27-paged plan for meeting Uganda’s electricity supply needs in the short, medium and long terms, arrangements are underway to procure at least one million energy-saving bulbs, which will be sold to electricity users at subsidised rates.
It is estimated that the exercise will cover 200,000 consumers, each getting five bulbs on average in the first phase (2006/2007).
The plan also says government intends to discuss with UMEME on how best to reduce energy losses.
Ends
FROM June 1, Uganda’s electricity tariffs will rise more than a third as the government seeks resources to tackle a looming power crisis and frequent blackouts.
Domestic consumers and small businesses will pay 37% more, while charges for heavy industries will go up by 58%, the Electricity Regulatory Authority (ERA) which regulates Uganda’s power sector, announced last week. The hike comes barely a year after ERA announced a 24% increase in power rates in January.
Under the new rates, domestic consumption will be at an average sh298.2 per unit up from the previous sh216.9. Commercial consumption will on average cost sh286.8 per unit from sh208.3. Medium industries will have to pay sh261.5 per unit from sh182.8. Large industries will pay sh120.8 per unit up from sh73.6, while street lighting will be at sh282.8 up from sh205.3.
What is the intention?
Frank Sebbowa, the chief executive officer of ERA, says the increment was prompted by the high cost of thermal electricity generation. The government says it cannot allocate enough money alone to fund the procurement of thermal power.
What do the high prices mean for local consumers?
With constant load-shedding, high fuel and food prices and now the high electricity tariffs, Uganda’s cost of living is undoubtedly worrying. If you have been paying sh50,000 per month, you would have to pay a third more –– about sh67,000. “But your bill might be the same like what you were previously paying, since there is load-shedding most of the time,†an official at ERA says on condition of anonymity.
It is estimated that a 100-watt light bulb consumes sh900 worth of electricity per month on average use.
The cost may not be significant, but, where there is a bulb or several lights left on, it starts to add up. Many people have started using bright flood (tube-like) lights for security purposes outside houses. These consume power worth about sh6,480 per month each.
Many families have their TVs on almost continually. If your television is on for eight hours everyday, you will add sh8,640 to your electricity bill at the end of the month.
Fans are touted as an excellent way to keep cool cheaply, but the truth is that a fan costs you sh3,456 per month. An electric oven costs sh5,616 per month, while the cooker is sh4,500 if one uses it one to two hours a day for a month. This could be an interesting comparison when you consider that gas perhaps costs, more less the same.
Experts say a refrigerator consumes electricity worth between sh1,260 and sh3,060 per month. Two main factors determine the cost –– a bigger fridge uses more electricity, experts also say if your fridge is more than 10 years old, it consumes electricity twice as much as a new one.
Let’s move on to the laundry room and precisely the washing machine. It consumes electricity worth about sh7,200 a month.
An electric hand dryer can consume electricity worth sh8,640 a month. Ironing your clothes takes up about sh720 when on for 20-30 minutes, per month, while the water heater, including the electrical kettle have typical monthly takes up to sh45,000.
Since February, consumers have had electricity for only 24 hours of every 48 hours, and businesses have been forced to rely on costly diesel generators to keep in production. Households still feel a bigger blow, as the cost of diesel is consequently charged on them through the prices they pay for the goods and services.
Many people are dismayed. “Should one have to rather do without things like ironing, refrigerators, cookers, heaters and later on maintaining your small business if you have any?†wonders a 40-year-old mother of five.
“It seems like we are paying more for more darkness, than for lighting,†points out another.
What can be done?
Even though the tariffs are set to increase soon, something can be done to avoid the big bill at the end of the month.
Cooking: James Baanabe, an official with the Energy Resources Department, says using improved charcoal stoves and firewood, could save about 40% of energy.
“Ensure that the sizes of the cooking pans match your cooking appliances to reduce unnecessary loss of heat. Cookers with hotplates are more efficient than coils,†he says.
Baanabe also recommends use of pressure cookers. “You cook at a high temperature and pressure, there by reducing the time needed to cook a meal,†he says.
Lighting: According to Simon Kalanzi, a senior energy officer in the ministry of energy, lighting accounts for more than 20% of electricity spending.
He advises that it is important to opt for fluorescent energy-savings bulbs.
“They give off less heat and use less energy compared to the regular bulbs,†he says. Kalanzi also says lights should be switched off when not needed.
Ironing: Beatrice Were Kabambo, a private energy researcher in Nakasero, says you should neatly fold your clothes after they have dried, to avoid creases. “Ironing creased clothes take about 11.4% more of energy, because you would be struggling to remove the little folds,†she says.
A colour TV of 55-90 watts and 15-watt fan each take about 3% of energy.
Kabambo advises that they should not be left on the whole day.
Appliances: According to ERD, one should not leave electric appliances, such as cookers, heaters, ovens on standby, because they would use about a quarter of the electricity.
“These appliances may draw the power, even when you are not using them, but are not removed from the main switch,†they say.
Refrigerators: Kabambo says you need to set your refrigerator thermostat at 40 degrees Celsius and zero degrees Celsius for your freezer. “Don’t cool your house with a fridge.
Also fit its doors tightly, and do not open them unnecessarily. Otherwise, each time the door is opened, the temperature drops, thus more heat used,†she adds, “fridges with 200-700 watts consume about 12.9% of your income.â€
Boiling water: heating water consumes about 11% of electricity. Experts say things like bathing with warm water should not be a must-do this takes up more heat. “Use a shower instead of a bath because it uses less of the amount of hot water needed,†they say.
Ray of hope
Sebbowa says the Government will release sh70b to subsidise power costs and get an additional $50m from the World Bank to further subsidise consumers over the same period over the next 12 months.
He says the government will also continue waiving import tax on diesel for thermal generation as it plans to construct Bujagali and Karuma hydropower stations.
According to the ministry of Energy’s 27-paged plan for meeting Uganda’s electricity supply needs in the short, medium and long terms, arrangements are underway to procure at least one million energy-saving bulbs, which will be sold to electricity users at subsidised rates.
It is estimated that the exercise will cover 200,000 consumers, each getting five bulbs on average in the first phase (2006/2007).
The plan also says government intends to discuss with UMEME on how best to reduce energy losses.
Ends