Power tariffs to remain constant
ELECTRICITY prices will not be increased during the next three months until another review is carried out.
By Ibrahim Kasita
ELECTRICITY prices will not be increased during the next three months until another review is carried out.
This follows the Electricity Regulatory Authority’s (ERA) decision to keep the tariffs constant despite an application by the various stakeholders to raise the price due to inflation and the fluctuating foreign exchange rate.
UMEME, the Uganda Electricity Transmission Company (UETCL) and Eskom had applied for the tariff adjustments.
“The regulator received the applications, analysed them, made a decision and passed them to the Minister of Energy to announce them to the public as per the Government’s guidance,†Frank Sebbowa, the ERA chief executive officer, said.
“The decision at the time being is to absorb all the adjustments through government subsidies. The end-user tariffs are remaining constant in the medium-term for main grid consumers only (UMEME),†he said.
However, Sebbowa refused to divulge the proposed increments saying: “We have already made the decision and it is with the minister.â€
“Let us leave issues related to tariffs to the regulator,†Robert Kisubi UMEME’s communication manager said.
Eriasi Kiyemba, the UETCL managing director, confirmed applying for the tariff adjustments.
“I communicated to the regulator about my revenue requirements and investment programmes.â€
“I am investing heavily in transformers, power lines and paying high salaries to staff. So we have to adjust accordingly.â€
Kiyemba stressed that the adjustments would not affect the end-user power tariffs “since the Government would subsidise the cost.â€
Domestic consumers pay sh426.1 per unit, commercial users sh398.8, while small-scale industries sh360.7.
Large scale industries pay sh187.2, while street lights managers sh403. Also, domestic and commercial consumers pay sh2,000, while small and large scale industries part with sh20,000 and
sh30,000 respectively per month.
UMEME applies for power tariff adjustments with an aim of “recovering revenue, getting a return on investments and covering power losses.â€
The firm is concentrating on reducing energy losses as directed by the energy ministry and many power thieves have been disconnected and fined.
However, the West Nile Rural Electricity Company (WENRECO) has increased the off-grid power prices by 40%.
A unit of electricity for domestic consumers will cost sh353 from sh273, while commercial users will part with sh404 from sh313.
The monthly service fee was increased to sh13,573 from sh7,917 for domestic consumers and to sh13,520 from sh21,092 for commercial clients.
The tariffs were increased due to “fuel supply shortage, which ensured the use of combination of heavy-fuel oil and diesel for power generation procured at a high price.â€
Ugandans are suffering from the highest power tariffs in the region coupled with insufficient and unreliable power, rendering her goods uncompetitive.
ELECTRICITY prices will not be increased during the next three months until another review is carried out.
This follows the Electricity Regulatory Authority’s (ERA) decision to keep the tariffs constant despite an application by the various stakeholders to raise the price due to inflation and the fluctuating foreign exchange rate.
UMEME, the Uganda Electricity Transmission Company (UETCL) and Eskom had applied for the tariff adjustments.
“The regulator received the applications, analysed them, made a decision and passed them to the Minister of Energy to announce them to the public as per the Government’s guidance,†Frank Sebbowa, the ERA chief executive officer, said.
“The decision at the time being is to absorb all the adjustments through government subsidies. The end-user tariffs are remaining constant in the medium-term for main grid consumers only (UMEME),†he said.
However, Sebbowa refused to divulge the proposed increments saying: “We have already made the decision and it is with the minister.â€
“Let us leave issues related to tariffs to the regulator,†Robert Kisubi UMEME’s communication manager said.
Eriasi Kiyemba, the UETCL managing director, confirmed applying for the tariff adjustments.
“I communicated to the regulator about my revenue requirements and investment programmes.â€
“I am investing heavily in transformers, power lines and paying high salaries to staff. So we have to adjust accordingly.â€
Kiyemba stressed that the adjustments would not affect the end-user power tariffs “since the Government would subsidise the cost.â€
Domestic consumers pay sh426.1 per unit, commercial users sh398.8, while small-scale industries sh360.7.
Large scale industries pay sh187.2, while street lights managers sh403. Also, domestic and commercial consumers pay sh2,000, while small and large scale industries part with sh20,000 and
sh30,000 respectively per month.
UMEME applies for power tariff adjustments with an aim of “recovering revenue, getting a return on investments and covering power losses.â€
The firm is concentrating on reducing energy losses as directed by the energy ministry and many power thieves have been disconnected and fined.
However, the West Nile Rural Electricity Company (WENRECO) has increased the off-grid power prices by 40%.
A unit of electricity for domestic consumers will cost sh353 from sh273, while commercial users will part with sh404 from sh313.
The monthly service fee was increased to sh13,573 from sh7,917 for domestic consumers and to sh13,520 from sh21,092 for commercial clients.
The tariffs were increased due to “fuel supply shortage, which ensured the use of combination of heavy-fuel oil and diesel for power generation procured at a high price.â€
Ugandans are suffering from the highest power tariffs in the region coupled with insufficient and unreliable power, rendering her goods uncompetitive.