ERA increases electricity tariffs

KAMPALA

The electricity regulator, Electricity Regulatory Authority (ERA) has increased power tariffs for domestic consumers from Shs517.3 to Shs518 a unit, citing changes in prices and the shilling losing strength against the dollar.

The new tariff by one shilling (0.7 per cent)harged by power distributor, Umeme, came into immediate effect from July 1 and will be reflected in customers’ bills on the postpaid system. ERA early this year introduced the Quarterly Tariff Adjustment (QTA) basing on the monthly measure of changes in the prices paid by consumers
(Consumer Price Index), exchange rate and fuel adjustment.

Ms Diana Nambi, the Senior Consumer Affairs officer at ERA, said for consumers on the prepaid system, the change will be reflected on their bills once it has been announced in the press and other outlets.
“It’s basically based on those three factors as provided by the Uganda Bureau of Statistics (Ubos) which define the economic condition.”
ERA also announced a slight increase in power tariffs for commercial consumers from Shs471.1 to Shs471.8. Tariffs for medium industrial
consumers from Shs448.1 to Shs449.4.Tariffs for large scale industrial consumers increased from Shs307.1 to
Shs307.8.

Reviewed
The periodical end-user tariffs are a culmination of a tariff review process that start with the submission of tariff adjustment applications by the players, Umeme, generators-Eskom and Uganda Electricity
Transmission Company Limited (UETCL)-the transmitter at the beginning of
every year.

Early this year, Umeme had proposed that the end-user tariffs for domestic consumers be increased by 9.95 per cent, citing the need to invest in expanding its network and also meet the power purchase costs, which was rejected.

The ERA officials added that, the applications are aertised, calling upon the public for comments and opinions on the proposed tariffs.

According to UBOs, the consumer price index increased from 208.2 to 208.79 in May while the Ugandan Shilling depreciated by 1.32 per cent against the US Dollar from Shs2,524.5 in the period under review to Shs2,557.7 in the same month as indicated by the Bank of Uganda.
The resultant effect is the positive adjustment in the price of power per kilowatt hour. The next adjustment will be announced in September.

musisif@ug.nationmedia.com

SOURCE: Daily Monitor

Leave a Reply

Releated

A Post-Contagion Escape to the Countryside

Italian author Giovanni Boccaccio’s classic book “The Decameron,” completed by the author shortly after the 14th century Black Death, seven young women and three young men escape the bubonic plague and seclude themselves in a countryside villa outside Florence. There they narrate a hundred tales to occupy their self-quarantine. The book concludes with the group […]

Indian Capital Makes a Gradual, Uneasy Comeback

NEW DELHI – Signs are being spruced up and prayers performed as shops in the Indian capital open their shutters after two months with the gradual easing of a stringent lockdown. Markets were allowed to reopen recently after the government signaled economic activity must resume, even as the fight against the COVID -19 pandemic continues. […]