ERA increases electricity tariffs


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

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.

SOURCE: Daily Monitor

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