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Uganda: Govt reduces power tariffs for three months

TagsElectricity tariffs, Energy Access, Regulatory and Governance

The Electricity Regulatory Authority (ERA) has reduced power tariffs for July until September across different consumer categories.

ERA in a statement issued on Friday attributed the reduction to the consumer price index, the appreciation of Uganda Shilling against the dollar by 3.3 per cent, the fall in fuel prices and the energy generation mix.

According to the new tariffs, domestic consumers will pay Shs250 for the first 15 units under the lifeline tariff and thereafter, pay Shs747.5 for the next units purchased, a reduction from Shs750.9 in the previous quarter.

This will now see domestic power consumers pay Shs3.4 less per unit in the next quarter.

But the biggest beneficiaries of this reduction are the commercial and medium industrialists, whose tariffs were reduced by Shs23 and Shs29.1, respectively.

"The commercial consumers and medium industrial consumers are the biggest direct beneficiaries of the reduction in tariffs applicable for the period July to September 2021, with a reduction as much as Shs23.2 per unit and Shs29.1 per unit of electricity consumed for the two consumer categories respectively" ERA chief executive officer Eng Ziria Tibalwa Waako said in a statement.

This will now see the commercial consumers pay Shs616 from Shs639.8, medium consumers will now pay Shs526.9 from Shs556, while extra-large consumers will now pay Shs300.2 from Shs301.7 per unit.

In justifying the significant reduction of power tariffs for the two categories, ERA said the move was deliberate to support the small and medium sized businesses to recover from the adverse effects of Covid-19 pandemic.

ERA also clarified that the new power tariffs will apply to all electricity consumers under Umeme based on meter readings and YAKA purchases taken in the period of July to September this year.