The ministry of Energy and Mineral Development (MEMD) through the Electricity Regulatory Authority (ERA) has approved new Electricity End-User Tariffs to be charged by Umeme Limited for the supply of electricity.
This comes after the minister for Energy and Mineral Development (MEMD) Hon. Ruth Nankabirwa vowed to work with technical team headed by Permanent Secretary Robert Kasande to ensure that electricity tariffs are reduced so that electricity is made affordable for all Ugandans.
According to the media statement from Electricity Regulatory Authority (ERA), “domestic consumers will pay UGX 250 for the first 15 Units under the Lifeline Tariff and thereafter pay UGX 747.5 for the next Units purchased, a reduction from UGX 750.9 in the previous quarters.”
It further states that commercial consumers will pay UGX 616.6 from UGX 639.8, Medium Industrial Consumers – UGX 526.9 from UGX 556.0, Large Industrial Consumers – UGX 355.0 from UGX 361.0, Extra Large Consumers – UGX 300.2 from UGX 301.7, while the tariff for street lighting has been maintained at UGX 370.0.
The approved Electricity End-User Tariffs represent a Weighted Average Reduction of 2 per cent, relative to the tariffs of the second quarter of 2021.
According to the Chief Executive Officer of the Electricity Regulatory Authority, Eng. Ziria Tibalwa Waako, “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 UGX 23.2 per Unit and UGX 29.1 per Unit of electricity consumed for the two consumer categories, respectively.”
Eng. Waako explains further that “the reduction in the tariffs of these two categories is a deliberate effort by the Electricity Regulatory Authority to support the Small and Medium-sized businesses to recover from the adverse effects of the COVID-19 pandemic, thereby contributing to the recovery of the economy.”
The new End-User Tariffs were attributed to the following factors, appreciation of the Uganda Shilling against the United States Dollar, increment in the international fuel prices, the total quarterly energy expected to be purchased by UETCL, which is 1,220.32 GWh, and the water release at the Nalubaale-Kiira Generation Complex, which is projected at 1,000 cubic meters per second (cumecs) for the third quarter of 2021, which translates into an Average Generation Capacity of 172.7 MW from Nalubaale-Kiira and 178.8 MW from Bujagali Energy Limited.
The new tariffs will apply to all electricity consumer bills raised by Umeme Limited, based on Meter Readings and Yaka purchases taken in the period July to September 2021.
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