ERA reduces power tariffs by 0.8%

KAMPALA: Electricity consumers both domestic and commercial can exhale a sigh of relief for some time now on end-user tariffs but the status quo will remain as long as the shilling continues to appreciate and global fuel prices low.

The regulator, Electricity Regulatory Authority (ERA) yesterday announced a ‘slight” reduction in tariffs by Shs4 (o.8 per cent) from Shs524.5 to Shs520.4 for domestic consumers and Shs487.6 for commercial consumers to Shs474.4.

Announcing the uncharacteristic development, the ERA chairman Richard Santo Apire, said the approved tariffs which take effect on tomorrow (Thursday) shall be subject to a quarterly adjustment determined in accordance with an approved methodology.

“These new tariffs are subject to change owing to changes in global fuel prices which affect UETCL’ costs of purchasing power from IPPs with fossil-fired electricity generation, and foreign exchange regime which affects all companies involved in supplying power,” he added.

Mr Apire, remarked that the 2014 end-user tariffs are a culimination of a tariff review process that started with the submission of applications by Umeme, Eskom, UETCL, and UEDCL.

 Monopoly power distributor, Umeme, had proposed that the end-user tariffs for domestic consumers be increased by 9.95 per cent in 2014, citing the need to invest in expanding its network and also meet the power purchase costs.

The ERA officials maintained, the applications were advertised calling upon the public for comments and objects, but not representations were received.

In another related twist the price of the first 15 units increased from Shs100 to Shs150, which officials has not been revised for a number of years but with the absence of a subsidy an increase was inevitable.

Average electricity consumption in kilowatts per hour varies from consumer to another.

The government also expects to spend Shs59.5 billion on thermal plants throughout the year to supplement the 516MW hydro-electric generated capacity.

The junior minister for energy, Peter Lokeris, further noted that, tariffs will gradually drop when Karuma and Isimba hydro-projects come on board.