ERA Reduces Electricity Unit by 2% to Shs 740

ERA Reduces Electricity Unit by 2% to Shs 740

ERA executive Director Ziria Tibalwa Waako The Electricity Regulatory Authority (ERA) has approved new Electricity End -User Tariffs to be charged by Umeme Limited for the supply of Electrical Energy in the Billing Period from July to September 2021.

The New Electricity End-User Tariffs indicate a remarkable reduction across Consumer Categories, with the exception of Street Lighting.

According to the New Tariffs, Domestic Consumers will pay UGX250 for the First 15 Units under the Lifeline Tariff and there after pay UGX747.5 for the next Units purchased; a reduction from UGX750.9 in the previous quarters.

Commercial Consumers will pay UGX16.6 from UGX639.8, Medium Industrial Consumers – UGX526.9 from UGX556.0, Large Industrial Consumers -UGX355.0 from UGX361.0, Extra Large Consumers – UGX300.2 from UGX301.7, while the Tariff for Street Lighting has been maintained at UGX370.0.

The approved Electricity End-User Tariffs represent a Weighted Average Reduction of 2% ,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 UGX23.2 per Unit and UGX29.1 per Unit of Electricity consumed for the Two (2) Consumer Categories respectively.

Eng. Waako explained 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 the recovery of the economy”.

The new End-User Tariffs are attributed to the following factors:

(i) Appreciation of the Uganda Shilling against the Dollar

In the second Quarter of 2021, the the exchange rate of the Uganda shilling against the Dollar appreciated by 3.3%,from UGX3,665.78 /US$ as at 26th February 2021 to Ush3,546.0 as at 31st May 2021.

The Exchange Rate of the Uganda Shilling against the Dollar also appreciated by 4.1% from the Exchange Rate of Ush3,699.17 /US$ in November 2020,which was used to determine the BaseTariffs for the year 2021.(ii)Increment in the International Fuel PricesThe International Fuel Price for crude oil for May 2021 was US$66.91 perBarrel, compared to US$40.08 per Barrel used in the determination of the Base Tariffs for 2021.This represents an increase in the International Fuel Prices by 66.9% from the Base Period.(iii) The Total Quarterly Energy expected to be purchased by UETCL, which […]

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