Excess electricity responsible for slight reduction in Q4 power prices

Excess electricity responsible for slight reduction in Q4 power prices

After recording their first increase of the year in the third quarter, power prices will fall by a small margin in the final three months of 2018 due to an energy generation excess, according to the regulator.

Extra large industries and large industries received the biggest reduction in electricity tariffs from the Electricity Regulatory Authority’s tariff adjustment for October to the end of December. For extra large industries, the lower tariff includes benefits from the debt refinancing of the Bujagali Dam , concluded earlier this year, which reflect in a lower exchange rate factor.

The cost of a unit of electricity supplied by Umeme Limited has been reduced by 0.2% from the third quarter, or Shs1.6, for residential houses, small shops, and kiosks, otherwise categorised as domestic consumers. Still, the first 15 units purchased each month by consumers in this category are priced at a subsidised rate of Shs250 each aimed at making power affordable.

The tariff for commercial consumers and medium industrial consumers fell by a similar margin, Shs0.9, from the third quarter to Shs686.1 and Shs614.4 per unit, respectively.

Large industries and extra large industries also saw their retail tariff falling at a similar rate of 0.5% from the previous quarter to Shs382 and Shs312.5, respectively. Additionally, a unit of power for street lighting will cost Shs752.2 in the fourth quarter, a 0.1% decline.

The tariffs apply only to customers supplied by Umeme Limited, by far the country’s largest electricity distributor.

Related: Weak shilling drives rise in Q3 energy prices, but extra-large industries get relief from Bujagali refinancing

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