ERA reduces electricity tariffs for third quarter of 2021

ERA reduces electricity tariffs for third quarter of 2021

Sh14b Nyakesi transformers (left), supplying reliable electricity to Hima and Simba cement plants (right) in Tororo (PHOTO/Courtesy). KAMPALA — 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 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.

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 (2) 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 are attributed to the following factors:

(i) Appreciation of the Uganda Shilling against the United States Dollar

In the Second Quarter of 2021, the Exchange Rate of the Uganda Shilling against the United States Dollar appreciated by 3.3%, from Ush 3,665.78/US$ as at 26th February 2021 to Ush 3,546.0 as at 31st May 2021. The Exchange Rate of the Uganda Shilling against the United States Dollar also appreciated by 4.1% from the Exchange Rate of Ush 3,699.17/US$ in November 2020, which was used to determine the Base Tariffs for the year 2021.

(ii) Increment in the International Fuel PricesThe International Fuel Price for crude oil for May 2021 was US$ 66.91 per […]

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