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 shs250 for the first 15 units under the lifeline tariff and thereafter pay shs747.5 for the next units purchased, a reduction from shs750.9 in the previous quarters.
Commercial consumers will pay Shs616.6 from Shs639.8, medium industrial consumers Shs 526.9 from Shs556.0, large industrial consumers – Shs355.0 from Shs361.0, extra-large consumers –Shs300.2 from Shs301.7, while the tariff for street lighting has been maintained at Shs370.0.
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 ERA, 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 Shs23.2 per Unit and S29.
“1 per unit of electricity consumed for the two (2) consumer categories, respectively.” Eng. Waako noted further adding 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 factors such 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.
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 is also a another factor.
The new tariffs 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.
In line with the quarterly tariff adjustment methodology that was approved by ERA in 2014, the authority sets out an annual base tariff at the beginning of each calendar year.
The base tariff is adjusted by ERA on a quarterly basis to provide for changes in the Macroeconomic factors, namely: the consumer price index, the exchange rate of the Uganda Shilling against the United States Dollar,