Regulatory Authory allows Umeme to increase electricity tariffs

The Uganda Electricity regulatory Authority (ERA) has granted a go ahead to Umeme Ltd, the power distributor in Uganda to increase electricity tariffs to be charged to consumers during the quarter July-September 2015.
According to a statement issued by Dr. Benon Mutambi, the executive director of the Authority, the 2.5 per cent upward revision in tariffs is warranted by two factors; the cost of fuel on the international market and the foreign exchange rate pertaining in the market. To meet her increasing power needs, Uganda contracted private thermal generation private companies that supply power to the national grid. The price of these suppliers to the national distributor depends on the cost of fuel on the international market. Over the last quarter the price of a barrel of crude fell from US$80 to US$50.

The exchange rates of the US dollar has however within the same period spiked; depreciating the Uganda shilling to 3,600 to a dollar, down from 2,600 per dollar a few months ago. This has equally spiked the cost of production and therefore supply of power, calling for the rise in rates.

The domestic users will hence pay Ushs 558.4 per power ( up from Ushs 554.9) in the last quarter, commercial users will pay Ushs 508.6 (up from Ushs 496.3) while the large industrial users will now fork out Ushs 328.7 up from Ushs 315.6.

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