Minister for Energy and Mineral Development Hon. Ruth Nankabirwa Ssentamu addressing reporters at Uganda Media Centre
Ugandans have a case to smile at least in the New Year as government announces a cut in the electricity tariffs for the first quarter, 2024 by 1.6% on average. This is aimed at encouraging an increase in demand for Hydro Electricity Power by both domestic and commercial users and this will accelerate the growth of demand by 9.53%.
The cut in tariffs was announced by the Uganda Electricity Regulatory Authority Board chairperson Dr. Sarah Wasagali Kanaabi who said that this was motivated by assumptions for instance Karuma Hydro Power Plant which is yet to be commissioned early this year, the provision of reasonable and justified Capital requirement for investment and provision for cost requirements to facilitate the transition of the main distribution concession from UMEME limited to Uganda Electricity distribution Company limited among others.
While addressing the reporters at Uganda Media Centre in Kampala, Dr. Wasagali revealed that the new tariffs were arrived at after thorough consultations with the stake holders during the Tariff Review Process and basing on the assumptions as mentioned above.
In the new tariffs issued, a domestic user for lighting and ironing will have to pay for the 1st -15th UGX 250 per unit an indication that the cost for the first 15 units remained the same while from 16th– 80th units, tariffs have reduced from 805 to 797.3 per unit representing 1% reduction and for commercial users there is a reduction of 1.8% from 611.8 to 600.6 per unit.
Dr. Wasagali also said that in an effort to encourage use of Hydro Electric Power in domestic cooking, the Tariffs will be Ushs 412 per unit between 81kwh and 150kwh per month. The institutional Cooking Tariff is Ush 451 per unit and this is aimed at supporting over 500 institutions such as schools, hospitals and prisons.
“ The average reduction of 1.6% will help to save Ush 40.321 billion to the electricity consumers and will as well accelerate economic growth and development to the economy.’’ Dr. Wasagali said.
She also said that the Authority is focusing on commercial and medium industries with a tariff reduction of 1.8% and 2.8% respectively geared towards supporting the small and medium scale industries.
The Minister for Energy and Mineral Development Dr. Ruth Nankabirwa who also addressed reporter in the same press conference, out lined the achievement of the year 2023 were she revealed that her sector has been able to encourage the private players to come on board to support government in power generation through the revised policy frame work.
She also said that the cost of no-pole new customer connection reduced from UGX 720,882 to UGX 470,000 through a subsidy of UGX 250,883 and that government provided a credit line of UGX 270,000 per new connection for those consumers who are unable to pay a lump sum of UGX 470,000 and this is accessible through Uganda Development Bank which is to be paid in period of eight year but this works for people who have paid down payment of 200,000.
By George Bukenya