ERA reduces power tariffs


Uganda Electricity Regulatory Authority has announced quarter three [July-September 2016] electricity end user tariffs with a reduction, implying that electricity consumers in all categories will pay less for electricity.

As per the new tariff schedule, domestic consumers will pay Shs 626.0 per unit from Shs 640.2.

Commercial consumers will pay Shs 566.9 from Shs578 while Medium industrial consumers will pay Shs524.7 from Shs 536.2.

Large industrial consumers will pay Shs349.5 from Shs 361.1 and Street Lights will be charged Shs 608.0 from Shs 619.5.

ERA, pursuant to the provisions of Section 10 of the Electricity Act, 1999, (Chapter 145 Laws of Uganda), approved the applicable Tariff Adjustment Factors to be applied by Umeme Limited for the supply of electrical energy for the third quarter of 2016 in accordance with the Quarterly Tariff Adjustment Methodology.

The Quarterly Tariff Adjustment Methodology provides for adjustment of the annual base tariffs in line with changes in inflation, foreign exchange rate and fuel prices.

Inflation Adjustment Factor (IRAF), the rebased Core Consumer Price Index (CPI) increased from 152.29 in the Base Period to 156.41 in the month of May 2016 as published by the Uganda Bureau of Statistics.

The United States Producer Price Index (PPI) also increased from 193.2 in the Base Period to 194.8 in the month of May 2016 as published by the United States Bureau of Labour Statistics.

The resultant effect is a positive Inflation Adjustment Factor of USh. 1.8/kWh for domestic consumers, USh. 1.5/kWh for commercial consumers, USh. 1.5/kWh for medium industrial consumers, USh. 0.8/kWh for large industrial consumers and USh. 1.6/kWh for street lighting.

Exchange Rate Adjustment Factor (FERFAF)-the Uganda Shilling depreciated by 0.22 percent against the United States Dollar from Shs 3,357.1/USD in the Base Period to Shs 3,364.5/USD as at the end of May 2016.

The exchange rate is the mid-rate of the Uganda Shilling against the United States Dollar as published by Bank of Uganda on 31st May 2016.

Fuel Adjustment Factor of USh 1.0/kWh for domestic consumers, USh 0.8/kWh for commercial consumers, USh 0.8/kWh for medium industrial consumers, USh 0.8/kWh for large industrial consumers and USh 0.8/kWh for street lighting, among others.

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