Electricity Regulatory Authority (ERA) headed by CEO Eng. Ziria Waako Tibalwa has announced a reduction in power tariffs for the second quarter running from April to June 2023.
The 1% reduction in tariffs is to be enjoyed across all categories of consumers including domestic, commercial, medium, large and extra large consumers.
In the new tariffs, a unit for domestic users has been maintained at Shs250 for the first 15units (lifeline) but those who go beyond 16-80 units will pay a reduced tariff of Shs805 down from Shs808.9 in the ended first quarter. From 81-150 units, a domestic consumer will pay Shs412, the same amount as in the previous quarter while those who will go beyond 150 units will pay Shs805 per unit, down from Shs808.9 in the first quarter.
Commercial consumers will on average pay Shs611.8 in the new quarter down from Shs624.6 in the first quarter while during peak hours, they will pay Shs807.5 down from Shs820.3 per unit in the first quarter. This same category of consumers will pay Shs616.5 down from Shs628.3 during shoulder and Shs367.4 during off peak down from Shs380.2 in the last quarter.
Medium Industrial Consumers will pay Shs461.8 average down from Shs472.3 in the first quarter, Shs636.4 peak down from Shs646.9, Shs466.3 (shoulder) down from 476.8 and off peak Shs244.9 down from Shs255.4 in the first quarter per unit.
Large industrial consumers will be charged Shs384.4 (average) down from Shs386.3, peak Shs519.4 down from Shs521.3, shoulder Shs385.3 down from Shs387.2 and Shs243.6 off peak.
As for Extra large industrial consumers, ERA has set Shs325 charges per unit (average), Shs429.5 (peak), Shs326.6 (shoulder) and Shs233.3 per unit during off peak. This tariff is relatively lower compared to the first quarter where this category of consumers was charged Shs326.6 (average), 431.1 peak, Shs328.2 (shoulder) and Shs234.9 off peak.
The power regulator has also maintained streetlighting charges at Shs370 per unit.
Addressing the media at ERA head offices, ERA director for corporate and consumer affairs Julius Wandera, said the new tariffs represent a reduction of 1% compared to the first quarter which ran from January to March 2023.
He said the approved tariffs have been determined basing on changes in macroeconomic factors which includes international prices for fuel, exchange rate of Uganda shillings vs US dollar, core consumer price index (inflation), energy generation mix and costs approved by ERA.
For example according to Wandera, there was an appreciation of the Uganda shilling against the US dollar by 0.44% as of February 28 2023 compared to the exchange rate used in determining the first quarter. In determining the tariffs for first quarter, the dollar was selling at Shs3738.33 as at November 30 2022 but during the mid-rate published by Bank of Uganda as at February 28 2023, the dollar value had declined to Shs3721.83.
Wandera added that the international prices for fuel also declined between the base period and quarter two.
“When we have the Uganda shilling gain, it means we’re going to spend less. When it depreciates, it means you’re supposed to collect more shillings to pay for the dollar” Wandera said explaining that ERA does much of its transactions to be added on the infrastructure in dollars.