The Chief Executive Officer of Electricity Regulatory Authority (ERA) Eng Ziria Tibalwa Waako has come out and explained why the cost of power for Manufacturers is lower compared to the cost of power for other categories of consumers.
Eng. Ziria says much as ERA appreciates all power consumers, the demand for power by Manufacturers stands at 70%.
When this News Site randomly studied two power tariffs schedules issued by the Electricity Regulatory Authority (ERA), those in the manufacturing industry are indeed charged relatively lower.
Under sections 10 and 75 of the Electricity Act 1999 as amended, ERA approves the schedule of electricity end-user tariffs to be charged by electricity energy suppliers. Among the suppliers includes Umeme Ltd and WENRECO.
For example in the billing period October-December or fourth quarter 2022 and in the billing period April-June 2022 or second quarter of 2022, it is indicated that the manufacturers have always enjoyed lower power tariffs compared to other categories of consumers particularly domestic users and commercial.
In the current quarter for example, domestic users are charged Shs250 for the first 15 units but this figure goes almost four times up when one consumes between 16-80units. A unit is charged at Shs820 although it comes down to Shs412 if one consumes beyond 81-150units and then goes up to 820 if one goes beyond 150units.
In the second quarter, the same category was charged Shs250 for the first 15 units while those between 16-80units paid Shs747.
As for commercial consumers, in the current quarter, a customer is charged Shs825 during peak hours, Shs414 during off peak and on average paying Shs637.7 per unit.
In the second quarter, the same category paid for Shs768 during peak hours, Shs356.9 off peak and on average Shs580.6 per unit.
In the current quarter, medium Industrial consumers are paying 652.9 during peak hours while off peak, they pay as low as Shs274.5 per unit. In the second quarter, this same category paid Shs609.7 during peak hours and Shs231.3 off peak.
Large industrialists are in this quarter paying Shs506 per unit during peak hours while off peak they are paying Shs264.6 per unit. The same category in the second quarter paid Shs472.5 (peak) and Shs231.1 off peak.
As for Extra large Industrial consumers, under the current quarter, they are being charged Shs424 (peak) and Shs243 off peak per unit. This same category enjoyed lower rates in the second quarter compared to others. They paid Shs395.7 (peak) and Shs214.7 off peak.
During last week’s Inaugural ESI Local Content Forum 2022 organised by Electricity Regulatory Authority (ERA) in collaboration with PPDA, UNBS and Uganda Manufacturers Association in Kampala, stakeholders wondered why ERA is charging lower rates when it comes to Manufacturers compared to other categories of consumers.
However, ERA Chief Executive Officer, Eng. Ziria Waako Tibalwa explained why the cost of power to Manufacturers is relatively low. Tibalwa explained that giving lower rates to Manufacturers stimulates growth as more industries will come on board.
Eng. Ziria said the perceived favoritism towards Manufacturers is also based on the fact that they utilize power to produce products that support other sectors of the economy.
“Giving Manufacturers power is good for economic development. They utilize power to produce products for other sectors. They use it for value addition and are also creating employment” she says.