ERA announces drop in electricity tariffs

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ERA announces drop in electricity tariffs
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Electricity Regulatory Authority has announced that the country’s power tariffs have reduced by 1.6% on average  for the next three months.

The development according to Dr. Sarah Kanaabi Wasagali, the chairperson of ERA means that the tariff on average will lower from shs 493.6 per unit or kilowatt hour (kWh)  in the last quarter of 2023 to shs485.9 per unit or kilowatt hour (kWh) in the first quarter of the new year 2024.

Dr.Wasagali explained that commercial users will their tariff falling by 1.8% from shs611.8  per unit or kilowatt hour (kWh) to shs600.6 per unit or kilowatt hour (kWh) whereas medium industries will see the tariff drop by 2.8% to shs448.7 per unit or kilowatt hour (kWh).

On the other side,  large industries’ power tariff drops by 1.4% to shs379.2 per unit or kilowatt hour , extra large industries tariffs drop by 1.4% to shs320.6 per unit or kilowatt hour while the tariff for street lights will stay at shs370 per unit or kilowatt hour.

Meanwhile, for domestic consumers, who include residential houses, small shops, and kiosks, will continue to be charged Shs250 per unit for the first 15 units also known as lifeline  they consume every month.

The lifeline rate is intended to subsidise low-income consumers.

For domestic consumers above the lifeline, they will get a 1.0% reduction to shs797.3 per unit or kilowatt hour .

Dr.Wasagali said the average annual based tariff reduction compared to the quarter four 2023 tariff stands at 1.6% equivalent to a saving of shs 40.321billion to the electricity consumer.

“A number of assumptions were taken into consideration while determining the new electricity tariffs.  Karuma Hydro Power Plant is expected to be commissioned in the year 2024, the ongoing preparatory activities to ensure smooth transition of the distribution network to the new operator at the end of the Umeme Limited concession in March 2025 and provisions of reasonable and justified capital requirements for investments in the electricity supply network across the Value chain of; generation, transmission, distribution, sale, export and import were considered,” the ERA boss said.

Commenting about the reduction in tariffs, Minister for Energy, Dr.Ruth Nankabirwa said the shs40.32billion is a huge sum of a burden saved on the consumer.

“I am happy to note the tariff has been reduced and it means we will see the cost of goods produced being affordable. The 1.6%  reduction is equivalent of shs40 billion. It is something good .Whenever we announce a reduction in tariff, it means we have lost money in a good way but we will see many people use electricity. We want to move away from using charcoal to using electricity,” Nankabirwa said.

“E-cooking is something we must do as we are mandated by the world to move away from cooking using firewood to clean cooking. This reduction in tariffs is helping us move towards achieving that.”

 

 

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