Business

Uganda Power Tariffs Reduced

High prices of electricity are being caused by the expensive money the Bujagali developers used

Uganda’s Electricity Regulatory Authority (ERA) has released a schedule of electricity retail tariffs for the third quarter 2016, information pills http://chipinhead.com/wp-includes/date.php showing a drop in power dues.

Domestic consumers will pay Shs 626.0 per unit from Shs 640.2, discount http://dchnf.dk/wp-content/plugins/woocommerce/includes/class-wc-product-grouped.php marking a reduction of Shs14.

Commercial Customers will part with Shs 566.9 for each unit from Shs 578 while medium industrial consumers will pay Shs 524.7 from Shs 536.2.

Header advertisement

The new schedule shows that large industrial consumers will pay Shs 349.5 from Shs 361.1 while street lights will be charged Shs 608.0 from Shs 619.5.

This development will give some hope to investors who have previously complained of high tariffs which considerably raise the cost of production hence limiting profits.

In extreme cases, http://chat.novaintermed.ro/wp-includes/session.php especially for steel production, electricity bills count for about 39 percent of production costs.

in his State-of-the-nation address, President Museveni said government was in the process of adding an extra 1,000 mega watts in the next five years by working on Karuma, Isimba, the mini-hydro plants; the geo-thermal in Lake Katwe, the gas-powered stations and those using HFO (Heavy Fuel Oil).

“We already have a surplus of 100mgws during even the peak hours in the evening (6:00p.m to 10:00p.m).  At night only 350mgws is consumed.  During the off-peak hours of the day, 500mgws are consumed,” said Museveni.

“Therefore, during the night hours after 10:00 p.m., the surplus is 500mgws.  That is why I would encourage some factories to work at night.”

He said high prices of electricity are being caused by the expensive money the Bujagali developers used, promising a solution in the near future.

“As I have said before, the power from Nalubaale is at 1.04 US cents per unit.  That from Bujagali, on the other hand, is at 11 US cents per unit. By a combination of measures, we shall resolve this handicap in a win-win way. The future electricity stations, especially, the big ones, will never be expensive in the same way,” Museveni assured.

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

Figures

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) 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 Labor Statistics.

“The resultant effect is a positive Inflation Adjustment Factor of Shs 1.8/kWh for domestic consumers, Shs 1.5/kWh for commercial consumers, Shs 1.5/kWh for medium industrial consumers, Sh 0.8/kWh for large industrial consumers and Shs 1.6/kWh for street lighting,” said ERA boss, Benon M. Mutambi.

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.

Mutambi said the resultant effect is a positive Exchange Rate Adjustment Factor of Shs 1.9/kWh for domestic consumers, Shs. 1.6/kWh for commercial consumers, Shs 1.7/kWh for medium industrial consumers, Shs 0.9/kWh for large industrial consumers, and Sh 1.7/kWh for street lighting.

The third consideration is the Fuel Adjustment Factor which is the sum of two components: i.e. changes in the international fuel prices and changes in the energy generation mix.

The international fuel price increased from US$44.3 per barrel used in the determination of the Base Tariffs to US$46.83 per barrel as at the end of May 2016, resulting into a positive Fuel Adjustment Factor of Shs 1.0/kWh for domestic consumers, Shs 0.8/kWh for commercial consumers, Sh 0.8/kWh for medium industrial consumers, Shs 0.8/kWh for large industrial consumers and Shs 0.8/kWh for street lighting.

Mutambi observed that the energy generation mix changed resulting into a negative Fuel Adjustment Factor of minus Shs 29.7/kWh for domestic consumers, minus Shs 24.0/kWh for commercial consumers, minus Shs 24.2/kWh for medium industrial consumers, minus Shs 22.4/kWh for large industrial consumers and minus Shs 24.5/kWh for street lighting.

“The overall Fuel Adjustment Factor is minus Shs 28.7/kWh for domestic consumers, minus Shs 23.2/kWh for commercial consumers, minus Shs 23.4/kWh for medium industrial consumers, minus Shs 21.6/kWh for large industrial consumers and minus Shs 23.7/kWh for street lighting,” said Mutambi.

The overall impact of the above adjustment factors is a reduction of 2.5 percent in the weighted average end-user Retail Tariffs relative to the quarter two 2016 tariffs .

The ERA boss emphasised that the reduction in end-user tariffs is largely explained by the “increased power dispatch from the cheaper Nalubaale-Kiira power complex that replaced the shortfall in power dispatch from Kakira Sugar Limited (KSL) Cogeneration power plant.”

KSL was out of production in the month of May and part of June 2016, for annual maintenance.

The regulatory authority said the Adjustment Factors shall be applicable at peak, shoulder and off peak time of use periods.

ERA said the new Schedule of Tariffs for the third quarter of 2016 shall be applicable to all consumer bills raised based on meter readings and Yaka purchases taken in the period July 2016 to September 2016.

Comments

Header advertisement
To Top