New Vision (Kampala)

Uganda: No Change in Power Prices

Kampala — ELECTRICITY prices will not be changed for the next three months until the next power tariffs review in early 2009.

"We recognise the need for our industries and commercial enterprises to operate competitively," Daudi Migereko, the energy minister, said, adding that the Government had taken the necessary steps to cushion consumers.

He, however, said the public should note that the emergency power supply measures instituted by the Government were costly.

These measures include installation of two thermal power plants. Power prices are reviewed quarterly by the Electricity Regulatory Authority (ERA) as mandated by the Electricity Act (Cap 145).

The reviews consider changes in consumer price index, foreign exchange rates and fuel prices.

Presently, domestic consumers pay sh426.1 per unit, commercial users sh398.8, while small-scale industries sh360.7.

Large scale industries pay sh187.2 and street lights managers sh403.

Also, domestic and commercial consumers pay sh2,000, while small and large scale industries pay sh20,000 and sh30,000 respectively as servive fee monthly.

Uganda has the highest power tariffs in the region.

This coupled with insufficient and unreliable power, renders her goods less competitive.

The minister added that the Government provides substantial subsidies towards the cost of thermal electricity.

"We are in the process of replacing the light diesel thermal power plants with those using heavy fuel oil (HFO)," he said.

"The 50 MW HFO oil thermal power plant installed at Namanve commenced operations in September 2008."

Migereko said a number of renewable energy projects (small hydropower and modern) are at different stages of development and would be ready by 2009.

He said energy efficiency programmes are also being intensified to create awareness among electricity consumers to use electricity in an economical manner.

"Efforts to access cheaper sources of electricity are continuing. Our ultimate aim is to make electricity affordable to the people of Uganda," he said.

Due to the various interventions aimed at increasing generation capacity, the minister reported that day-time load-shedding has been eliminated and also reduced the evening peak load shedding.

"Government is committed to ensuring that the power supply situation continues to improve," he promised.

"Electricity consumers are called upon to play their role of efficient utilisation of the electricity, pay their bills and also cooperate with Umeme to fight rampant power theft and vandalism."

He said this will help to bring down the electricity supply rates.

"I assure Ugandans that the power sector is now on a steady path to recovery," he said.

"I appeal to you all to cooperate with the Government and the utility companies to eliminate the vices of power and electrical equipment thefts, which substantially contribute to the cost of providing electricity supply services."


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