23 November 2012

Uganda: Power Companies Apply to Hike Tariffs

The Electricity Regulatory Authority (ERA) has received applications for tariff reviews from all major power companies, less than a year after the rates were raised by more than 40%.

"The review is based on the budgets of the power companies for the next year. They have to give justification before the rates are changed," said Julius Wandera, the ERA publicist.

He said the exercise is routine, adding that a decision to change tariffs can only be effected after a public hearing in December.

Eskom, UMEME and the Uganda Electricity Transmission Company Limited (UETCL) have sent proposals for new tariffs, citing expansion plans and refurbishment works of electricity substations.

"We intend to expand our network next year and our operational costs are likely to rise," said Kenneth Otim, the UETCL publicist.

Domestic consumers are paying sh828 per unit of electricity up from sh383.6 in 2011, while commercial premises are paying sh611 up from sh358.6. Large industries are paying sh522 up from sh184.8.

Wandera says this year's increment was to meet the costs after government subsidies were withdrawn.

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