Uganda: 'Government to Reduce Power Tariffs After Karuma Starts Working'

2 November 2017

Kiryandongo — Large and small scale industrial electricity consumers in Uganda now have a reason to smile following a declaration by government to reduce electricity tariffs by half.

Speaking to journalists at the Karuma hydro power site last week, Uganda Electricity Generation Company Limited (UEGCL) corporate affairs manager Simon Kasyate said once Karuma and Isimba power projects are complete, government power tariffs will significantly reduce.

"Government plans to prioritise meeting Uganda's domestic and industrial electricity demands when the Karuma and Isimbapower plants get operational, the reduction will allow them save as profits the money they now use in paying extra bills for electricity," Mr Kasyate told reporters.

Mr Kasyate noted that many small and some large scale industries are failing to maintain business due to inflated power tariffs.

"Our belief is that for as long as power is deliberately made cheap, those who use it for domestic purposes will be able to afford it and those who use it for industrial purposes both small and big will be able to afford it and reap big profits," he noted.

He added that government had equally invested into several electricity power options including solar, nuclear and geothermal in order to ensure it meets its domestic and industrial electricity demands.

"We are not just talking about hydro power but we are thinking of an energy mix, solar is one of them, the Russians are here also doing prospects over nuclear energy, we also prospecting wind energy and geothermal in the hot springs of Western Uganda," Mr Kasyate added.

He denied claims that government was plotting to export electricity from Karuma to South Sudan and DR Congo.

"We cannot sell power to other countries when we have a lot of power gaps internally," he said, refuting earlier allegations.

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