Electricity Regulatory Authority keeps power rates unchanged for Q4

On Wednesday, October 4, Eng. Ziria Tibalwa Waako, the CEO of the Authority, announced that the tariffs for the fourth quarter, spanning from October to December 2023, will remain at their current levels.

For residential consumers, the lifeline units (the first 15 units of the month) will remain priced at Shs 250, while units ranging from 16 to 80 will continue to cost Shs 805. Units from 81 to 150 will retain a price of Shs 412, and those exceeding 150 units will also remain at Shs 805.

Commercial users will continue to pay an average unit cost of Shs 611.8, while medium industrial consumers will see no change, with the average unit cost remaining at Shs 461.8.

Large industrial consumers will experience no rate adjustment either, with block 1 units costing Shs 384 and block 2 units costing Shs 367. Extra-large consumers will have no changes as well, with block 1 units priced at Shs 325 and block 2 units at Shs 296.2. The charge for street lighting remains steady at Shs 370.

Julius Wandera, the Director of Corporate and Customer Affairs at ERA, provided reasoning for the unchanged tariff. He noted a slight increase in electricity demand during the previous quarter, albeit falling slightly short of the initial year's projections.

However, Wandera anticipates an upturn in demand during the final quarter, driven by higher consumption during the festive season.

He stated, "Electricity demand is projected to grow at an annual rate of approximately 9.14% in 2023. The total energy purchased by UETCL is expected to rise from the 5,490.1 GWh projected for 2022 to 5,992.22 GWh in 2023."

Regarding the exchange rate's impact on power cost projections, Wandera pointed out that the Ugandan Shilling has appreciated against the United States Dollar, going from USH/USD 3,738.33 on November 30, 2022, to UGX/USD 3,719.04 as of August 31, 2023.

ERA regularly adjusts retail power tariffs every quarter, taking into account the prevailing economic conditions and incorporating feedback from key stakeholders such as UMEME, UEGCL, UETCL, and UEDCL.