Home Business Uganda: Era Shifts Focus to Two Power Consumer Groups, Cuts Tariffs

Uganda: Era Shifts Focus to Two Power Consumer Groups, Cuts Tariffs

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The Electricity Regulatory Authority (ERA) has reduced tariff for two consumer categories twice in a row while maintaining all the rest for more than nine months.

ERA, the company mandated with setting the price of electricity supplied in the country, has released tariffs that determine the price of electricity sold by Umeme from April to June.

In the new tariff, commercial and medium industrialists will enjoy a slightly reduced cost.

Commercial users, who include small scale industries, fuel pumps and millers among others, will now pay Shs639.8 from Shs642.2, while medium industrialists will pay Shs556 per unit.

Medium industrialists had been paying Shs560.2 in January.

Domestic consumers, who include households, will continue paying a subsidised fee of Shs250 for the first 15 units every month before paying Shs750.9 as it was in January.

Large industrial consumers had also been maintained at Shs361 per unit, while extra-large industrial consumers pay Shs301.7 per unit.

Street lighting, a bill payable by Kampala Capital City Authority was also kept at Shs370 as it was in January.

Speaking to Daily Monitor yesterday, Mr Julius Wandera, the ERA director corporate and consumer affairs, said the move to reduce tariff for the two consumer categories is a deliberate effort to spur growth in those sectors.

“Previously the concentration of the regulator has been on the extra-large and large industrial consumers to try to help be competitive on the market but now the focus of the regulator going forward is on the commercial to get a favourable tariff to become competitive on both the local and regional market,” he said.