Power Regulator, the Electricity Regulatory Authority (ERA) has reduced the cost of electricity for 2023 by 1.2% on average.
The reduced costs are contained in the new tariff structure for Quarter 1 of 2023 (January to March 2023) which was presented to reporters by the ERA Board Chairperson, Sarah Wasagali Kannabi in Kampala on Friday.
The reduction cost of electricity has been determined on major assumptions that include; the Uganda shillings appreciated against the dollar from 3,810.74 shillings used in the determination of tariffs for Quarter 4 of 2022 (October to December) to 3,738.33 shillings on November 30, as published by Bank of Uganda.
ERA also took into consideration that with effect from April 2023, the Uganda Electricity Generation Company Limited (UEGCL) will assume the operations of Nalubaale and Kiira hydropower plants from Eskom Uganda Limited, the electricity demand is expected to grow at an annual rate of approximately 8.31% in 2023, continuous implementation of the Declining Block Tariff Structure for large and extra large industrial consumers, continued implementation of the domestic cooking tariff to encourage domestic consumers to cook using electricity, implementation of the institutional cooking tariff of 451 shillings per unit that targets to support over 500 institutions such as schools, hospitals and prisons to transition from the use of biomass energy such as firewood and charcoal to cooking using electricity.
NEW / REDUCED TARIFF STRUCTURE
For Domestic Consumers, the cost for the lifeline unit (first 15 units purchased in a month) has been maintained at 250 shillings per unit.
“Above the lifeline units, we shall pay 808.9 shillings down from 820.9 shillings representing 1.5% reduction,” Kannabi explained.
For Commercial consumers, the tariff has been reduced from 637.7 shillings paid in Quarter 4 of 2022 to 624.6 shillings representing 2.1% reduction.
For Medium Industrial Consumers, the cost has be reduced from 482.3 shillings paid in Quarter 4 of 2022 to 472.3 shillings representing 2.1% reduction.
For Large Industrial Consumers, the cost of electricity has been reduced from 388.5 shillings per unit paid in Quarter 4 of 2022 to 386.3 shillings representing 0.6% reduction.
For Extra large industrial consumers, the tariff has been reduced from 328.5 shillings per unit to 326.6 shillings representing 0.6% reduction.
However, Street lighting tariff has remained unchanged at 370 shillings.
“This brings us to a waited average tariff of 498.3 shillings compared to the previous 504.2 shillings representing 1.2% reduction. This is happening amidst inflation of all other commodities increasing by more than that. As prices go up, for us we have decided to lower the tariff, on average by 1.2%,” said Kannabi.
DETAILED ELECTRICITY TARIFFS FOR QUARTER 1 (JANUARY TO MARCH) 2023
Domestic Consumers
Lifeline Tariff (First 15 Units in a month) – 250 shillings per unit.
16 to 80 units – 808.9 shillings per unit.
81 to150 units – 412.0 shillings per unit.
150 units – 808.9 shillings.
Commercial Consumers
At Peak (6pm to midnight) – 820.3 shillings per unit.
“At this time, the consumption is at peak. The domestic consumers are back home and are cooking, as well as the industries are continuing their production, and the commercial, the hospitality and the hotel industry is also at peak. So this period, everyone is using electricity, and that is why we try to discourage especially the Industrialists from using power during peak so that they allow the domestic to enjoy,” explained ERA CEO, Eng. Ziria Tibalwa Waako
Off-peak time (midnight to 6am) – 380.2 shillings per unit of electricity.
“That is the period when the price of electricity is lowest. This is the time when we encourage the industries to maximize usage because that time, the domestic users are asleep, there is no pressure on the lines, there is no competition for the electricity.”
Shoulder (6am to 6pm) – 628.3 shillings per unit of electricity.
“During this time (6am to 6pm), the industries are working, but also commercial consumers, hotels, and domestic consumers. So, there is some level of competition,”Eng Waako explained.
On average, commercial consumers will pay 624.6 shillings per unit of electricity.
Medium Industrial Consumers
At Peak (6pm to midnight) – 646.9 shillings per unit of electricity.
Off-peak time (midnight to 6am) – 255.4 shillings per unit of electricity.
Shoulder (6am to 6pm) – 476.8 shillings per unit of electricity.
On average, medium industrial consumers will pay 472.3 shillings per unit of electricity.
Large Industrial Consumers
Block 1
At Peak (6pm to midnight) – 521.3 shillings per unit of electricity.
Off-peak time (midnight to 6am) – 245.5 shillings per unit.
Shoulder (6am to 6pm) – 387.2 shillings per unit of electricity.
Block 2 (Declining Block Tariff)
At Peak (6pm to midnight) – 498.9 shillings per unit.
Off-peak time (midnight to 6am) – 235.0 shillings per unit of electricity.
Shoulder (6am to 6pm) – 370.5 shillings per unit.
On average, large industrial consumers will pay 386.3 shillings per unit under Block 1, and 369.7 shillings per unit under Block 2 (Declining Block Tariff).
Extra Large Industrial Consumers
Block 1
At Peak (6pm to midnight) – 431.1 shillings per unit of electricity.
Off-peak time (midnight to 6am) – 234.9 shillings per unit.
Shoulder (6am to 6pm) – 328.2 shillings per unit.
Block 2 (Declining Block Tariff).
At Peak (6pm to midnight) – 393.2 shillings per unit.
Off-peak time (midnight to 6am) – 214.2 shillings per unit.
Shoulder (6am to 6pm) – 299.3 shillings per unit.
On average, extra large industrial consumers will pay 326.6 shillings per unit under Block 1, and 297.8 shillings per unit under Block 2 (Declining Block Tariff).
Street Lighting
370.0 shillings per unit of electricity.