Adverse Macroeconomic Factors Bite, Compel ERA To Approve New Power Tariffs

The Electricity Regulatory Authority (ERA) has approved new Electricity End-User Tariffs to be charged by Umeme Limited for the supply of Electrical Energy in the Billing Period from October to December 2022.

According to documents seen by this website, the hostile economic environment in Uganda compelled the Electricity Regulatory Authority (ERA) to revise increase tariffs for electricity, in a bid to mitigate the costly production and supply of power in the country.

The Authority recently conducted a Tariff Review of the Fourth Quarter of 2022 starting October to December, considering Umeme Limited Distribution and Supply of Electricity Licenses, Eskom Uganda Limited License for Generation and Sale of Electricity, the Bulk Power License to Uganda Transmission Company and the Quarterly Tariff Adjustment Methodology, 2014.

Following the said Tariff Review, the Authority found it imperative to revise electricity tariffs due to adverse Macroeconomic Factors in the country currently, which have resulted into an increase in the cost of generation and supply of power.

The Authority’s decision to revise the power tariffs was advised by among others the Inflation Rate leading to Inflationary Adjustment Factor (ITAF), Exchange Rate leading to Exchange Rate Adjustment Factor (FERAF), hiked Fuel Prices at the International Market leading to Fuel Price Adjustment Factor (FPAF), plus the Energy Mix and other costs approved by Authority Adjustment Factor (EMAF).

The decision to revise electricity tariffs is contained in a new report by Geofrey Okoboi, the Acting Chief Executive Officer, ERA, titled;
SCHEDULE OF END-USER TARIFFS APPLICABLE FOR THE SUPPLY OF ELECTRICITY BY UMEME LIMITED FOR THE FOURTH QUARTER OF THE YEAR 2022’.

Okoboi’s report, which indicates the new electricity tariffs that will be levied by Umeme on power consumers of different categories states in part thus;
“The Electricity Regulatory Authority has approved the Schedule of Electricity End-User (Retail) Tariffs to be charged by Umeme Limited for the supply of Electrical Energy in the Billing Period October to December 2022.”

“The approved Tariffs have been determined in consideration of the changes in the Macro-Economic factors of; International Prices of Fuel, Exchange Rate of the Uganda Shilling against the United States Dollar, Core Consumer Price Index (Inflation), the Energy Generation Mix, and Costs approved by the Authority,” Okoboi adds in the report.

Below is the table indicating the new tariffs and the parameters used in the determination of the Tariffs for the Fourth Quarter of 2022.

Tables indicated in the Full Statement below..

Q4 Tariff - Refined

It should however be noted that the detailed Tariff Review Report for the Fourth Quarter of 2022 is available at http://www.era.go.ug.

Worth noting also is that this Schedule of Tariffs for the Fourth Quarter of 2022 shall be applicable to Energy consumed in the period October to December 2022.

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