Business operators and other electricity consumers in Uganda have appealed against a move to increase electricity tariffs electricity suppliers and distributors in Uganda.

This follows an application to the Electricity Regulatory Authority for a 2011 tariff review by Eskom (U) Ltd, Uganda Electricity Generation Company Ltd (UEGCL), Uganda Electricity Transmission Company Ltd (UETCL), and Umeme Ltd.

The companies are proposing a 15% increase from 385 shillings per unit to 462 shillings per unit for domestic consumers, and Commercial consumers like kiosks, saloons, restaurants, supermarkets, internet cafes and shops among others to pay 455.36 shillings up from the current 358 shillings per unit of electricity.

Electric power connection

The proposed tariff structure also wants small and medium industrial consumers to pay 457 shillings per up from 333 shillings per unit. Large industrial UMEME customers will pay 321.14 shillings while street lighting will pay 451 shillings from 385 shillings per unit.

UMEME General Manager for Corporate and Regulatory Affairs, Sam Zimbe said the tariff increase is necessary to fill gap resulting from fluctuating exchange rate, dependence on diesel powered thermal electricity and power theft.

But members of the public who turned up for a public hearing on the proposed tariff increase rejected the application saying the companies should instead become more efficient in transmitting and distributing power. More than 30% of the electricity generated is lost due to technical problems and power theft.

At the end of the hearing, ERA seemed to weigh in on the side of electricity consumers. ERA Acting Chief Executive Officer, Benon Mutaabi said that the power companies can wait on better times in the near future, especially the completion of the Bujagali power Dam expected by June 2011 which will add 250MW of electricity to Uganda’s energy capacity.

The hearing was attended by electricity consumers, business people, government agencies and electricity sector stakeholders

ERA is required (Under regulation 18(2) of the Electricity (Application for Permit, License and Tariff Review) Regulations, 2007) to hold public hearings on proposed changes in electricity tariff.

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