The electricity regulatory authority (ERA) has today put a smile to the faces of all Ugandan power consumers as it announced a reduction in power prices that will be effected starting 16th January 2014.

At a news conference to announce the new reduced power tariffs today in Kampala, the chairman ERA, Richard Santo Atwire states that domestic consumers with now pay UGX.520.4perkWh from UGX.524.5, commercial consumers UGX.474.4perkWh from 487.6, medium industrial UGX.452.0per kWh from 458.9, large industrial UGX.310.4per kWh from 312.8, street lights UGX.488.8per kWh and lifeline at UGX.150 per unit for the first 15 units.

Santos attributes that slight reduction in power prices to govt commitment to meet capacity payments to thermal plants in 2014 at UGX.59.531Bn, govt to convert debt obligations for UEB successor companies to zero, among others.

But the state minister for minerals Peter Lokeris the reduction is also geared at stimulating production to see a reduction in product prices among other factors with the new tariffs applicable to all power agencies in the country.

The new tariffs now put Uganda among the region’s best power tariff nation which might spar industrial growth in the country compared to other member states.