Uganda increases power tariffs as power crisis deepens

The Uganda Electricity Regulatory Authority (ERA) has increased the country's electricity tariffs as its power crisis continues to deepen, local radio reported on Monday.

Frank Sebowa, the Executive Director of ERA was quoted by KFM as saying that the body increased the tariffs following constraints in the generation capacity from the country's power stations in Jinja, 80 km east of Kampala.

He said the country's reliance on thermal electricity has also led to the increase of the tariffs which will become effective starting June 1, 2006.

"Thermal power is very expensive and therefore the tariffs have to automatically go up," said Sebowa.

The most affected are large power consumers like industries whose tariff rate has been increased by 58 percent. They now have to pay 120.8 percent per kilo watt hour (kWh).

The tariff rate for commercial, medium consumers and street lights has been increased by a uniform 37 percent, which were rated at 286.8 shillings (15.8 U.S. cents), 261.5 shillings (14.5 cents) and 282.8 percent (15.7 cents) respectively. Domestic consumers have to pay 298.2 shillings, an increment of 37 percent.

The rate increases come at a time economic experts are warning that the country's electricity crisis is heavily affecting its economic growth.

President Yoweri Museveni recently said the government was working around the clock to end the power crisis. He said Bujagali and Karuma dams would be completed within 42 months, with or without donor assistance.

In the short run, the government would import two diesel generators that would generate 100 Mega Watts (MW) and introduce power saving mechanisms, including energy-saving bulbs and solar systems countrywide.

Source: Xinhua