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- May 23, 2017
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Ikikenga kukuza biashara, uwekezaji na viwanda Nchi ya Uganda imesema itawapunguzia bei ya umeme watu wote walioko kwenye sekta ya biashara, viwanda na Watumishi wengine wakubwa Ili kuwaounguzia gharama za uendeshaji na kuchochezea zaidi Uchumi.
Pamoja na Uganda Kunyomwa Mikopo na WB na Kuondolewa kwenye soko la AGOA na Marekani lakini uchumi wa Uganda unatarajia kuwa miongoni mwa Nchi 10 zitakazofanya vizuri mwaka 2024.
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In the first three months of 2024, the Ugandan government will reduce the wholesale price of electricity for commercial and medium-sized industries as a subsidy to spur economic growth and also avert a wave of company insolvencies that’s orchestrated by high energy operational costs.
This move benefits commercial enterprises, medium industrial, large industrial, and extra-large industrial, with a weighted average cut of 1.6 percentage points.
"The electricity regulator has prioritized a tariff reduction of 1.8 percent for commercial and 2.8 percent for medium industries, supporting the small and medium enterprises. This is complemented by tariff initiatives aimed at reducing costs for large and extra-large industrial consumers," the Electricity Regulatory Authority (ERA) explained in a statement.
This translates into an estimated annual savings of Shs40.32 billion in electricity bills for over 5,000 businesses spanning various sectors within these industries.
Dr Sarah Kanaabi Wasagali, the chairperson of ERA, stated, "The ongoing implementation of measures to reduce electricity end-user tariffs for manufacturers aligns with pre-determined demand growth targets for 2024, approved in February 2023." She added that electricity demand is projected to rise by 9.53 percent in 2024.
While maintaining tariffs for domestic consumers and street lights, the government aims to foster economic growth by focusing on small and medium-sized industries. However, domestic energy buyers purchasing more than 15 units of electricity have been approved for a 1 percent reduction in tariffs.
Dr Wasagali further explained that tariff adjustments were informed by applications for reviews from key entities like Uganda Electricity Generation Company Limited (UEGCL), Uganda Electricity Transmission Company Limited (UETCL), Uganda Electricity Distribution Company Limited (UEDCL), and Umeme Limited, submitted starting September 2023.
This regulatory process is mandated by Section 10 (f&g) of the Electricity Act 1999 (As Amended) and corresponding licenses, requiring an annual review of electricity tariffs based on applications from industrial stakeholders across various segments.
"The tariff determination considers the costs of power acquisition from generation plants based on projected power quantities required for end user consumers and generation prices outlined in respective licenses and Power Purchase Agreements," Dr Wasagali clarified.
Under the government's plans, industrial consumers with potential power consumption growth will maintain billing at US 6.85 cents per unit during peak and shoulder hours. Domestic cooking tariffs and institutional cooking tariffs will also be continued to promote electricity usage for cooking.
This initiative is driven by the anticipation of ample power supply from the Karuma Hydro power plant, scheduled to commence operations this year, and systematic preparations for the distribution network's transfer upon the expiration of Umeme Limited's concession in March 2025.
The government's broader vision includes connecting an additional 1.5 million homes to the grid, raising the electrification rate from 28 to 50 percent, and ensuring electricity for every home by 2030. As of December 2022, Uganda had an installed capacity of 1,402 megawatts, with demand estimated at 843 megawatts, leaving a surplus of 559 megawatts. The completion of the Karuma dam is expected to increase the country's installed capacity to at least 2000 MW.
In October last year, government unveiled the Energy Policy 2023, aligning with Uganda's Vision 2040 and aiming to facilitate socioeconomic transformation by expanding electricity access for homes, commercial businesses, industrial parks, and refugee/host communities.
Source: Daily Monitor
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My Take: Ni vyema sasa Serikali yetu ikaona umuhimu wa Kuiga jambo hili zuri kutoka Kwa Uganda Kwa kuwaounguzia gharama za umeme wawekezaji kwenye sekta za kimkakati kama Madini,viwanda na Biashara Ili kuinua Ari ya uzalishaji wa kigeni badala ya kuwa busy na makongamano wakati watu wanalia gharama kubwa za uzalishaji.
Gharama za uzalishaji ndio component kuu Kwa Wawekezaji na wafanyabiashara.
Kongole sana Uganda.
Pamoja na Uganda Kunyomwa Mikopo na WB na Kuondolewa kwenye soko la AGOA na Marekani lakini uchumi wa Uganda unatarajia kuwa miongoni mwa Nchi 10 zitakazofanya vizuri mwaka 2024.
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Uganda slashes electricity prices for businesses
In the first three months of 2024, the Ugandan government will reduce the wholesale price of electricity for commercial and medium-sized industries as a subsidy to spur economic growth and also avert a wave of company insolvencies that’s orchestrated by high energy operational costs.
This move benefits commercial enterprises, medium industrial, large industrial, and extra-large industrial, with a weighted average cut of 1.6 percentage points.
"The electricity regulator has prioritized a tariff reduction of 1.8 percent for commercial and 2.8 percent for medium industries, supporting the small and medium enterprises. This is complemented by tariff initiatives aimed at reducing costs for large and extra-large industrial consumers," the Electricity Regulatory Authority (ERA) explained in a statement.
This translates into an estimated annual savings of Shs40.32 billion in electricity bills for over 5,000 businesses spanning various sectors within these industries.
Dr Sarah Kanaabi Wasagali, the chairperson of ERA, stated, "The ongoing implementation of measures to reduce electricity end-user tariffs for manufacturers aligns with pre-determined demand growth targets for 2024, approved in February 2023." She added that electricity demand is projected to rise by 9.53 percent in 2024.
While maintaining tariffs for domestic consumers and street lights, the government aims to foster economic growth by focusing on small and medium-sized industries. However, domestic energy buyers purchasing more than 15 units of electricity have been approved for a 1 percent reduction in tariffs.
Dr Wasagali further explained that tariff adjustments were informed by applications for reviews from key entities like Uganda Electricity Generation Company Limited (UEGCL), Uganda Electricity Transmission Company Limited (UETCL), Uganda Electricity Distribution Company Limited (UEDCL), and Umeme Limited, submitted starting September 2023.
This regulatory process is mandated by Section 10 (f&g) of the Electricity Act 1999 (As Amended) and corresponding licenses, requiring an annual review of electricity tariffs based on applications from industrial stakeholders across various segments.
"The tariff determination considers the costs of power acquisition from generation plants based on projected power quantities required for end user consumers and generation prices outlined in respective licenses and Power Purchase Agreements," Dr Wasagali clarified.
Under the government's plans, industrial consumers with potential power consumption growth will maintain billing at US 6.85 cents per unit during peak and shoulder hours. Domestic cooking tariffs and institutional cooking tariffs will also be continued to promote electricity usage for cooking.
This initiative is driven by the anticipation of ample power supply from the Karuma Hydro power plant, scheduled to commence operations this year, and systematic preparations for the distribution network's transfer upon the expiration of Umeme Limited's concession in March 2025.
The government's broader vision includes connecting an additional 1.5 million homes to the grid, raising the electrification rate from 28 to 50 percent, and ensuring electricity for every home by 2030. As of December 2022, Uganda had an installed capacity of 1,402 megawatts, with demand estimated at 843 megawatts, leaving a surplus of 559 megawatts. The completion of the Karuma dam is expected to increase the country's installed capacity to at least 2000 MW.
In October last year, government unveiled the Energy Policy 2023, aligning with Uganda's Vision 2040 and aiming to facilitate socioeconomic transformation by expanding electricity access for homes, commercial businesses, industrial parks, and refugee/host communities.
Source: Daily Monitor
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My Take: Ni vyema sasa Serikali yetu ikaona umuhimu wa Kuiga jambo hili zuri kutoka Kwa Uganda Kwa kuwaounguzia gharama za umeme wawekezaji kwenye sekta za kimkakati kama Madini,viwanda na Biashara Ili kuinua Ari ya uzalishaji wa kigeni badala ya kuwa busy na makongamano wakati watu wanalia gharama kubwa za uzalishaji.
Gharama za uzalishaji ndio component kuu Kwa Wawekezaji na wafanyabiashara.
Kongole sana Uganda.
