Slight fall in Q4 electricity prices

Electricity in the last three months of this year will cost an average of 0.53% less than it did between July and August, a tariff schedule released by the Electricity Regulatory Authority on Monday shows.

Domestic consumers will pay Shs623.6 per unit versus Shs626.0 in the third quarter, a 0.38% decline. Commercial consumers will pay Shs565.1 compared to Shs566.9 in the previous period, while medium industrial consumers will pay Shs523 from Shs524.7. Large industrial consumers will pay Shs347.1 versus Shs349.5, while power used by street lights will cost Shs606.2 compared to Shs608 in the previous three months.

Electricity Retail Tariffs for the fourth quarter, 2016 (UGX)
Category Q3 Q4 % Change
Domestic 626 623.6 -0.38%
Commercial Consumers 566.9 565.1 -0.32%
Medium Industrial Consumers 524.7 523 -0.32%
Large Industrial Consumers 349.5 347.1 -0.69%
Street Lights 608 606.2 -0.30%
Weighted Average 472.7 470.2 -0.53%

The slight fall is due to a decline in international fuel prices, according to the ERA. “The international fuel price reduced from US$44.3 per barrel used in the determination of the Base Tariffs to US$43.1 per barrel as at the end of August 2016, resulting into a negative Fuel Adjustment Factor,” the schedule says.
The ERA determines the tariffs – charged by Umeme Ltd, the power distributor – based on changes in inflation, the foreign exchange rate, and fuel prices. The law however caps increases in the quarterly tariff at 2.5% relative to the previous quarter.