Government reduces power tariffs

Government has announced a reduction in power tariffs.

Domestic users will now pay Sh.520.4 down from Sh.524.5 per unit.

Commercial consumers will now pay Shs.474.7 down from Shs.487.6 for each unit.

While for small scale manufacturers each unit will cost Sh.454.0, down from Sh.458.9 charged previously.

This has been revealed at a joint news conference addressed by the Electricity Regulatory Authority and the Energy Ministry at the Uganda Media Center.

Announcing the changes, state minister for energy Peter Lokeris has said that government was also considering working on the reasons behind the high tariffs including payment of private thermo power plant operators.

The minister adds that government is also working towards fulfilling the NRM manifesto of making power affordable and accessible to all.

 But what difference will this reduction make to the consumers?

Economists have described today’s announcement of a reduction in power tariffs by government as negligible.

Renowned economist Augustus Niwagaba says the cost of electricity remains high despite the changes. He says this will not have any impact on the cost of doing business, calling for further reductions if the business environment is to improve.