Minister Announces Lower End-User Tariffs for 2024
KAMPALA – In a briefing held at the Uganda Media Centre on January 5, 2024, Ruth Nankabirwa Ssentamu, the minister of energy and mineral development, announced the electricity end-user tariffs for the year 2024. The Minister began her speech by welcoming the attendees back from the Christmas and New Year holidays and congratulating them on the announced weighted average tariff reduction of 1.6 percent.
The reduction in tariffs reflects the government’s commitment to gradually reducing end-user tariffs to support industrialization and improve the welfare of society. Minister Nankabirwa emphasized the government’s efforts in this regard as part of its broader goal of socio-economic transformation.
Key highlights from the minister’s speech included:
Operationalization of the Electricity (Amendment) Act 2022: The Minister highlighted the implementation of provisions in the Electricity (Amendment) Act, 2022. Notable achievements included the payment of royalties by all renewable energy generators to local governments in their respective areas of operation and the opening of the transmission segment for private investment.
The Minister mentioned the amendment of the Electricity Act, of 1999, allowing specified consumers to purchase electricity in bulk directly from generation and transmission licensees. This move aims to provide more flexibility in electricity procurement and distribution.
The government has also launched several programs to accelerate electricity connections and enhance access to power supply. Initiatives like the hybrid customer connection financing framework have reduced the cost of new customer connections, making it more affordable for citizens to access electricity.
The minister discussed the expiration of concessions for private players, emphasizing that they would revert to the government. The transition includes the Umeme concession, which is set to return to government control shortly. A Joint Technical Committee (JTC) has been established to oversee this process.
In the speech, the minister highlighted the critical TID upgrade affecting all prepaid meters based on STS technology. The upgrade aims to ensure continued electricity supply by migrating all Yaka (prepaid) meters onto the new Token Identification System (TID Rollover) by October 2024.
The minister urged Ugandans to seize the opportunities presented by the electricity subsector in 2024, including investment opportunities, reduced connection costs, and tariff incentives.
In conclusion, Minister Nankabirwa stressed the government’s commitment to providing affordable and reliable electricity to support industrialization and economic development in Uganda.
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