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Gov’t introduces new tariff category for public institutions

by Muhammad Ngobi
in Business, News
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Gov’t introduces new tariff category for public institutions
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The Ugandan government has announced the introduction of new tariff categories to address the power needs of public institutions, with a particular focus on referral hospitals and security agencies.

The move is aimed at reducing electricity costs and ensuring consistent power supply to key services.

Dr. Sarah Wasagali Kanaabi, Chairperson of the Electricity Regulatory Authority (ERA), disclosed on Thursday that the previous “street lighting” tariff category has been replaced by a new “public amenities” category.

This will now cover street lighting, public hospitals, police stations, and Uganda People’s Defence Force (UPDF) barracks.

As part of the changes, the tariff for public amenities will drop significantly, from Shs 775.7 per unit to Shs 360.0 per unit.

This reduction is seen as a step towards addressing the payment challenges faced by institutions in these sectors.

The Minister for Energy, Ruth Nankabirwa, expressed optimism about the new tariff, citing that many hospitals have faced difficulties in paying their electricity bills.

“Hospitals have been defaulting on payments yet the president gave directive not to switch them off.  How do you switch off police and UPDF yet these are  important institutions. We hope this time round, these institutions will pay now that we are reducing the cost of their power,”Nankabirwa said.

The development comes on the backdrop of reports of several government institutions including police barracks that have in the past seen power cuts due to default in payment.

In May, 2023, the Nsambya and Naguru police barracks experienced prolonged power shortages  affecting over 10,000 officers who sleep in these facilities.

 

Tags: electricity costsenergy policyERANaguru police barracksNsambya police barrackspolice barrackspower cutspower shortagespublic amenities tariffpublic institutionsreferral hospitalsRuth Nankabirwasecurity agenciestariff categoriesUganda governmentUPDF barracks
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Muhammad Ngobi

Muhammad Ngobi

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