MANUFACTURERS WILL BE ALLOWED TO PURCHASE ELECTRICITY DIRECT FROM TRANSMISSION COMPANIES TO REDUCE POWER TARRIFS -MINISTER NANKABIRWA

By Patrick Kabura

The Ministry of Energy and Mineral Development will allow t manufacturers   / industries in Uganda to purchase electricity directly from transmission companies to make power more  affordable for Ugandans.

“My Ministry is spear heading the amendment of the Electricity Act 1999 to provide for purchase of electricity directly from generators and/ or Transmission Company by big industrial customers to reduce the end user tariff for manufacturers starting with those in the proximity of transmission infrastructures.”  Hon. Ruth Nankabirwa, the Minister of Energy and Mineral Development, has said .

Hon. Nankabirwa said the move was one of the strategies that has been set up by  her Ministry to continuously reducing the end user tariffs for all electricity consumers in the country -including industrialists .

She said  noted  that Uganda  has registered an increase in power generation and  access to electricity following the increased number of  Electricity Distribution Operators licensed by the Electricity Regulatory Authority (ERA) .

“Electricity Distribution Companies include; Umeme Limited, West Nile Rural Electrification Company (WENRECo), Uganda Electricity Distribution Company Limited (UEDCL), Kyegegwa Rural Energy Co-operative Society (KRECS), Pader-Abim Community Multi-Purpose Electric Co-operative Society (PACMECS), Kilembe Investments Limited (KIL), and Kalangala Infrastructure Services Limited (KIS).” She said.

Nankabirwa further revealed that there are several other small off-grid service providers and private providers for solar home systems. This has improved access to 57% (19% on the grid and 38% off-grid) according to the 2019/2020 access statistics released by the Uganda Bureau of Statistics.

Nankabirwa said the Energy ministry and its agencies   was holding quarterly stakeholder engagements with Uganda Manufacturers Association (UMA) to discuss issues concerning power reliability, challenges faced by individual industrial consumers, electricity tariff trajectory, demand growth initiatives, ESI investment plans, and implementation of directives by President Yoweri Museveni to make electricity affordable for all.

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