By Our Reporter
NATIONAL
Electricity Regulatory Authority (ERA) has announced a reduction in the electricity Tariffs for the period July to September 2024.
In a brief statement issued today Monday, 8th July, 2024, the Regulatory body says Domestic Tariffs are now 803.0/kWh down from 805 announced by the Authority in April, 2024.
Meanwhile, Commercial Tariffs will be 606.2/kWh which is a 1.5% reduction from 611.6/kWh.
At the beginning of each year, the regulator announces a base tariff for Umeme customers based on its estimates of future costs, investments and target levels of electricity distributed and sold. This tariff is then adjusted quarterly to reflect changes in the three macroeconomic variables that have the greatest impact on sector prices – fuel prices, exchange rates and underlying consumer inflation.
In addition to the tariffs, Umeme customers are subject to other charges. These include 18 per cent VAT on every payment – the first deduction on every payment you make – and a monthly service fee of Shs3,360. If you haven’t paid the monthly service fee yet, it will be deducted after VAT. The remaining funds will then be used to purchase electricity units.
