Rank: Chief Joined: 1/3/2007 Posts: 18,380 Location: Nairobi
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The same thing happened to KPLC. Right after the Rights Issue, the proposed Power Hike was 'delayed' for political purposes. Government delays higher power tariffs. The government has delayed the increase of electricity tariffs, which was to be effected in two weeks. Officials from the Finance ministry met their counterparts from the Electricity Regulatory Authority (ERA) and agreed to the temporary relief for power consumers in order to allow further consultations. ERA was scheduled to increase tariffs for domestic consumers, commercial consumers, medium industries, large industries and streetlights by 7%, 7.8%, 1.5%, 4.5% and 11.7% respectively. On top of the increase, ERA was planning to roll out a new system of computing tariffs every month based on underlying economic data, such as inflation and the exchange rate. Industry sources say the country will soon have to fall back on the more expensive thermal power, with Uganda Electricity Generation Company warning that surplus energy from the Bujagali plant will soon be exhausted. Thermal electricity costs USD 0.29 (UGX 779.5) compared with hydro’s average USD 0.10 (UGX 268.8). Power transmission and distribution companies transfer such costs to the consumers. Some consumers have also argued that in spite of a previous increment of tariffs in January 2012, there has been no substantial improvement in the supply of electricity and they now face endless power outages, which Umeme attributes to routine maintenance of the networks rise depending on the state of the economy.(Source : The Daily Monitor) Will UMEME eat the 'loss' or deferred revenue? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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