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Deconstructing the myth of power tariffs Following two decades of concerted investments by both government and the private sector into especially electricity generation, Uganda’s supply, now exceeds demand—at least for now. Even in terms of energy security, Uganda has since diversified from over-reliance on hydro. Today, a total of thirty-three (33) power plants currently dispatch power to the national grid. These included four (4) large hydropower plants, nineteen (19) small hydropower plants, two (2) thermal (Heavy Fuel Oil – HFO) power plants, three (3) bagasse-based cogeneration power plants, and five (5) Solar PV power plants. With supply and distribution reliability issues largely resolved, government has now set upon solving the pertinent issue of affordability. Government is targeting to achieve at least US Cents 5 per KWh, especially for industrial consumers- a price, government argues, and power companies agree is necessary for the competitiveness of Uganda’s goods and services. In this article, Prof. Samuel Sejjaaka, the Team Leader at MAT Abacus Business School, argues that while affordable power tariffs are mission-critical, any lasting solution should not be imposed and must objectively factor in, both the historical, present and future economics of efficiently generating, transmitting, distributing and administering the power on one hand as well as stimulating and sustaining efficient demand and access on the other.
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