Page 27 - EPSI Magazine Issue 8 final 2018.indd

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DEMYSTIFYING UGANDA’S ENERGY TARIFF

SETTING METHODOLOGY

Challenges in tariff setting – balancing interests of stakeholders

Investors Consumers
 Return  Lower tariffs
 Recovery of costs  Reliable supply

Regulator

Government
 Lower Tariffs
 Loss reduction
 Increased investment

What is an Electricity Tariff?

lectricity tariff is the price paid per unit of electricity consumed. Electric energy is measured in
E kWh, MWh or GWh.

The tariff is derived by dividing the costs associated with the production, transmission and distribution
of electricity by the units billed.

Tariff (Shs/kWh) = Revenue Requirement (Shs)/ Units billed (kWh). The units billed are equal to the units
produced or supplied adjusted for the lost energy (Energy Target Losses). T= R/(G-L)