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Electricity jolt for Ugandans

Ugandans were shocked to learn of a 250% hike in the price of electricity effective immediately. The Uganda Electricity Authority pointed out that its prices have not changed in almost nine years and do not reflect the true cost of supplying power. The energy sector Is capital costs are mostly denominated

in foreign exchange and that, argued the authority, makes it necessary to peg the charges to forex fluctuations.

The new electricity tariff will help pay for the Kitra power project, improve service delivery and further develop grid extension. Industry leaders and the Uganda National Chamber of Commerce are concerned that so big and sudden a jolt in power prices could be destructive to the economy.

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