Minister Kyambadde blames high electricity tariffs on liberalisation
Trade minister Amelia Kyambadde has said it was a mistake to liberalise the electricity sector in Uganda.
Ms Kyambadde said many manufacturers are now being weighed down by high end-user electricity tariffs.
She becomes the second member of the Cabinet after President Museveni to regret the adoption of the policy.
Before the government liberalized the sector in the early 2000s, large manufacturers paid about Shs100 per unit compared to the Shs370.2 per unit they pay now.
This therefore has been linked to the higher costs of the manufacturers’ goods compared to goods manufactured in Tanzania, where the government controls the electricity distribution business.
This was during a United Nations Development Program (UNDP) Uganda dialogue about promoting Sustainable Industrialisation in Uganda on yesterday.
The liberalisation of Uganda’s electricity sector came on the heels of the World Bank’s recommendation.
The bank argued – in the late 1990s – that the Uganda Electricity Board (UEB), which was in charge of electricity generation, transmission and distribution, was inefficient.