Uganda's electricity tariffs are likely to increase in October for the second time in the year in anticipation of a shift in emphasis towards thermal from hydro- power generation at the beginning of next year.

Power firms have applied to the Electricity Regulatory Authority (ERA) for tariff increments to cater for higher cost of operating thermal generators, the state-owned New Vision disclosed on Wednesday.

The request for new tariff adjustments comes barely four months after ERA announced a 37 percent tariff increment, which was effected on June 1.

The new tariff structure saw domestic consumers paying 298.2 Ugandan shillings (16 U.S. cents) per kilowatt-hour up from 171.4 shillings (9 cents).

At the beginning of next year, thermal power will account for 150MW while 135MW of hydro-power would be generated. Thermal power costs thrice as much to generate as hydro-power.

"It is only the transmission company that has asked for tariff reviews because they are the sole buyer and transmitters of electricity. We are yet to receive from other firms," ERA's public communication officer Sarah Birungi said.

Uganda Electricity Transmission Company (UETCL) has licenses for system operator, operator of high-voltage grid, exporter and importer of bulk power.

"There are four Independent Power Producers (IPP) who sell electricity to us at different prices. Therefore, there is need for new tariff adjustments to cater for all the prices," the acting managing director of UETCL Gerald Muganga said.

Uganda has been struggling to put up two more hydro-power stations by 2010 to meet the country's surging power demand, which is far beyond the current supply capacity from Jinja hydro-power plants, 80 km east of Kampala.

Before the completion of the hydro-power stations, the government has opted for thermal solutions to the existing souring power crisis which led to the 24 hour load shedding in most parts of the country.

Source: Xinhua