GOVERNMENT REDUCES ELECTRICITY TARIFFS TO EASE CONSUMER COSTS.
The Electricity Regulatory Authority (ERA) has announced a reduction in electricity tariffs for the first quarter of 2025, lowering the cost of power for domestic, commercial, and industrial consumers across Uganda. The new rates reflect an average 5.2% decrease compared to the previous quarter, driven by favorable economic factors such as reduced inflation, lower international fuel prices, and stable foreign exchange rates. ERA Chairperson Sarah Wasagali Kanaabi said the reduction would save consumers approximately UGX 155 billion over the next three months. Under the revised tariff schedule, domestic consumers on the Lifeline Tariff will continue to pay UGX 250 per unit for the first 15 units each month. Other domestic users will pay UGX 775.7 per unit for the first 80 units consumed, down from UGX 796.4 in the last quarter of 2024. Commercial consumers, including small businesses and welders, will pay UGX 575.2 per unit, reduced from UGX 599.9. Medium industrial consumers in the manufacturing and services subcategories will pay UGX 417.8 and UGX 434.5 per unit, respectively. Large industrial users will see rates drop to UGX 351.5 per unit for manufacturing and UGX 367.1 for services, while extra-large industries will pay UGX 299.1 per unit, down from UGX 320.1. Public amenities, including hospitals and street lighting, will benefit from a reduced rate of UGX 360 per unit. Energy Minister Ruth Nankabirwa attributed the tariff reduction to ongoing efforts to improve affordability and efficiency in the sector. She also highlighted the upcoming transition of electricity distribution from Umeme Ltd to Uganda Electricity Distribution Company Limited (UEDCL) in April 2025 as a potential driver of further price reductions. “When UEDCL takes over operations, the tariff regime will be adjusted to reflect their operational parameters, covering the entire country,” said Nankabirwa. She emphasized that any further reductions would be gradual to maintain the sector's sustainability. The government also expects new power generation projects, such as the Karuma Hydropower Plant, to boost supply and ease costs. Uganda’s installed generation capacity currently stands at 2,050 megawatts, double the national demand.generation capacity currently stands at 2,050 megawatts, double the national demand. Wasagali noted that ongoing investments and economic stability would likely contribute to future tariff reductions. “The commissioning of new plants and the integration of West Nile into the national grid will enhance efficiency and affordability,” she said. The revised tariffs aim to make electricity more accessible, particularly for low-income households and critical public services, ensuring continued economic growth and development across Uganda.
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