The Electricity Regulatory Authority (ERA) has announced new electricity tariffs following the handover of power distribution from Umeme to the Uganda Electricity Distribution Company Limited (UEDCL). The new rates, effective midnight on Monday, cover the April to June 2025 period.
Key Changes in Electricity Tariffs
ERA Board Chairperson Dr. Sarah Wasagali Kanaabi stated that the revised tariffs followed a thorough review and public consultation. The updated rates are as follows:
- Lifeline Tariff: Shs 250 per unit for domestic consumers using up to 100 units.
- Domestic Tariff: Shs 756.2 per unit for households exceeding 15 units.
- Commercial Tariff: Shs 546.4 per unit.
- Medium Industrial Tariff: Shs 355.1 per unit.
- Manufacturing Tariff: Shs 412.5 per unit.
- Large Industrial Tariff: Between Shs 282.9 and Shs 300.4 per unit.
- Extra-Large Industrial Tariff: Shs 203.6 per unit.
- Public Amenities Tariff: Shs 360 per unit.
Connection charges remain unchanged, and the domestic cooking tariff of Shs 412 per unit (for usage between 81 and 150 units) remains in effect.
Why the Tariff Adjustments?
Several factors influenced these new rates. ERA cited an annual demand growth of 10.4%, the transition from Umeme to UEDCL, and the need for continued quarterly tariff adjustments.
Additionally, Uganda’s currency appreciation against the US dollar helped stabilize prices.
ERA also aims to lower electricity costs for manufacturers, aligning with the government’s industrialization agenda.
The previous declining block tariff for large industries will continue, but extra-large manufacturers will no longer receive block tariff benefits.
What Does This Mean for Consumers?
ERA Communications Director Julius Wandera attributed the tariff adjustments to macroeconomic factors such as inflation, exchange rates, and global fuel prices.
He emphasized that without Umeme’s investment costs, tariffs are expected to gradually decline, benefiting manufacturers first.
“The initial gains will be felt by extra-large manufacturers, but over time, we anticipate lower costs across other categories,” Wandera said.
These changes follow ERA’s first-quarter 2025 tariff reduction, which aimed to make electricity more affordable, especially for households and small businesses. The government continues to push for reduced manufacturing costs, as outlined in the NRM Manifesto.
