Just before Umeme’s concession ended, the Electricity Regulatory Authority (ERA) announced new electricity tariffs, effective midnight on Monday, for the Uganda Electricity Distribution Company Limited (UEDCL).
ERA, established in 2000 to regulate Uganda’s electricity sector, approved these tariffs for the April-June 2025 period. ERA Board Chairperson Dr. Sarah Wasagali Kanaabi stated the new tariffs followed a thorough review and public consultation.
Key tariff changes include:
Lifeline Tariff: Shs 250 per unit for domestic consumers using up to 100 units.
Domestic Tariff: Shs 756.2 per unit for domestic consumers 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 Tariffs: Ranging from Shs 282.9 to Shs 300.4 per unit.
Extra-Large Industrial Tariffs: Shs 203.6 per unit.
Public Amenities Tariff: Shs 360 per unit.
Connection charges remain unchanged.
The domestic cooking tariff of Shs 412 per unit, for consumption between 81 and 150 units, will continue.
ERA considered factors like projected 10.4% annual demand growth, the end of Umeme’s license, continued quarterly tariff adjustments, UEDCL’s performance targets, and measures to reduce manufacturing tariffs.
The appreciation of the Ugandan shilling against the US dollar was also factored in.
Dr. Wasagali noted ERA will continue reviewing public amenities and industrial customer categories, and maintain the declining block tariff for large industrial manufacturers.
The block tariff for extra-large industrial manufacturers will cease.ERA Communications Director Julius Wandera attributed the tariff reductions to macroeconomic factors, including exchange rates, inflation, and global fuel prices.
He also noted the absence of Umeme’s investment costs.
“With their exit, tariffs are expected to gradually decrease, with the initial benefits going to extra-large manufacturers,” he said.Wandera added that ERA’s goal of achieving a 0.5 US cent per unit tariff for manufacturers has been reached.
This announcement follows ERA’s previous tariff reduction for the first quarter of 2025, which aimed to make electricity more affordable, particularly for domestic and small business consumers.
That prior reduction was aligned to the NRM Manifesto directive to reduce manufacturing electricity costs.
Discussion about this post