The Electricity Regulatory Authority (ERA) has announced that starting January, electricity tariffs for most categories of consumers will be reduced.
While addressing the media in Kampala, ERA chairperson, Dr.Sarah Kanaabi Wasagali announced a 5.2% reduction for the first quarter of the new year which runs between January and March.
Consequently, the tariff for domestic consumers will reduce from Ug.Shs 803.0 to Ug.Shs606.2 per unit, commercial consumers will now pay Ug.Shs 575.2 from Ug.Shs 606.2 per unit.
The medium manufacturers will pay Ug. Shs 417.8 per unit, large manufacturing industries will pay Ug. Shs 351.5 while those involved in service will now pay Ug. Shs 367.1 per unit.
On the other hand, extra-large industries will be charged a tariff of Ug. Shs 299.1 while the public amenities tariff will now be Ug.Shs 360.0 per unit.
The ERA board chairperson said the 5.2% reduction will reduce the cost of delivery of electricity by Ug.Shs 155 billion.
Dr.Wasagali attributed this reduction in electricity tariffs to the expected demand growth at an annual rate of approximately 10.4% with energy purchased by UETCL increasing.
“The end of Umeme Limited’s licences and concession agreement for the distribution and supply of electricity on March , 31 will also contribute to this reduction in power tariffs but also the fully commission Karuma hydro power plant will contribute to the 2025 energy generation mix,” she explained.
According to the ERA board chairperson, they will continue to implement quarterly tariff adjustments based on inflation, exchange rate fluctuations, international fuel prices and other approved costs.
She also revealed that going forward, the street lighting category will be replaced by a public amenities category covering street lighting and public hospitals while medium and large industrial categories will be subdivided to distinguish between manufacturing and service based customers.
“The declining block tariff structure will continue for large and extra-large industrial consumers and the domestic cooking tariff at Ug.Shs412 per unit for consumption between 81kwh and 150 kwh per month,” Wasagali said.
Commenting about the reduction in power tariffs, the Minister for Energy, Ruth Nankabirwa, while highlighting the energy sector’s achievements in 2024 said government is committed to further bringing down the cost of power in the country.
“This achievement has led to saving the sector, the end user consumer and economy Ug.Shs 155 billion which underscores government’s commitment to progressively making the cost of electricity affordable to support industrialization, fostering socio-economic transformation and improve the well being of Ugandans,” Nankabirwa stated.
She applauded ERA for creating a specialized public amenities tariff category that takes care of public institutions, especially referral hospitals across the country.
Highlights Of Electricity Generation Expansion:
Uganda’s electricity generation capacity reached an all-time high of 2,051.6 MW, thanks to several key projects:
The 600 MW Karuma Hydropower Plant in Kiryandongo
The 4.2 MW Kigwabya Hydropower Plant in Kikuube
The 20 MW Xsabo Nkonge Solar Plant in Mubende
The 4.3 MW Pro Industries Co-generation Plant in Luwero
Off-grid solar systems on Bussi Island and Katirwe
The government is also moving forward with large-scale hydropower projects like the 840 MW Ayago and 392 MW Oriang plants as part of its Vision 2040 energy goals.
Transmission and Distribution Developments:
Several transmission and distribution projects were successfully completed, notably the connection of the West Nile region to the National Grid and the commissioning of the Mirama-Kabale transmission line. Additionally, the Rural Electrification Programme connected over 210 sub-counties to the national grid and added 197,390 new electricity connections, pushing the total to 2,305,296 households.
Power Supply and Reliability:
The Ministry made strides in enhancing power supply reliability by upgrading power lines and substations, and addressing issues such as power theft and infrastructure vandalism through penalties under the Amended Electricity Act (2022).
