Kampala, (UG):- Uganda’s Power Regulator, ERA (Electricity Regulatory Authority) Thursday announced a reduction in electricity end-user tariffs for the first quarter of 2025, making power more affordable for consumers.
The new tariffs, effective from January to March 2025, aim to benefit various categories of electricity users, with domestic consumers now eligible for the Lifeline Tariff at Ush 250 per unit.
The Lifeline Tariff, ERA said, is specifically designed for low-income earners, offering affordable electricity for essential domestic use. Under this tariff, customers consuming less than 100 units per month can avail of the Ush 250 rate for the first 15 units consumed monthly.
For other domestic consumers who exceed 100 units monthly, the tariff has been reduced from Ush 796.4 in the fourth quarter of 2024 to Ush 775.7 per unit for the first 80 units.
Additionally, small businesses under the commercial category, including supermarkets and welders, will see a reduction in tariffs from Ush 599.9 to Ush 575.2 per unit. Medium industrial consumers will benefit from a reduced tariff of Ush 417.8 per unit for manufacturers and Ush 434.5 per unit for service providers, down from Ush 448.0.
Large industrial consumers will also enjoy reduced costs, with tariffs dropping to Ush 351.5 per unit for manufacturers and Ush 367.1 per unit for service providers, down from Ush 378.6. Extra-large industrial consumers will see their tariff reduced from Ush 320.1 to Ush 299.1 per unit.
Public amenities such as hospitals and street lighting will benefit from a reduced tariff of Ush 360.0 per unit, down from Ush 370.0 in the previous quarter.
Addressing journalists on Thursday at Uganda Medica Centre in Kampala, ERA Board Chairperson Ms Sarah Wasagali Kanaabi said “These adjustments represent a weighted average reduction of 5.2% compared to the tariffs of Q4 2024, saving consumers Ush 155 billion in electricity costs.”
“The tariff reductions are expected to have a significant economic impact. By lowering electricity costs for commercial and industrial sectors, businesses can reduce production expenses, enhancing competitiveness, profitability, and potential expansion opportunities.”
This, according to Ms Wasagali, aligns with the strategic directives issued in 2021 under the NRM Manifesto, which tasked the Minister of Energy and Mineral Development to reduce electricity costs for manufacturers to 5 cents per unit.
She highlighted the notable changes in the tariff structure which include the recategorization of industrial tariffs to separate manufacturing consumers from service providers.
“This distinction supports the productive use of electricity and fosters growth in the manufacturing sector, a critical driver of Uganda’s socio-economic transformation,” Ms Wasagali explained.
While the 2025 Annual Tariff Review considered key factors such as electricity demand, which is projected to grow at an annual rate of 10.4%, the energy purchased by UETCL is expected to increase from 6,634.54 GWh in 2024 to 7,327.14 GWh in 2025.
ERA said infrastructure developments, including the commissioning of the Karuma Hydro Power Plant and connecting the West Nile subregion to the national power grid, were also integral to the tariff review.
Additional considerations included a tax waiver for Bujagali Energy Limited and Umeme’s capital investments, valued at USD 25 million for 2025, which increased their total investments to USD 700.736 million.
These adjustments underscore ERA’s commitment to ensuring affordable electricity while supporting economic growth and sustainable energy development.
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