By Under the new pricing, domestic consumers who qualify for the lifeline tariff—those using up to 100 units—will pay Shs250 per unit. Other domestic consumers exceeding this threshold will pay a cost-reflective tariff of Shs756.2 per unit.
For commercial users, the tariff is set at Shs546.4 per unit, while medium industrial consumers will pay Shs355.1 per unit. Large-scale manufacturing industries will be charged Shs412.5 per unit.
Additionally Large industrial customers will see a two-block tariff structure, block One will be charged Shs300.4 per unit whereas block Two, which benefits from a declining block tariff, will pay Shs282.9 per unit. For other large consumers, the tariff will be Shs348.7 per unit.
The extra-large industrial consumers will now pay Shs203.6 per unit. Public institutions such as hospitals, universities, and street lighting will be charged Shs360 per unit.
A special domestic cooking tariff of Shs412 per unit will remain in place to encourage households to use electricity for cooking between the 81st and 150th unit consumed each month. Other service charges, including connection fees, remain unchanged.
The new electricity tariffs announced by the Electricity Regulatory Authority (ERA) will run for a period of three months from April to June 2025, following the official transition of power distribution operations from Umeme to the Uganda Electricity Distribution Company Limited (UEDCL).
ERA’s board chairperson Dr. Sarah Wasagali Kanaabi yesterday during the handover revealed the adjusted tariffs, emphasizing that they were determined after a thorough review process, including public feedback. The tariff structure aims to support economic growth while encouraging the use of electricity for domestic and industrial purposes.
ERA’s tariff revisions are based on several economic and market-driven factors. According to Dr. Wasagali, Uganda’s electricity demand is projected to grow by 10.4 percent annually in 2025, necessitating adjustments to meet supply and efficiency needs.
Additionally, ERA’s quarterly tariff adjustment methodology—first implemented in 2014—will continue to be applied. This model considers inflation, foreign exchange rates, international fuel prices, and other approved costs.
“The assumption is that UEDCL’s tariff performance targets for 2025 will be maintained in line with the license issued to them for electricity distribution,” Dr. Wasagali said.
She also noted that ERA will keep reviewing electricity pricing for public amenities such as hospitals, street lighting, and institutional cooking to ensure fair categorization of energy consumers based on their specific needs.
On the other hand, ERA’s Director of Communications, Mr. Julius Wandera, also highlighted that one of the major factors behind the tariff reduction is the exit of Umeme. Previously, Umeme’s investments significantly contributed to higher tariffs. With UEDCL now in charge, tariffs are expected to decline gradually, particularly benefiting extra-large manufacturers.
“Our goal has been to bring manufacturers’ tariffs down to 0.5 US cents per unit, and this has now been achieved with UEDCL’s new tariff structure,” Mr. Wandera said.
