The Electricity Regulatory Authority (ERA) has slashed electricity tariffs for the first quarter of 2025.
Speaking at the Uganda Media Center on Thursday, ERA Chairperson Dr. Sarah Kanaabi Wasagali said consumers can now look forward to cheaper power bills starting this January, with a weighted average drop of 5.2%.
The new rates bring relief to households and businesses alike. Lifeline domestic users will pay a mere Ush 250 per unit, while regular domestic consumers are charged Ush 775.7 per unit. Commercial businesses now pay Ush 575.2 per unit, and large-scale manufacturers get a bargain at just Ush 351.5 per unit.
The big surprise is that public amenities like hospitals and streetlights get their own category, paying only Ush 360 per unit.
“This is a big win for Ugandans. Affordable power is key to economic growth and social welfare.”Kanaabi stated
According to Kanaabi, come March 31, 2025, Umeme Limited’s 20-year grip on electricity distribution ends.
She notes that the Uganda Electricity Distribution Company Limited (UEDCL) will step in, promising a fresh start for the sector. She states that ERA plans to rebase tariffs to fit UEDCL’s operational model, signaling big changes ahead.
This shake-up follows the commissioning of the Karuma Hydro Power Plant and the long-awaited connection of West Nile to the national grid, both achieved in August 2024. These developments have boosted Uganda’s electricity supply, enabling the new reforms.
ERA also promises fairer treatment for manufacturers, with industrial tariffs now split into manufacturing and service-based categories. Large manufacturers can look forward to even lower rates under the declining block tariff structure, aimed at boosting production.
“2025 is the year of change,” Dr. Kanaabi said. “We’re not just cutting costs; we’re building a stronger energy future.”
According to Kanaabi, Ugandans played a big role in shaping these changes. Over 893 people attended a public hearing in Lira City last month to voice their opinions. From small-scale businesses to political leaders, everyone had a say.
With cheaper power, tailored rates for industries, and a new player stepping in, all eyes are now on UEDCL as it gears up to take over the reins and steer Uganda electricity docket.
