Tariff Adjustments to Spur Affordability and Industrial Growth – ERA

The Electricity Regulatory Authority (ERA) has unveiled revised electricity tariffs for the first quarter of 2025, aimed at improving affordability for households and boosting industrial growth.

Speaking at a media briefing held at Golf Course Hotel on Friday, ERA Pricing Manager, Danny Mutyaba, explained the details of the new tariff structure and highlighted key changes to support low-income households and manufacturers.

Affordable Lifeline for Households

Domestic consumers will continue to benefit from a lifeline tariff, with the first 15 units priced at UGX 250 each. This initiative, targeting over 200,000 low-income households, ensures basic electricity access remains affordable. Beyond this, a standard domestic rate of UGX 775.7 per unit applies.

Mutyaba emphasised the regulator’s commitment to balancing affordability with sustainability in the electricity supply industry.

“The lifeline tariff is crucial for protecting vulnerable households, many of whom do not actively voice their needs on platforms like social media but rely on us for fair and sustainable energy access,” said Mutyaba.

Tariffs Designed to Promote Manufacturing

To catalyze industrialisation, a new category separating manufacturing consumers from service providers has been introduced. Manufacturing entities engaged in value addition will enjoy lower tariffs, a move expected to spur economic growth and job creation.

“Electricity is a key driver for Uganda’s socioeconomic transformation. By incentivising manufacturing, we aim to encourage productivity and increase the sector’s competitiveness,” said ERA Executive Director, Eng. Ziria Tibalwa Waako.

Support for Public Amenities and Clean Cooking

Public amenities, including hospitals, street lighting, and educational institutions, will benefit from a reduced rate of UGX 360 per unit, almost half the cost-recovery price.

Additionally, ERA has maintained a special tariff for institutional cooking at UGX 412 per unit for up to 70 units per household. These measures aim to promote clean energy use and reduce dependence on biomass fuels.

Misconceptions and Ensuring Transparency

Mutyaba clarified public concerns about discrepancies in units purchased during multiple transactions. He explained that service fees and lifeline benefits are applied only during the first purchase each month.

Subsequent purchases are billed at standard rates, a system designed to protect low-income consumers while ensuring efficient utility operations.

Regional Competitiveness and Sustainability

Uganda’s electricity tariffs remain competitive within the East African region.

While the country’s lifeline and industrial tariffs are among the lowest, ERA continues to explore measures to reduce costs further, including investments in loss reduction and efficiency improvements.

Mutyaba also highlighted the broader benefits of Uganda’s electricity reforms since 2005, including a substantial increase in installed capacity, network expansion, and improved revenue collection.

The Road Ahead

The revised tariffs will be in effect until March 2025, after which ERA will reassess the structure as Uganda Electricity Distribution Company Limited (UEDCL) takes over distribution operations from Umeme Limited.

This transition, scheduled for April 1, 2025, is expected to introduce new operational efficiencies and tariff considerations.