Uganda government cuts electricity tariffs by 5.2%

Uganda’s power regulator, the Electricity Regulatory Authority (ERA), has announced a 5.2% reduction in electricity end-user tariffs for the first quarter of 2025.

The reduced tariffs, which take effect from January to March, aim to make electricity more affordable for domestic, commercial, and industrial users.

ERA Chairperson Sarah Wasagali Kanaabi revealed the revised tariffs on Friday, highlighting benefits for various consumer categories.Under the new tariff structure, qualifying domestic consumers will pay 250 Ugandan shillings (Ush) per unit for the first 15 units consumed each month, known as the Lifeline Tariff.

This subsidized rate is designed to support low-income earners by ensuring access to essential electricity for basic domestic needs.

Other domestic consumers will see a decrease in the cost per unit from Ush 796.4 to Ush 775.7.

Commercial consumers, such as small enterprises, will now pay Ush 575.2 per unit, down from Ush 599.9 in the previous quarter.

Medium industrial consumers will benefit from a rate reduction to Ush 417.8 per unit, while large industrial consumers will pay Ush 351.5 per unit for manufacturing and Ush 367.1 for services.

Public facilities, including hospitals and street lighting, will also benefit from the reduced tariff, which has been slashed from Ush 370.0 per unit to Ush 360.0.

The ERA’s decision is expected to provide relief to consumers and support economic growth in the country.