New Electricity Fees Leave Ugandans In Tears!! See Why Most Ugandans Will Adopt Solar After UMEME Exit

On April 1, 2025, the Electricity Regulatory Authority (ERA) announced updated power tariffs as the Uganda Electricity Distribution Company Limited (UEDCL) took over electricity distribution operations from Umeme.

This marks a significant shift in the country’s energy sector and promises more favorable conditions for consumers, especially large manufacturers.

ERA’s board chairperson, Dr. Sarah Wasagali Kanaabi, confirmed that the revised tariffs, which will be applicable from April to June 2025, are part of the ongoing quarterly adjustments. These revisions are the result of extensive reviews and public consultations.

For domestic customers, the lifeline tariff will remain at Shs250 per unit for those consuming up to 100 units. However, any consumption beyond this threshold will be charged at the domestic tariff of Shs756.2 per unit.

Meanwhile, commercial consumers will pay Shs546.4 per unit, and industrial tariffs have been restructured to favor manufacturers.

Medium industrial customers will pay Shs355.1 per unit, while the extra-large industrial tariffs are set at Shs203.6 per unit. The revised rates are expected to provide relief to large industries, which have long faced high electricity costs.

Dr. Wasagali also noted that the domestic cooking tariff of Shs412 per unit remains in place to encourage electricity use for cooking between the 81st and 150th unit of consumption.

The new tariffs reflect ongoing measures to reduce electricity costs for manufacturers, with UEDCL being held to ambitious growth targets.

The exit of Umeme, whose previous investments played a role in driving up electricity prices, is expected to result in gradual tariff reductions. ERA spokesperson Julius Wandera emphasized that these changes aim to reduce electricity costs for manufacturers, a key driver of the country’s economic growth. Notably, the targeted tariff of 0.5 US cents per unit for large manufacturers has now been achieved under the new tariff structure.

These tariff adjustments are part of a broader strategy to stimulate industrial growth, improve energy accessibility, and align Uganda’s electricity pricing with global economic factors, including inflation and exchange rates.