Investment boost: Uganda slashes power tariffs for 2025

Uganda’s power regular, the Electricity Regulatory Authority (ERA), has announced a 5.2-percent reduction in electricity end-user tariffs.

The reduction will see domestic consumers paying less by 20 shillings per unit of electricity, a reduction from the 796.4 shillings previously charged. For domestic consumers, the first 15 units are sold at a lifeline charge of 250 shillings per unit to cushion the lowest-consuming customers.

A new category of medium-scale manufacturers, like cottage industries, will pay 417.8 shillings per unit of power consumed, while service industries like hotels will pay 434.5 shillings.

Large industrialists who consume power beyond 500,000 units will buy each unit at between 333.9 shillings and 351.5 shillings, down from the previous 362.2 to 378.6 shillings, paying less by 27.1 shillings.

Extra-large industrialists, like steel and cement factories, will pay 299.1 shillings per unit, a reduction of 21 shillings from the previous 320.1 shillings.

The rate for public amenities category like street lighting, police, health services, and universities, is 360 shillings, down from 370 shillings.

The Executive Director of the Uganda Manufacturers Association, Dr. Ezra Muhumuza Rubanda welcomed the power tariff deductions. Still, he proposed that the government consider a marginal tariff reduction where ERA sets a threshold for individual manufacturers so that whoever surpasses it can consume additional power units at a lower rate.

According to Dr. Rubanda, this would translate into a much reduced actual cost of production and subsequently reduced commodity prices.

New power tariffs for January to March 2025

NUNBERCATEGORY OF CONSUMERSOCT – DEC 2024JAN – MAR 2025
1.DOMESTIC796.4775.7
2.COMMERCIAL599.9575.2
3.MEDIUM INDUSTRIAL (MANUFACTURING)448417.8
4.MEDIUM INDUSTRIAL (SERVICES)434.5 (new)
5.LARGE INDUSTRIAL (MANUFACTURING BLOCK 1)378.6351.5
6.LARGE INDUSTRIAL (MANUFACTURING BLOCK 2)362.2333.9
7.LARGE INDUSTRIAL (SERVICES)367.1 (new)
8.EXTRA-LARGE INDUSTRIAL (BLOCK 1)320.1299.1
9.EXTRA-LARGE INDUSTRIAL (BLOCK 2)296.1284.2
10.PUBLIC AMENITIES370360

For more details on power connections for investment projects, contact the Uganda Investment Authority:

www.ebiz.go.ug

ebiz@ugandainvest.go.ug  

info@ugandainvest.go.ug  

+256-414-301000

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