Published on 01/04/2025
Uganda’s electricity regulators are have assured consumers and Ugandans at large of better value for their money—eliminating any confusion between ERA and error.
Following the transfer of power distribution from Umeme to Uganda Electricity Distribution Company Limited (UEDCL) on March 31, the Electricity Regulatory Authority (ERA) has revealed that Ugandans will now receive more electricity for the same cost, with benefits like rebranding to “Light” and reduced power tariffs.
Dr. Sarah Wasagali Kanaabi, ERA’s chairperson, highlighted that the new tariff structure is designed to make electricity more affordable for Ugandans. She explained, “We’ve adjusted the rates to reflect inflation, exchange rates, and changes in electricity supply conditions.”
A common concern for many Ugandans is: how much electricity will Shs10,000 now purchase compared to before?
What You Get for Shs1,000:
Under UEDCL’s new pricing:
- The first 15 units in a month (lifeline rate): Shs250 per unit
- Shs1,000 gives you 4 units
- Shs10,000 gives you 40 units
- After the first 15 units: Shs756.2 per unit
- Shs1,000 gives you 1.3 units
- Shs10,000 gives you approximately 13 units
This pricing structure means that smaller consumers will benefit most from the lower lifeline rate, while those with higher consumption will face higher costs per unit.
Impact on Businesses and Factories:
- Large industries (off-peak hours): Shs231.6 per unit
- Public hospitals and street lighting: Shs360 per unit
For households using a single-phase meter, the first 15 units purchased in a month will now cost just Shs250 per unit—cheaper than the previous rates under Umeme.
With Shs10,000, you can now purchase 40 units in the first month, compared to 30–35 units under Umeme. However, if additional power is purchased later in the month, the price per unit increases after the first 15 units, with each subsequent unit priced at Shs756.2. This means that consumers who use less power will benefit more from the reduced lifeline rates.
Related
End Of An Era: UMEME Officially Hands Over Electricity Distribution To UEDCL After 20-Year Concession – National News Express
Businesses, particularly large industries, will see reduced energy costs, with off-peak rates set at Shs231.6 per unit, helping to lower production expenses. Public hospitals and streetlights will pay Shs360 per unit, ensuring that vital services remain affordable.
Dr. Kanaabi emphasized that these changes are designed to reduce the cost of doing business and foster industrial growth. “Lower energy costs for factories will reduce production expenses, which could lead to lower prices for goods and services,” she stated.
Ugandans are encouraged to check their electricity bills to see the new rates and visit the ERA website at www.era.go.ug or contact their customer service for further details. The new tariffs take effect from April to June 2025.
