Chairperson of the Electricity Regulatory Authority, Dr. Sarah Kanaabi Wasagali, Highlights Key Achievements and Future Outlook for Uganda’s Electricity Sub-sector and Announces Electricity Tariffs

By John Kusolo

Dr. Sarah Kanaabi Wasagali, Chairperson of the Electricity Regulatory Authority (ERA), has shed light on the remarkable strides achieved in Uganda’s electricity sub-sector in 2024, while setting the stage for a more innovative and consumer-centered energy landscape in 2025. Speaking during her address to the Honorable Minister and members of the media, Dr. Wasagali emphasized the Authority’s commitment to ensuring affordable, reliable, and sustainable electricity services. This, she said, aligns with Uganda's socio-economic transformation agenda.

Electricity Sub-sector Performance in 2024

Dr. Wasagali highlighted several milestones achieved in the electricity sub-sector in 2024:

Commissioning of Karuma Hydropower Plant:

The full commissioning of the Karuma Hydropower Plant in August 2024 added substantial capacity to Uganda’s energy mix. This development has significantly boosted electricity generation, supporting industrial growth and rural electrification.

West Nile Grid Connection:

The connection of the West Nile region to the national grid in August 2024 marked a major step toward achieving universal access to electricity. This initiative has transformed the lives of residents and businesses, enhancing productivity and service delivery in the region.

Macroeconomic Stability:

The Uganda Shilling appreciated by 0.7% against the US Dollar, easing the cost of electricity imports and bolstering the sub-sector’s financial stability. The favorable exchange rate has allowed the Authority to reduce end-user tariffs, benefiting consumers.

Tariff Rebasing Preparations:

Preparations are underway for a tariff rebase in 2025 to reflect the operational parameters of the Uganda Electricity Distribution Company Limited (UEDCL), which will assume electricity distribution on April 1, 2025, after the expiration of Umeme Limited's concession.

The ERA upheld its commitment to transparency and public participation in the tariff review process. A public hearing held on December 12, 2024, at Margarita Palace Hotel in Lira City, drew 893 participants, including political leaders, electricians, small-scale industry operators, manufacturers, and members of the media.

*Approved Electricity Tariffs for Q1 2025*

Dr. Wasagali announced the Authority’s approval of base end-user electricity tariffs for the first quarter of 2025, reflecting a weighted average reduction of 5.2%. These reductions, totaling UGX 155 billion, aim to stimulate economic growth while easing the financial burden on consumers. The tariffs for key categories are as follows:

Lifeline Tariff: UGX 250 per unit for qualifying domestic consumers.

Domestic Tariff: UGX 775.7 per unit.

Commercial Tariff: UGX 575.2 per unit.

Medium Industrial Tariffs:

Manufacturing: UGX 417.8 per unit.

Service: UGX 434.5 per unit.

Large Industrial Tariffs:

Manufacturing: UGX 351.5 per unit.

Service: UGX 367.1 per unit.

Extra-Large Industrial Tariff: UGX 299.1 per unit.

Public Amenities Tariff: UGX 360.0 per unit.

Notable Developments for 2025

Dr. Wasagali outlined transformative changes that will take effect in 2025:

Recategorization of Industrial Tariffs:

Medium and large industrial categories will now distinguish between manufacturing and service-based consumers, encouraging productive electricity use and supporting the growth of Uganda’s manufacturing sector.

Introduction of the Public Amenities Tariff:

This new tariff category aims to ensure affordable electricity for critical public services such as hospitals and street lighting, underscoring the Authority’s focus on Environmental, Social, and Governance (ESG) priorities.

Declining Block Tariffs:

To encourage domestic energy use, the declining block tariff structure will continue, particularly for large and extra-large industrial consumers. The domestic cooking tariff will also remain at UGX 412 per unit for consumption between 81 kWh and 150 kWh per month.

Tariff Rebasing Post-March 2025:

With UEDCL assuming distribution operations, tariffs will be restructured to accommodate its operational requirements, ensuring efficiency and sustainability in service delivery.

Dr. Wasagali extended her gratitude to the Honorable Minister and His Excellency, the President of Uganda, for their unwavering support of the energy sector. She lauded the collaborative efforts of stakeholders, including political leaders, industry players, and the general public, in driving the electricity sub-sector forward.

In her concluding remarks, Dr. Wasagali reaffirmed ERA’s commitment to enhancing transparency, efficiency, and innovation in Uganda’s energy landscape.