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Home Big Story

UEDCL Holds Electricity Rates Steady as Sector Benefits From Lower Costs

Davis by Davis
2026/01/03
in Big Story, Business, Business, News
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UEDCL Holds Electricity Rates Steady as Sector Benefits From Lower Costs
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The Uganda Electricity Distribution Company Limited (UEDCL) has published the approved electricity tariffs for the first quarter of 2026 (January–March), following approval by the Electricity Regulatory Authority (ERA).

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The new tariff schedule covers all customer segments—domestic, commercial, industrial, and public institutions—and seeks to maintain a balance between consumer affordability and the sustainability of electricity distribution services.

Notably, the tariffs remain unchanged from the previous quarter, ensuring price stability for households, businesses, and manufacturers as government efforts to keep electricity affordable continue.

Under the domestic category, low-consumption users will continue to benefit from a lifeline tariff of UGX 250 per kilowatt-hour for the first 15 units. Commercial and industrial consumers will remain on time-of-use pricing, a structure intended to encourage electricity use during off-peak hours and ease pressure on the grid.

Approved tariff highlights (UGX/kWh):

  • Domestic (Code 10.1):
    Lifeline (first 15 kWh): 250
    16–80 kWh: 756.2
    81–150 kWh: 412
    Above 150 kWh: 756.2
  • Commercial (Code 10.2):
    Peak: 650.8
    Shoulder: 546.4
    Off-peak: 414
    Average: 546.4
  • Medium Manufacturing (Code 20.1):
    Average: 355.1
  • Large Manufacturing (Code 30.1):
    Average: 300.4 (Block 1); 282.9 (declining block)
  • Extra-Large Manufacturing (Code 40.1):
    Average: 203.6

ERA has also introduced a new category for extra-large service consumers (Code 40.2), with an average tariff of UGX 219.3 per kilowatt-hour.

The tariffs apply to postpaid electricity bills issued from January and to prepaid (Yaka) purchases made during the quarter. Fixed charges, connection fees, and penalties related to power theft remain unchanged.

The Q1 2026 tariffs are identical to those applied in the October–December 2025 period, offering predictability for consumers.

Over the course of 2025, however, electricity prices declined markedly. The weighted average end-user tariff dropped from about UGX 460 per kWh in the first quarter of 2025 to roughly UGX 396 per kWh by the end of the year. This reduction has been attributed to lower system costs, a stronger exchange rate environment, and increased hydropower generation following the commissioning of the Karuma plant.

Earlier tariff cuts—including a 5.2 percent reduction in early 2025 and further mid-year adjustments—have played a key role in improving household affordability and supporting growth in the manufacturing sector.

Tags: ERAFeaturedNewsUEDCLugandaUganda News
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