Uganda announces power tariff reduction for consumers

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Canola plants blossom in a field beneath electricity pylons, as South African utility Eskom experiences frequent power outages, near Cape Town, South Africa, September 8, 2022. REUTERS/Esa Alexander
Source: REUTERS/Esa Alexander

Uganda’s electricity authorities on Friday announced a power tariff reduction for electricity consumers in an effort to spur economic growth.

The Electricity Regulatory Authority (ERA), a state agency that regulates the power sector in the country, said in a statement issued in the national capital of Kampala that the average annual base electricity end-user tariff for 2024 has been reduced to 1.6 percent, saving electricity consumers 40.3 billion Ugandan shillings (about 10.6 million U.S. dollars).

The agency said the cost of electricity for the first 15 units for domestic consumers will remain at 250 shillings per unit, and above the lifeline of 16-80 units, it has been reduced to 1 percent, now costing 797 shillings.

The small- and medium- industries will have a tariff reduction of 1.8 percent and 2.8 percent, respectively, in an effort to reduce the cost of production.

ERA announces new tariff rates at the beginning of every year.

Ruth Nankabirwa, minister of energy and mineral development, told reporters here that the initiative to reduce power tariff rates is the government’s efforts to support industrialization for socio-economic transformation and improved welfare of the society.

“The effort to reduce the end-user electricity tariff remains a key aspiration of the NRM (ruling National Resistance Movement) government as an enabler of industrialization for social and economic transformation,” said Nankabirwa.

“I call upon Ugandans to take up the opportunities the electricity sub-sector presents in this new year, such as investment opportunities, reduced costs of connection, and tariff incentives, to meet their socio-economic aspirations,” she said.

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