Uganda Reports 14% Drop in Electricity Tariffs Following Karuma Hydropower Project Launch
Uganda's Electricity Regulatory Authority has announced a 14% reduction in electricity tariffs, lowering the average cost to 395.8 shillings per kilowatt-hour, largely due to increased output from the Karuma Hydropower Project and a restructuring of the distribution network. While the decrease benefits consumers, it has also led to service disruptions, prompting targeted investments to improve reliability. The new tariff structure includes protections for vulnerable groups and discounted rates for essential services.
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Uganda's Electricity Regulatory Authority announced a 14% decrease in average power costs over the past year, with the end-user tariff dropping to 395.8 shillings per kilowatt-hour from 459.8 shillings. This reduction is attributed to increased generation from the Karuma Hydropower Project and a restructuring of the distribution network, now managed by Uganda Electricity Distribution Co.
Ltd. after Umeme Ltd.'s concession expired. Despite benefits for consumers, the transition caused service disruptions, prompting targeted investments to address outages. Tariff reforms include protections for vulnerable consumers, a lifeline rate of 250 shillings for the first 15 units, and a discounted rate of 360 shillings for hospitals and street lighting.
Uganda's installed generation capacity reached 2,098 megawatts, with 65 megawatts expected by late 2026. The national grid serves 2.52 million customers, and Uganda is increasingly involved in the Eastern African Power Pool.
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