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Masibe Asy
EQUITY
360.0 per
The tariff for medium industrial consumers has been reduced from Ush 448.0 to Ush 417.8 per unit for manufacturing and from Ush 448.0 to Ush 434.5 per unit for service consumers. For large industrial consumers, the tariff decreased from Ush 378.6 to Ush 351.5 per unit for manufacturing and from Ush 378.6 to Ush 367.1 per unit for service consumers. Extra- large industrial consumers now pay Ush 299.1 per unit, down from Ush 320.1 in the previous quarter. The tariff for public amenities, including hospitals and street lighting, has also been lowered from Ush 370.0 to Ush unit. These changes represent a 5.2% overall reduction in tariffs, saving Ush 155bn in electricity service delivery costs, according to ERA Chairperson Sarah Wasagali Kanaabi. Power tariff reductions are expected to lower production costs, particularly in the commercial and industrial sectors, boosting competitiveness, profitability, and potential expansion. This aligns with the 2021 directive to reduce electricity costs for manufacturers to 5 cents per unit, as part of the NRM Manifesto’s strategic goals. Significant changes for Q1 2025 include the recategorization of industrial tariffs, distinguishing manufacturing consumers from service providers, which is aimed at promoting the manufacturing sector’s growth.
The 2025 Annual Tariff Review took into account factors like a projected 10.4% annual growth in electricity demand and the expiration of Umeme Limited’s concession on March 31, 2025, after over 20 years of service. ERA set tariffs considering factors like inflation, exchange rates, fuel prices, and approved costs. The Uganda Shilling strengthened by 0.7%, moving from Ush/USD 3,715.82 to Ush/USD 3,689.1 by November 2024. The commissioning of the Karuma Hydro Power Plant in August 2024 and the West Nile subregion’s connection to the national grid were also considered. Other factors included the Bujagali Energy Limited tax waiver and Umeme’s capital investments. Umeme’s qualifying investments for 2025 total USD 25 million, increasing its gross investments from USD 675.736 million in 2024 to USD 700.736 million in 2025.
