ERA Chief Executive Officer Eng. Ziria Tibalwa Waako
Ugandans will pay revised electricity tariffs for the third quarter of 2026 after the Electricity Regulatory Authority (ERA) approved a new tariff structure, citing rising global fuel prices and movements in the foreign exchange market as key drivers behind the changes.
The new tariffs, which take effect from July to September 2026, will apply to all consumers supplied by the Uganda Electricity Distribution Company Limited (UEDCL).
ERA said the adjustments were necessary to reflect changes in the cost of generating and supplying electricity while ensuring that consumers continue to access reliable power.
The regulator based the review on key economic indicators, including an exchange rate of Shs3,777.81 against the US dollar and an international crude oil price of US$114.55 per barrel, according to the June report by OPEC.
ERA Chief Executive Officer Eng. Ziria Tibalwa Waako said the authority considered the pressure created by global market conditions while maintaining a balance between electricity affordability and supply reliability.
“While global fuel prices and exchange rate movements continue to put pressure on costs, our goal remains to ensure a reliable power supply while safeguarding consumer interests,” she said.
Households retain lifeline support
Domestic consumers will continue to benefit from a subsidised lifeline tariff aimed at protecting low-income households.
Consumers whose average monthly electricity use over six months does not exceed 100 units will continue paying Shs250 per unit for the first 15 units purchased each month.
Electricity consumption between 16 and 80 units will cost Shs779.4 per unit, while households using electricity for cooking will pay a lower rate of Shs412 per unit for consumption between 81 and 150 units.
Any usage above 150 units will attract a tariff of Shs779.4 per unit.
ERA said the structure is designed to encourage efficient electricity use while supporting households that depend on small amounts of power.
Businesses urged to manage consumption
Small businesses, including shops, salons and workshops, will continue operating under time-of-use tariffs, where electricity costs vary depending on demand periods.
During peak hours, commercial users will pay Shs666.5 per unit, while the standard rate during normal hours will be Shs562.1 per unit.
Medium-scale industries will pay an average tariff of Shs363.8 per unit, with manufacturers that shift production to off-peak hours benefiting from a reduced rate of Shs284.3 per unit.
Medium-sized service providers such as hotels and hospitals will pay an average of Shs423.9 per unit.
Industries maintain preferential rates
Large industrial consumers will continue to receive lower electricity tariffs as part of efforts to support manufacturing growth and competitiveness.
Extra-large industrial users will pay an average of Shs207.7 per unit, with the rate falling further to Shs188.7 per unit during off-peak periods.
The industrial tariff structure is intended to encourage manufacturers to increase production while managing energy costs.
Consumers encouraged to use power efficiently
ERA said the revised tariffs reflect the wider impact of global economic trends on Uganda’s electricity sector.
Households can reduce their bills by remaining within subsidized consumption levels, while businesses and industries can lower costs by shifting energy-intensive activities to periods when demand is lower.
The new tariff structure will remain in effect throughout the third quarter of 2026, covering electricity consumption from July through September.
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