ERA Clarifies Electricity Tariffs Amidst Consumer Concerns

Recent social media discussions alleging an increase in electricity tariffs have been addressed by the Electricity Regulatory Authority (ERA). Consumers had reported that Shs10,000 was purchasing fewer electricity units, leading to speculation of a price hike.

ERA has clarified that the approved electricity tariffs for the fourth quarter of 2026 (October to December) have not been altered. The authority explained that the number of units a consumer receives for a fixed amount of money can fluctuate based on several factors, including the specific tariff category they fall under and additional charges.

For domestic consumers, the lifeline tariff allows those using between one and 15 units to pay Shs250 per unit. Those consuming between 16 and 80 units are charged Shs779.4 per unit, while a cooking tariff applies to consumption between 81 and 150 units at Shs412 per unit. Consumption above 151 units also costs Shs779.4 per unit.

The lifeline tariff, in particular, is accessible to domestic users whose average monthly consumption over the preceding six months does not exceed 100 kilowatt-hours. At the lifeline rate of Shs250 per unit, Shs10,000 would purchase 40 units before taxes and other charges are applied. In contrast, at the higher rate of Shs779.4 per unit, the same Shs10,000 would yield approximately 12.8 units before additional fees.

ERA emphasized that these published rates do not include the 18% Value Added Tax (VAT) and a monthly service charge, both of which reduce the amount of money available to purchase electricity units. These additional costs, while impacting the final number of units, do not signify an increase in the base tariff rates themselves.

The authority also outlined industrial electricity tariffs, which vary based on factors like time of day, connection voltage, and demand. These rates are complex and designed to reflect different usage patterns for large-scale consumers.

ERA is responsible for determining and approving electricity tariffs in Uganda, with the Uganda Electricity Distribution Company Limited (UEDCL) responsible for applying these rates to consumers. Tariff reviews are conducted periodically, taking into account economic factors such as inflation, exchange rates, and fuel prices. Approved tariff schedules are publicly accessible.

Source: Nile Post