JUST IN: Government Reduces Electricity Tariff

By Our Reporter




Government has announced the reduction of electricity tariff of a weighted average of 1.6%.


This was revealed by the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa today, 5th January, 2024 while addressing the media at Uganda Media Center.


“I congratulate you all for the announced weighted average tariff reduction of 1.6% that speaks to the government’s efforts for progressive gradual end-user tariff reduction to support industrialization for socio-economic transformation and improved welfare,” Nankabirwa said.


The Tariff schedule for the Second Quarter of 2023 saw a reduction in Tariffs for Domestic Consumers to UGX 805.0 from UGX 808.9, Commercial Consumers to UGX 611.8 from UGX 624.6, Medium Industrial Consumers to UGX 461.8 from UGX 472.3, Large Consumers to UGX 384.4, from UGX 386.3.


Domestic Consumers will now be paying 792.1 per Unit, while Commercial consumers will pay 598.9, Medium Industrial Consumers will pay 448.9 and Large Consumers will now pay 371.5.

The hybrid framework has seen new customer connections increase

Nankabirwa also revealed that the hybrid customer connection financing Framework announced in December, 2022 has already generated 36,855 applications and 27,724 have already been connected to electricity supply as of December 2023.


This Frame work saw the government reducing the cost of a no-pole new customer connection from UGX 720,883 to UGX 470,000 through a subsidy of UGX 250,883 for each no-pole connection.


In addition to the subsidy, the Government of Uganda, through the Uganda Development Bank, provided a credit line of UGX 270,000 per new connection for those who are unable to pay a lump sum of UGX 470,000.


Ugandans whose houses are located near an electricity pole can now make a down payment of UGX 200,000 to get connected to electricity and clear the balance of UGX 270,000 through a 15% part payment deducted on their energy purchases over a period of eight years.

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