The Electricity Regulatory Authority (ERA) has reaffirmed its commitment to transparency and efficiency as Uganda’s electricity sector undergoes significant reforms.
Speaking at a media engagement held on January 24, 2025, at Golf Course Hotel, Kampala, ERA Chief Executive Officer Eng. Ziria Tibalwa Waako provided updates on critical transitions, tariffs for adjustments, and new reforms aimed at improving service delivery and achieving sustainability in the energy sector.
Eng. Waako highlighted the impending retransfer of the electricity distribution network from Umeme Limited to the Uganda Electricity Distribution Company Limited (UEDCL) at the end of Umeme’s concession in March 2025. She noted that this transition aligns with the government’s decision not to renew expiring electricity distribution concessions, marking a significant milestone in the sector’s evolution.
“To date, similar transitions have been completed successfully, including the handover of networks managed by Ferdsult Engineering Services Limited, Bundibugyo Energy Cooperative Society (BECS), and others to government-owned entities like UEDCL and Uganda Electricity Generation Company Limited (UEGCL). We are committed to ensuring a seamless and professional transition that prioritizes staff interests while maintaining uninterrupted service delivery,” Eng. Waako assured.
She noted that previous transitions retained over 98% of staff, emphasizing the commitment to workforce welfare, professional growth, and institutional knowledge preservation.
Eng. Waaki added that the Ministry of Finance is working closely with the Auditor General’s office to finalize the buyout process for Umeme Limited, ensuring a smooth retransfer of the distribution network. ERA Chief Executive Officer, Eng. Ziria Tibalwa Waako Newly Approved Tariffs for 2025
The CEO also announced a weighted average reduction of 5.2% in electricity tariffs for the first quarter of 2025 compared to Q4 2024. This decrease, approved during ERA’s 419th meeting in December 2024, is expected to reduce electricity service costs by Ush 155 billion.
Notable tariff changes include:
Recategorization of Industrial Tariffs: Medium and large industrial consumers have been split into two categories to distinguish manufacturers from service providers, fostering growth in the manufacturing sector.
Creation of a Public Amenities Tariff: Aimed at reducing costs for facilities such as hospitals and street lighting, this category supports social services while aligning with Environmental, Social, and Governance (ESG) priorities.
Tariff Rebasing Post-March 2025: Following UEDCL’s takeover, tariffs will be adjusted to reflect the company’s operational framework, including its expanded service territory and customer base.
Media’s Role in Sector Transparency
Acknowledging the vital role of the media, Eng. Waako called for continued collaboration in disseminating accurate and timely information to electricity consumers and the general public. “An objective, free, informed, and skilled media is crucial for socio-economic development,” she noted, adding that such partnerships enhance public discourse and accountability.
Public Engagement and Feedback
The tariff review process involved significant public participation, including a hearing held in December 2024 in Lira City, attended by 893 stakeholders, both physically and virtually. Participants included manufacturers, grain millers, and representatives from the Uganda National Chamber of Commerce.
Eng. Waako reaffirmed ERA’s commitment to transparency, efficiency, and collaboration in building a sustainable and resilient electricity sub-sector for Uganda. She also encouraged stakeholders to embrace the opportunities presented by these developments.
Vianney Mutyaba, the Manager Pricing at ERA, detailed remarkable improvements in Uganda’s electricity sub-sector over the years. He cited significant strides in revenue collection, grid availability, and infrastructure investment as key achievements in the sector’s transformation.
Revenue Collection: From 20% Loss to 99% Efficiency
Mutyaba highlighted a dramatic improvement in revenue collection efficiency within the electricity distribution network.
“In 2005, Uganda faced a dire situation where 20% of revenue was never collected, representing a substantial loss to the sector. However, as of today, we are collecting 99% of all revenue generated within the electricity sub-sector,” he said.
This turnaround, he noted, is a testament to the implementation of robust billing systems, tighter enforcement measures, and efforts to curb electricity theft. The progress has significantly strengthened the financial health of the sector, enabling continued investments in service delivery and infrastructure expansion.
Improved Grid Availability
On-grid reliability, Mutyaba pointed to significant advances over the past two decades. “In 2004, the availability of Uganda’s electricity grid stood at 90%, meaning there were frequent interruptions that hampered service delivery. Today, the grid availability rate has risen to an impressive 98.2%,” he reported.
This improvement reflects sustained efforts in maintaining and modernizing the grid infrastructure, reducing downtime, and ensuring consistent electricity supply to consumers. Mutyaba credited the enhanced grid reliability to collaboration between ERA, utility providers, and government agencies.
Massive Investments in Generation Capacity
Mutyaba also spoke about the enormous financial commitments made to bolster Uganda’s electricity generation capacity. Since the sector’s restructuring, over $4.6 billion has been invested in generation projects, with the bulk sourced from foreign aid. Additionally, the Ugandan government has contributed $2.2 billion to strengthen domestic energy production.
“These investments have been pivotal in expanding Uganda’s generation capacity, supporting socio-economic development, and ensuring a stable energy supply for industrialization and urbanization,” Mutyaba explained.
Regional Competitiveness in Tariffs
Addressing concerns about electricity tariffs, Mutyaba reaffirmed ERA’s commitment to ensuring Uganda remains competitive within the East African region.
“We are doing our best to align Uganda’s tariffs with regional standards. This is critical to attracting investment, supporting industrial growth, and making electricity affordable for both domestic and commercial consumers,” he said.
He emphasized the importance of balancing affordability with the financial sustainability of service providers, ensuring the sector remains viable while meeting the needs of consumers.
Second Generation Reforms: Building a Modernized Energy Sector
ERA’s Director of Legal Services, Mr Harold R. Obiga, outlined the second-generation reforms to modernise Uganda’s electricity sector. He highlighted seven key focus areas:
Consolidation and Distribution Concession Obiga explained that the reforms prioritize the consolidation of electricity distribution under the Uganda Electricity Distribution Company Limited (UEDCL). This move follows the decision not to renew Umeme’s concession, aiming to improve service delivery and align operations with national priorities.
Open Market Development The reforms seek to create a more competitive electricity market, allowing private players to participate in various capacities while maintaining strict regulatory oversight.
Direct Sale of Electricity Under negotiated agreements, the legal framework is being adjusted to enable direct electricity sales by generation companies to high-demand consumers, such as industries.
Export and Import of Power Uganda is strengthening its capacity to export surplus electricity to neighbouring countries while ensuring sufficient domestic supply. Cross-border energy trading is key to regional integration and economic growth.
Balance of Public and Private Participation The reforms aim to strike a balance between public and private sector involvement, fostering collaboration to maximize efficiency and innovation while safeguarding public interests.
Independent Power Transmission Obiga emphasized the importance of creating an independent transmission system operator to ensure neutrality and efficiency in transmitting electricity across the grid.
Market Design and Development The design of Uganda’s electricity market is being enhanced to encourage investment, promote efficiency, and ensure affordability. This involves introducing mechanisms to address emerging challenges and capitalize on opportunities.
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