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Uganda Electricity prices reset as global fuel costs and dollar pressure push new tariffs for Q3 2026

by Ugnewsline Reporter
July 1, 2026
in Business, News, World
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Uganda’s electricity regulator has introduced new power tariffs for July to September 2026, with price adjustments reflecting rising global fuel costs and continued pressure on the foreign exchange market.
The Electricity Regulatory Authority (ERA) says the changes were driven mainly by an exchange rate of about Shs3,777 to the US dollar and crude oil prices averaging US$114 per barrel.

These external factors have increased the cost of generating and supplying electricity across the country.
ERA Chief Executive Officer Eng. Ziria Tibalwa Waako explained that the new pricing structure aims to balance two competing realities: keeping electricity supply stable while preventing sharp cost increases for consumers already facing economic pressure.
For households, the lifeline tariff remains unchanged, meaning the first 15 units of electricity are still charged at Shs250 per unit for qualifying low-consumption users. However, consumption beyond that continues at higher rates. Usage from 16 to 80 units is charged at Shs779.4 per unit, while electricity used between 81 and 150 units is priced lower at Shs412 per unit as part of an incentive to support energy-saving cooking practices.

Any consumption above 150 units reverts to Shs779.4 per unit.
Small businesses such as shops and salons will continue to face time-based pricing.

Electricity used during peak hours has increased to Shs666.5 per unit, while normal hours are charged at Shs562.1 per unit, reinforcing the cost difference between high-demand and off-peak usage.
Medium-sized industries will pay an average of Shs363.8 per unit, but those that shift production to off-peak hours will benefit from a reduced rate of Shs284.3 per unit. Service providers in this category, including hospitals and hotels, will pay about Shs423.9 per unit.
Large manufacturers continue to receive the lowest industrial tariffs, with extra-large users paying an average of Shs207.7 per unit, dropping further to Shs188.7 per unit during off-peak periods.

This keeps Uganda’s industrial power costs relatively competitive to support production and investment.
ERA says the revised tariffs will remain in force throughout the third quarter of 2026, and consumers are encouraged to manage usage carefully, especially by shifting consumption to lower-cost periods where possible.

Ugnewsline Reporter

Ugnewsline Reporter

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