Why Electricity Costs Less at the Start of the Month

(Kampala) – Buying electricity at the beginning of the month grants consumers more units for the same amount of money. This is part of a government initiative aimed at promoting the use of clean energy across the country. Jonan Kiiza, spokesperson for the Uganda Electricity Distribution Company Limited (UEDCL), says the goal is to make electricity accessible and affordable, particularly for low-income households.

The discount is implemented through the Lifeline Tariff under the oversight of the Electricity Regulatory Authority (ERA). This tariff is available to consumers on their first electricity purchase of each new month, offering rates as low as sh250 per unit for the first 8 units under the UEDCL concession. This special rate, which goes for sh2,000, is designed to benefit rural Ugandans, allowing them to affordably power essential services such as lighting, phone charging, and television.

Kiiza explains that the scheme is tailored to meet the needs of low-income users in rural areas who use only minimal electricity for basic domestic purposes. This approach enables people in remote areas to access electricity without facing prohibitive costs. He highlights that, under the Umeme concession, the Lifeline Tariff similarly provides the first 15 units at sh250 each.

According to Kiiza, the Lifeline Tariff is intended to reduce the overall burden of electricity costs on Ugandans, helping to gradually decrease energy expenses nationwide. The government also offers this subsidy to foster the wider use of electricity, which aligns with its objectives to increase clean energy consumption and reduce reliance on less environmentally friendly sources of energy.

However, the discount applies only to the first purchase each month. Subsequent electricity purchases are charged at a standard flat rate, without the initial subsidy. Kiiza notes that for consumers in rural areas, average monthly electricity usage is around 8 units, making the Lifeline Tariff a suitable option for their energy needs at a lower cost.

This initiative reflects the government’s intention to bring affordable energy to even the most remote communities, ensuring that more Ugandans can use clean energy while minimizing financial strain.