Power Tariffs Could Rise as Demand Overwhelms Distribution Network

What the report says

Uganda’s Energy Minister Sidronius Okaasai Opolot has warned Parliament that electricity tariffs could rise if demand keeps outpacing the country’s distribution network. According to Nile Post, he told the Natural Resources Committee that power use has recently grown by more than 20% in a year, after rising at roughly 10% annually for several years, while parts of the grid are now under heavy strain.

The minister said several substations are running close to or beyond capacity, including facilities in the Mutundwe and Busunju areas. He also pointed to ageing equipment and limited access to replacement parts as factors behind longer outages, saying these problems could increase the risk of renewed load-shedding. The committee met officials from the Energy Ministry, the Uganda Electricity Distribution Company Limited (UEDCL) and private firms involved in distribution work.

Nile Post reported that the discussion came amid public complaints about frequent blackouts in different parts of the country. Lawmakers also questioned UEDCL’s use of local contractors for electricity distribution projects and raised concerns about whether some firms have enough capacity to deliver. One company mentioned in the proceedings was Orion Transformers, though the article did not clearly establish the status of any allegations tied to it.

The issue matters because Uganda is trying to expand access to reliable, affordable power while managing a grid that is being pushed by growing demand. The article also noted that the government is considering how to prioritize supply for strategic sites, including areas linked to preparations for the 2027 Africa Cup of Nations, which Uganda will co-host with Kenya and Tanzania.