Energy Minister Sidronius Okaasai Opolot has warned that electricity tariffs could increase as demand surges beyond the capacity of distribution infrastructure, with ageing equipment also raising the risk of renewed load-shedding.
Electricity tariffs could rise as Uganda struggles to meet rapidly growing demand amid overloaded substations, ageing distribution equipment and persistent power outages, State Minister for Energy Sidronius Okaasai Opolot has warned.
Okaasai told Parliament’s Natural Resources Committee that electricity demand, which had been growing at about 10% annually for several years, increased by more than 20% over the past year, putting additional pressure on the distribution network.
The committee, chaired by Kazo County MP Dan Kimosho, met officials from the Ministry of Energy and Mineral Development, the Uganda Electricity Distribution Company Limited (UEDCL) and representatives of companies involved in electricity distribution and equipment supply.
The meeting followed growing public complaints about persistent power outages in several parts of the country.
Okaasai said 12 substations were operating at more than 80% of their capacity, while Mutundwe and Busunju substations were operating well above their rated capacity.
“Honourable members, whereas our demand growth rate has been 10% per annum over a period of years, in the last one year, demand has grown by over 20%. The implication is that demand has outgrown the available network capacity in several locations, and the Electricity Regulatory Authority (ERA) is telling me that power tariffs are likely to rise, contrary to the Government’s objective of supplying power at a low cost,” Okaasai said.
The minister warned that the pressure on the distribution network could undermine efforts to maintain affordable and reliable electricity, particularly as more consumers connect to the grid.
He also blamed ageing equipment and difficulties obtaining spare parts for prolonged outages, saying many components used in the distribution network were sourced from abroad.
“The ageing equipment and shortages of suitable spare parts in the country prolong outages, and it can take longer to diagnose faults, particularly where replacement parts are not readily available. ERA is telling me that we may go back to the days of load-shedding,” Okaasai said.
Load-shedding involves deliberately cutting electricity supply to certain areas to manage a shortage of available power or relieve pressure on the network.
The minister said the Government was also considering prioritising electricity supply to strategic areas, including national parks and parts of Hoima District, where preparations are under way for the 2027 Africa Cup of Nations (AFCON), which Uganda will co-host with Kenya and Tanzania.
However, legislators raised concerns about UEDCL’s decision to award local companies contracts for electricity distribution works without adequately assessing their capacity to deliver.
Orion Transformers was among the companies whose capacity and operations came under scrutiny during the committee proceedings. Lawmakers also raised concerns over allegations involving the company’s representatives, although the specific allegations and their status were not clearly established in the account of the meeting.
The concerns come as UEDCL faces pressure to improve the reliability of electricity distribution following its takeover of the network previously operated by Umeme.
The committee’s scrutiny places renewed attention on the condition of the distribution infrastructure, the availability of replacement equipment and the capacity of contractors to support timely repairs.
Any increase in electricity tariffs would also raise concerns for households and businesses already affected by outages, particularly manufacturers whose operations depend on a reliable power supply.