In 1898, the British Electric Traction Company acquired a controlling interest in the Horse-Tramway Service, Service, which became 'The Worcester Electric Traction Co. Ltd, and sought powers to electrify the tramways. For three or four years the matter was discussed at stormy meetings, for not everyone wanted these noisy vehicles. Eventually in 1902, the Company having been granted a lease of 21 years, started running cars in February of that year, using current generated by the City Electricity Works at Hylton Road. Also in 1902, horse omnibus routes were extended to Hallow Road and to Powick.
Horse trams ceased running in 1903.
The official opening of the electric system took place on February 6, 1904, with services to Barbourne, Shrub Hill and St. John's.. Members of the City Council took a ride from the Severn Bridge to Barbourne on the first available car; the Mayor, Mr. J. S. Cook, taking the first ticket. So great was the novelty of the occasion that crowds lined up in queues for the ride. The trams ran in each direction at ten minute intervals. The termini were besiged, and cars were crowded even when running at five minute intervals. Three additional routes were constructed: to the Cemetary via Rainbow Hill; from the Cross to London Road and the Bath Road, and an extension of the St. John's route along Malvern Road, beyond the Brunswick Arms; this latter extension coming in 1906. This completed the system. The total route and track mileages were then 5.86 miles and 5.58 miles respectively.