The Ugandan electricity distribution landscape is poised for significant change as the Uganda Electricity Distribution Company Limited (UEDCL) officially steps in to replace Umeme Ltd in managing the country’s electricity distribution network.
The transition, which will take effect on April 1, 2025, comes after Umeme’s 20-year concession agreement expires in March 2025. This move is in line with the government’s strategy to not renew any expiring private distribution licenses.
Ruth Nankabirwa, Uganda’s Minister for Energy and Mineral Development, made the announcement on Tuesday at Uganda Media Center, emphasizing that the shift in power distribution will be seamless, ensuring that service delivery is not interrupted.
“We remain fully committed to maintaining electricity services without disruption during this critical transition period,” Nankabirwa assured the public. She also highlighted that despite challenges, the government is focused on ensuring continuity, with particular attention to affordability, accessibility, quality, and reliability of electricity supply.
One of the government’s primary commitments during the transition is to uphold affordable electricity tariffs. Nankabirwa confirmed that existing tariffs, which include the lifeline tariff, declining block tariffs, and time-of-use tariffs, will remain unchanged throughout the handover process. This ensures that the cost of electricity will continue to be manageable for consumers, even as UEDCL takes over the distribution mandate.
Accessibility is another cornerstone of the government’s agenda, with a clear goal set for universal access to electricity by 2030. The Ministry aims to achieve 80% coverage by 2028, and 100% by the target year. This ambition aligns with Uganda’s Vision 2040 and the National Electrification Strategy, which outline the roadmap for expanding both on-grid and off-grid solutions. The Electricity Access Scale-Up Project (EASP) will be key to achieving these milestones.
Strengthening Infrastructure and Ensuring Reliability:
UEDCL’s assumption of responsibilities will also see continued improvements in infrastructure. The government has committed to expanding and upgrading key components of the electricity network, such as substations, transformers, and power lines, to enhance system reliability and reduce service interruptions.
Nankabirwa called on Ugandans to play their part in supporting the transition by protecting electricity infrastructure and fulfilling their payment obligations. She specifically warned against power theft and vandalism, which have been persistent challenges undermining the efficiency and reliability of power distribution.
“We urge all Ugandans to help safeguard our electricity infrastructure. It is crucial to ensure the stability of the power supply, and any actions that harm the system will only hinder our progress,” she said.
Employment and Staff Transition
As part of the handover, the employment situation for workers at both UEDCL and Umeme has been carefully managed. According to the Minister, a total of 2,712 employment opportunities will be created under UEDCL, ensuring that employees from both companies are given priority. These positions, set to be advertised shortly, will be open to staff who are currently employed by either UEDCL or Umeme, allowing for a smooth transition without major disruptions in service.
Despite these assurances, Nankabirwa acknowledged that there could be some teething issues during the transition, including possible service interruptions. She likened the situation to the challenges one might face when moving houses, where some tasks are delayed or forgotten. However, she assured the public that UEDCL would work quickly to resolve any glitches that arise during the handover.
A significant aspect of the transition involves the financial arrangements related to Umeme’s outstanding investments. The Office of the Auditor General is currently working to determine the buyout value under the Lease and Assignment Agreement. The Ministry of Finance has promised to ensure that the necessary funds are disbursed in a timely manner to facilitate a smooth transfer of assets.
The Electricity Regulatory Authority (ERA), which oversees the energy sector in Uganda, has also praised Umeme for its contributions during its tenure, particularly in terms of reducing losses, improving revenue collection, and expanding electricity access across the country. However, ERA’s CEO, Ziria Tibalwa Waako, also highlighted persistent challenges that remain, including power theft and equipment vandalism, which continue to hinder the growth of the electricity sector.
“We must remain vigilant in protecting our infrastructure,” Tibalwa Waako stated, calling on the public to report any suspicious activities related to power theft or vandalism. She emphasized that despite the increased efforts to curb these issues, there has been a worrying rise in such incidents.
As UEDCL takes over the distribution mandate, many have expressed confidence in its ability to manage the electricity distribution network. With over 20 years of experience in the sector, UEDCL is seen as well-equipped to continue the work begun by Umeme.
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