In a historic transition, the Uganda Electricity Distribution Company Limited (UEDCL) has officially taken over power distribution from UMEME Limited, marking the end of a 20-year concession. This move, driven by the government’s decision to reclaim control, aims to enhance efficiency, affordability, and service reliability in the power sector. The handover ceremony, officiated by Energy Minister Ruth Nankabirwa, signified a pivotal shift in Uganda’s electricity management strategy.
UEDCL Managing Director Paul Mwesigwa expressed confidence in the transition, highlighting the company’s readiness. “We have already commenced procurement, and our stores are fully stocked. Within ten working days, all connections should be operational. Our target is to clear all pending applications within three months and connect up to 300,000 new customers this year,” he stated. He further reassured the public that a fair recruitment process had been undertaken, absorbing a significant portion of UMEME’s workforce.
Despite UMEME’s departure, its leadership reflected on its achievements over the past two decades. Selestino Babungi, UMEME’s Managing Director, acknowledged the company’s efforts in transforming Uganda’s electricity distribution. “In 2005, we were only converting 50% of the power from UETCL into cash. Today, that figure stands at 84%. We leave with pride, knowing that we played a significant role in improving power supply,” he said. However, he cautioned about the rising demand for electricity, warning that without strategic investments, the country could face shortages within three years.
Regulators have pledged to maintain oversight and ensure service quality does not decline under UEDCL’s management. “ERA remains committed to enforcing efficiency, reliability, and affordability in electricity distribution. UEDCL has clear performance targets, and failure to meet them will result in penalties,” stated Eng. Ziria Tibalwa Waako, CEO of the Electricity Regulatory Authority (ERA). She emphasized that the transition is not just about asset transfer but also about upholding the responsibility to serve all Ugandans effectively.
However, as UEDCL embarks on this new journey, concerns remain about its capacity to manage power supply without exacerbating blackouts. Many Ugandans have long complained about frequent electricity outages under UMEME, which have led to significant business losses. The pressing question now is whether the government, through UEDCL, can efficiently and effectively deliver reliable electricity without worsening the situation.
The government has assured the public that robust measures are in place to avoid disruptions. UEDCL has secured $74 million for its first year of operations, with plans to invest in network upgrades and digitalization. As the country watches closely, the success or failure of this transition will have far-reaching implications for Uganda’s economic growth and energy future.
