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END OF AN ERA: UEDCL takes over electricity distribution as Umeme era comes to an end

The Minister of Energy and Mineral Development, Ruth Nankabirwa, on 2nd January, 2025 handed over the licenses for the sale and distribution of electricity to the National Main Grid to the Uganda Electricity Distribution Company Limited (UEDCL) from Umeme Ltd

This was able to be achieved after the review of the UEDCL applications by the Electricity Regulatory Authority (ERA), the sector regulator.  The minister said ERA considered, determined and approved the award and issuance of the licenses.

“As you may recall, His Excellency, the President Kaguta Museveni directed that all expiring private distribution concessions should not be renewed upon their natural expiry. Thus far, five concessions have already been returned to the government and are now being managed by UEDCL,” the minister stated.

Government commitments during the transition

Nankabirwa affirmed that the government is fully committed to the continuity of electricity services during this critical period. She revealed that theur top priorities include:

a) Affordability: The existing tariff packagesas approved by ERA —such as the lifeline tariff, declining block tariffs, and time-of-use tariff arrangements will remain operational.

b) Electricity Access: As outlined in Vision 2040 and the National Electrification Strategy, we aim to achieve universal access by 2030 by using both on-grid and off-grid solutions. To achieve this goal, the implementation of the Electricity Access Scale-Up Project (EASP) will be closely monitored.

c) Quality and Reliability: The Regulator will oversee projects that expand or rehabilitate infrastructure, including substations, transformers, lines, and poles, to mitigate service interruptions.

Umeme acknowledged   

The minister said: “I extend my appreciation to Umeme Ltd for its commendable work in loss reduction, improved revenue collection, infrastructure development, system improvement, and advancing electricity access during its tenure.

“I call upon all Ugandans to protect the electricity infrastructure, fulfil their obligations by paying for electricity services, and refrain from power theft and /or vandalizing electricity infrastructure—practices that undermine our efforts to provide reliable power supply.”

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