The Ministry of Energy has handed two key licenses to Uganda Electricity Distribution Company Limited (UEDCL), enabling the state-owned entity to take over the sale and distribution of electricity from Umeme when its 20-year concession expires in March 2025.
During the handover ceremony, UEDCL Board Chairperson Francis Tumuheirwe assured Ugandans of a smooth transition. “We shall see a seamless transfer from Umeme to UEDCL. All necessary conditions are in place to ensure we do a good job,” Tumuheirwe said.
The government’s decision not to renew private distribution licenses has raised concerns among the public regarding UEDCL’s capacity to manage power distribution effectively. However, Tumuheirwe highlighted the company’s track record, having successfully managed other concessions for over two decades.
“We have been distributing power outside major cities and maintaining steady supply. Ugandans can be assured of reliable electricity for their homes, businesses, and industries,” Tumuheirwe added.
Energy Minister Ruth Nankabirwa echoed these sentiments, noting that UEDCL’s management of key hydroelectric dams like Nalubaale, Kiira, Isimba, and Karuma demonstrates their capability.
“UEDCL has assured me they are ready for the job. As government, we are confident in their ability to deliver,” Nankabirwa stated.
To ensure a smooth transition, plans are underway to retain staff from both Umeme and UEDCL, preserving institutional knowledge and expertise. The Minister also emphasized the need for UEDCL to prioritize affordability, access, quality, and reliability in power distribution to benefit all Ugandans.
This marks a significant shift in Uganda’s power distribution landscape as the government moves toward increased control of the energy sector.
