The Natural Resources Committee of Parliament is currently engaging officials from the Ministry of Energy and Mineral Resources to establish the status of the Uganda Electricity Distribution Company Limited’s (UEDCL) takeover of electricity distribution from UMEME, ahead of the March 31, 2025, deadline.
This follows the government’s decision to terminate UMEME’s 20-year concession, a move that comes with a hefty financial implication, reportedly amounting to approximately USD 200 million in compensation to the private electricity distributor. The termination marks a significant shift in Uganda’s energy sector, with the government seeking to reclaim full control of electricity distribution.
UMEME, a private electricity distribution company, has been in charge of power distribution in Uganda since 2005, following its concession agreement with the government. The agreement was aimed at improving power supply efficiency, reducing energy losses, and increasing electricity access. However, over the years, UMEME has faced public and political criticism over **high electricity tariffs, billing inconsistencies, and poor service delivery.
The government, through UEDCL, has been preparing for the transition by assessing the infrastructure, financial requirements, and human resource needs to take over electricity distribution without disruptions. The Ministry of Energy and Mineral Resources has assured the public that the transition will be smooth and that measures are in place to ensure stability in power supply.
The Parliamentary Natural Resources Committee’s current engagement with the Energy Ministry officials is crucial in evaluating the readiness of UEDCL to manage the national power distribution network effectively. Questions remain over whether UEDCL has the technical and financial capacity to efficiently run the distribution network previously handled by UMEME.
With just a few months left before the March 2025 deadline, Parliament is keen on ensuring that UEDCL is well-prepared to avoid any disruptions in power supply. Key issues under scrutiny include the financial readiness of UEDCL, infrastructural upgrades, human resource capacity, and a seamless transition plan that will not affect consumers negatively.
The committee’s findings and recommendations will be crucial in shaping the next steps of the transition process. More updates will follow as the parliamentary session continues.
