By Andrew Irumba
After 20 years of managing Uganda’s electricity distribution, Umeme Limited will officially hand over its operations to the Uganda Electricity Distribution Company Limited (UEDCL) on April 1, 2025. This marks the end of Umeme’s concession agreement with the government and the beginning of a new chapter in Uganda’s electricity distribution.
Umeme’s Legacy
Since its inception in 2005, Umeme has been at the forefront of Uganda’s electricity sector, spearheading modernization and expansion of the grid. Over the years, the company invested heavily in infrastructure, reducing power losses from over 38% to below 20% and connecting millions of Ugandans to the grid. However, the transition comes amid growing calls for more affordable electricity and greater government involvement in distribution.
“Umeme has played a pivotal role in transforming Uganda’s energy landscape. We are proud of the milestones achieved in reliability, coverage, and customer service,” said Umeme’s outgoing Managing Director.
The Transition to UEDCL
UEDCL, a government-owned entity, will take over electricity distribution responsibilities. The company has promised to build on Umeme’s achievements and ensure a seamless transition. With UEDCL at the helm, the government aims to lower electricity tariffs, expand rural electrification, and improve service delivery.
The transition plan, according to UEDCL, includes:
Customer Management: Existing customers will retain their accounts, and UEDCL has assured that disruptions during the transition will be minimal.
Workforce Integration: Umeme employees will be absorbed into UEDCL to preserve institutional knowledge and ensure continuity.
Infrastructure Continuity: All assets, including transformers, substations, and distribution lines, will be transferred to UEDCL.
Government’s Vision
The government sees UEDCL’s takeover as part of a broader strategy to streamline the energy sector and achieve universal electricity access by 2030. “This is not just a transition but a step towards ensuring affordable and reliable electricity for all Ugandans,” said the Minister of Energy and Mineral Development Ruth Nankabirwa on Tuesday while handing over contract to UEDCL.
However, challenges remain, including high operational costs, aging infrastructure, and the need for further investment in renewable energy.
Public Reactions
The transition has sparked mixed reactions. Some Ugandans welcome the move, hoping it will lead to lower electricity tariffs. Others are concerned about whether UEDCL, which had a checkered history before Umeme’s concession, can sustain the sector’s progress.
What’s Next?
As the April 1, 2025, transition date approaches, the government and UEDCL are working around the clock to ensure the shift is smooth. Stakeholders, including development partners and energy sector experts, will be closely watching to see if this decision delivers on its promise of more efficient, affordable, and inclusive electricity distribution.
For many Ugandans, the future of their power supply now rests in the hands of UEDCL, a company determined to prove that it can rise to the challenge and light the way forward.
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