After 20 years of service, Umeme Limited, which has been distributing electricity across the country, has officially handed over power distribution to Uganda Electricity Distribution Company Limited (UEDCL), which will take over electricity distribution effective 01/04/2025.
This handover marks a strategic shift aimed at improving financial sustainability, expanding electricity access, and enhancing service reliability across the country.
During the asset handover that took place at Lugogo, Minister of Energy Ruth Nankabirwa, who presided over the event, noted that UEDCL now assumes full responsibility for electricity distribution and improvements to the network. She added that this marks a significant step in Uganda’s second-generation energy reforms.
The Minister revealed that a period of harmonization will begin on April 1 to determine the final buyout amount, which will include investments made by Umeme that were not accounted for by the Auditor General. She assured the Umeme board that the process will be concluded smoothly, as this is a natural conclusion.
However, she cautioned the new board of UEDCL about the political pressures they may face as the country approaches the political campaign period.
The CEO of the Electricity Regulatory Authority, Eng. Ziria Tibalwa Waako, expressed that this transition has been planned for the past five years, and she is hopeful for the UEDCL board as it marks the realization of this long-awaited process.
The outgoing Umeme Managing Director, Selestino Babungi, expressed concern about Uganda’s rising electricity demand, noting the need for investment in additional power generation, such as building our own power plants. He added that if nothing is done, the country may face a power shortage in the next three years.
It should be noted that Umeme began distributing power across the country in 2005 and has served for a period of 20 years, initially catering to 250,000 customers. However, the demand for electricity distribution has risen significantly, as the number of customers has increased from 250,000 to over 2 million.
