UEDCL takes over electricity distribution as Umeme’s concession ends

The Ministry of Energy has granted two licenses to Uganda Electricity Distribution Company Limited (UEDCL) to manage the sale and distribution of electricity on Uganda’s main grid.

This marks a significant transition as UEDCL prepares to take over from Umeme when its 20-year concession expires in March 2025.

Speaking at the handover, UEDCL board chairperson Charles Tumuheirwe assured Ugandans of a smooth transition.

“We shall ensure a seamless transfer from Umeme to UEDCL. All necessary conditions are in place to ensure we do a good job. Ugandans can rest assured their power supply will remain steady,” he said.

Tumuheirwe emphasized UEDCL’s experience in managing power distribution for over two decades and its successful takeover of other concessions in the past.

“We have been doing this for 20 years, mainly outside big cities. I promise Ugandans their homes will remain lit, and businesses will continue to have reliable power,” he noted.

Despite public concerns about UEDCL’s capacity as a government-owned entity to manage power distribution, Energy Minister Ruth Nankabirwa expressed confidence in their ability. She highlighted UEDCL’s management of major hydropower dams, including Nalubaale, Kiira, Isimba, and Karuma, as evidence of their capability.

“They have assured me they are ready for the job. As government, we are not worried,” Nankabirwa stated.

The Energy Minister tasked UEDCL with ensuring affordable, reliable, and quality electricity. She outlined an ambitious target of 400,000 new connections per year, translating to 30,000 per month, to expand access across the country.

“Power is critical for improving lives and driving economic growth. We don’t want darkness at noon. People want electricity to watch football, run businesses, and enjoy life. UEDCL must deliver,” Nankabirwa said.

To ensure continuity, the minister revealed plans to retain Umeme and UEDCL staff as part of the transition process. She reassured the public that the government is finalizing arrangements to make the takeover smooth.

The government’s decision not to renew private distribution licenses marks a shift in Uganda’s energy sector, aiming to centralize power distribution under UEDCL.

With the handover complete, UEDCL is set to build on its experience, focusing on infrastructure upgrades, reducing outages, and expanding electricity access to more households and businesses.