When did UEDCL take over power distribution in Uganda?

Today, 1st April 2025, Uganda Electricity Distribution Company Limited (UEDCL) has officially taken over electricity distribution operations nationwide. This transition marks the conclusion of Umeme Limited’s 20-year concession, ushering in a new era of state-controlled electricity distribution. With this shift, consumers are keenly observing how UEDCL will handle electricity distribution, tariffs, and service efficiency.

What is UEDCL?

UEDCL is a government-owned enterprise responsible for distributing electricity to domestic and commercial users at voltages of 33 kilovolts and below. The company was established in 2001 following the unbundling of the Uganda Electricity Board into separate entities handling generation, transmission, and distribution. UEDCL initially managed power distribution before leasing its assets and operations to Umeme Limited under a 20-year concession agreement in 2005.

Despite Umeme’s control over distribution, UEDCL retained an oversight role, monitoring compliance, infrastructure maintenance, and service delivery. Now, with the expiration of the concession, UEDCL has fully resumed operational control, with its headquarters based in Kampala, overseeing electricity distribution across the country.

Also, read more about the transition

The Transition from Umeme to UEDCL

The Ugandan government prepared extensively for this transition to ensure a smooth handover. In March 2025, the Parliament approved a government request to borrow $190 million from Stanbic Bank to compensate Umeme for its unrecovered investments, as stipulated in the concession agreement. However, discrepancies in the buyout figures emerged, with Umeme initially estimating its entitlements at approximately $234 million. Despite these financial negotiations, the transition proceeded as scheduled, with UEDCL assuming full control on April 1, 2025.

Umeme had been gradually scaling down its operations to facilitate a seamless handover. Many of its employees have been absorbed into UEDCL to retain institutional knowledge and maintain operational continuity. UEDCL has assured the public that its primary focus will be on enhancing service delivery, upgrading infrastructure, and reducing power losses.

Rebranding of Yaka to UEDCL LIGHT

One of the most noticeable changes accompanying the transition is the rebranding of Uganda’s prepaid electricity system. Previously known as Yaka, the metering system has now been renamed UEDCL LIGHT. The rebranding was announced by Energy Minister Ruth Nankabirwa, who emphasized that while the name has changed, the system’s functionality remains the same.

“The only difference is that Yaka will now be known as UEDCL LIGHT to unify customers across all service territories. Consumers will continue to purchase electricity as before using mobile money services, banks, and authorized vendors,” Minister Nankabirwa stated.

This announcement was met with mixed reactions. While some Ugandans welcome the name change as a symbol of a new era, others question whether UEDCL can match or surpass the efficiency of Umeme in service delivery.

Lowered Electricity Tariffs

In a move aimed at enhancing affordability and stimulating industrial growth, electricity tariffs have been adjusted downwards to ease the burden on consumers and businesses. The revised rates reflect the government’s commitment to making electricity more accessible while supporting economic development. Lower tariffs are expected to boost productivity, encourage investment, and improve the standard of living for many Ugandans.

What This Means for Ugandan Consumers

UEDCL has reassured the public that the transition will not disrupt electricity supply. Prepaid electricity units purchased before the takeover remain valid, and vending services through banks, telecoms, and other vendors will continue to operate seamlessly.

However, concerns linger about potential tariff adjustments and service efficiency under state management. Some consumers remain hopeful that electricity costs might reduce, while others fear possible bureaucratic inefficiencies and delayed response times for technical issues.

“We have been struggling with high electricity costs and power outages. If UEDCL can improve reliability and affordability, then this is a positive change. But we are also cautious about state-run inefficiencies,” said John Kamya, a resident of Kampala.

Industry experts highlight both opportunities and challenges ahead for UEDCL. The company must prove its capability in managing distribution efficiently, addressing power theft, upgrading old infrastructure, and expanding electricity access to rural areas.

Public Reactions and Future Expectations

The transition has generated mixed reactions across various sectors. Some stakeholders view UEDCL’s takeover as a step towards energy sovereignty, while others worry about potential inefficiencies that have characterized other state-run enterprises in the past.

“It is a welcome move that electricity is now under a Ugandan entity. We hope that UEDCL will focus on rural electrification and address challenges like load shedding and fluctuating tariffs,” said energy analyst Dr. Isaac Mwesigwa.

Conversely, some business owners express concerns over potential disruptions in service, given UEDCL’s lack of experience in direct electricity distribution over the past two decades. “Umeme had streamlined certain aspects of distribution. If UEDCL does not maintain the same efficiency, businesses will suffer,” said Patricia Nakato, a shop owner in Kampala.

UEDCL’s Vision Moving Forward

UEDCL has outlined ambitious plans to modernize electricity distribution in Uganda. Key focus areas include:

• Infrastructure Upgrades: Investing in grid modernization to reduce power outages and technical losses.
• Customer Service Improvements: Streamlining response times for complaints and service requests.
• Tariff Stabilization: Ensuring fair electricity pricing while maintaining operational sustainability.
• Rural Electrification Expansion: Extending the grid to underserved regions to enhance economic development.

“Our commitment is to ensure affordable, reliable, and accessible electricity for all Ugandans. We urge the public to support this transition and work with us in building a better energy sector,” said Eng. Joseph Mukasa, Managing Director of UEDCL.

A New Era for Uganda’s Power Sector

With UEDCL now in charge, Uganda’s power sector enters a new phase of state-led distribution. Whether this transition will bring about efficiency, reduced power costs, and better service delivery remains to be seen. As the country adjusts to the change, all eyes are on UEDCL to fulfill its promises and establish itself as a reliable and customer-centric power distributor.

For now, Ugandans wait with cautious optimism, hopeful that this shift will bring the much-needed improvements in electricity access and service delivery.