UEDCL Take over UMEME in March 2025

It has been already officially announced that UEDCL will take over from UMEME in March 2025; however people are raising worries. The Government of Uganda has moved to dispel public concerns regarding the transfer of electricity distribution from Umeme Limited to the state-run Uganda Electricity Distribution Company Limited (UEDCL). The change follows the impending expiration of Umeme’s 20-year concession in March 2025, with the government opting not to renew distribution licenses held by private entities.

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The Ministry of Energy, in a key development, handed over two licenses to UEDCL for the sale and distribution of electricity on the main grid. This marks the beginning of a significant transition in Uganda’s energy sector, one aimed at consolidating distribution under public management.

Speaking during the handover ceremony, UEDCL board chairperson Francis Tumuheirwe reassured Ugandans of a smooth transition. “We shall see a seamless transfer from Umeme to UEDCL. All necessary conditions are in place to ensure we do a good job. Ugandans need to be rest assured that we shall do a good job,” Tumuheirwe emphasized.

Addressing Concerns

Concerns have emerged among the public regarding the capacity of a government-owned entity to efficiently manage power distribution, especially considering the high standards and broad coverage previously maintained by Umeme. However, Tumuheirwe sought to allay these fears by highlighting company’s extensive experience.

“For over 20 years, we have successfully managed concessions in various parts of the country outside the major cities. We have demonstrated that we can reasonably handle such responsibilities. I want to promise Ugandans that their homes will remain lit, and manufacturers and businesses will continue to receive a steady supply of power,” he assured.

Government Confidence

Energy Minister Ruth Nankabirwa reiterated the government’s confidence in UEDCL’s capabilities. She cited the company’s current management of major hydroelectric power plants, including Nalubaale, Kiira, Isimba, and Karuma dams, as evidence of its technical and operational proficiency.

“UEDCL has assured me they are ready for the job. As a government, we are not worried,” Nankabirwa stated. She emphasized that UEDCL’s proven track record positions it well to handle the challenges of nationwide electricity distribution.

Seamless Transition

A key aspect of the transition will involve the integration of personnel from Umeme into UEDCL’s operations to ensure continuity. Nankabirwa revealed that plans are in advanced stages to retain staff from Umeme, adding that this will be critical to achieving a seamless transfer of operations.

The minister also issued a directive to UEDCL to prioritize affordability, accessibility, quality, and reliability of electricity for all Ugandans. She outlined ambitious targets for the company, which include achieving 400,000 new connections annually—equivalent to approximately 30,000 new connections per month.

The Path Ahead

The government’s decision not to renew private concessions marks a strategic shift aimed at enhancing national control over electricity distribution. As UEDCL takes over, its performance will be closely watched to assess whether public management can deliver on promises of reliability and affordability.

For Ugandans, the assurance of uninterrupted power supply and the potential for expanded access to electricity will be key indicators of the success of this transition.

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