It is my privilege to welcome you to this historic event, marking the handover of the electricity distribution concession from Umeme Limited to the Uganda Electricity Distribution Company Limited (UEDCL). Today, we stand at a crossroads in Uganda’s energy sector, one that paves the way for a more sustainable, reliable, and efficient distribution of electricity across the country.
As we transition from Umeme’s 20-year concession to the government-owned UEDCL, I would like to acknowledge the efforts of all stakeholders involved in this significant process. We appreciate the cooperation of Umeme Limited, the Electricity Regulatory Authority (ERA), the Ministry of Energy and Mineral Development (MEMD), and all other entities that have contributed to this seamless transition.
Today’s handover is not just a change in management; it is a crucial step in advancing Uganda’s second-generation power sector reforms. By returning control of the electricity distribution network to UEDCL, we are addressing key priorities:
- Ensuring the sustainability and financial stability of the power sector.
- Expanding electricity access to rural and underserved areas.
- Consolidating the distribution system in line with the energy policy 2023.
- Reducing the cost of operation in the ESI thus contributing to end-user tariff reduction as guided by H.E. Y.K Museveni
- Strengthening operational efficiency through a government-owned and operated entity.
These reforms are essential for achieving Uganda’s vision of a fully electrified nation, where every citizen has access to reliable, affordable, and sustainable electricity.
I would like to recognize the tireless efforts of all our stakeholders, Cabinet, the Parliament of Uganda, the Natural Resources Committee, the Committee on National Economy, the Ministry of Energy and Mineral Development team, Umeme, UEDCL, ERA, and the Auditor General’s office. We recognize your varied contributions cooperative spirit and the hard work that has gone into making this transition possible.
The government has ensured a smooth handover, transition, and supply continuity. We would like to reassure the public that UEDCL will carry forward the responsibilities effectively, leveraging existing systems and infrastructure attained through the tariff/taxpayers’ money.
Additionally, let me reassure Ugandan electricity consumers that there will be no interruptions in service delivery. The Yaka prepaid system, which is owned by the Government, will remain operational with no changes in how consumers purchase units. Only difference is that, YAKA will be replaced by UEDCL Light to enable all customers formerly under Umeme and customers under UEDCL service territories will continue accessing services normally.
The service centers previously operated by Umeme will continue under UEDCL, ensuring that customer support remains uninterrupted.
It is important for us to appreciate that UEDCL has the mandate to operate and maintain the electricity distribution system at and below 33 kilovolts, and they have been operating other concessions outside the UMEME and from due diligence undertaken before license issuance UEDCL has performed well turning around rural areas into commercially viable territories. So their efficiency level has already been tasted by Ugandans.
We shall ensure that UEDCL works to expand coverage to underserved regions and improve service reliability. A service they have already been undertaking in some areas of the country.
The Ministry’s strategic priorities for UEDCL are to ensure that the upgrading of the grid is undertaken, reducing of energy losses is prioritized, and enhancing customer service.
The GoU through the Ministry of Finance, Planning, and Economic Development has already paid Umeme buy-out US$118 and committed 9 million (projects under progress); and US$50 million for UEDCL’s capital investments. This follows the decision by cabinet and parliament hence demonstrating the government’s financial and operational support towards the electricity distribution segment. This funding will allow UEDCL to address infrastructure gaps, enhance the network, and ensure continued investment in operational efficiency.
Looking ahead, our future investments in the energy infrastructure will include ongoing plans to invest in grid intensification and densification to improve network coverage. The MEMD will continue with its efforts to implement the EASP that will see 1.2 M customers added to the distribution grid.
I want to congratulate UEDCL upon attaining this mandate which comes at a time when the MEMD is implementing transformational national strategies aimed at the socio-economic transformation of Uganda.
I now take the honor to invite our Chief guest, the Minister of State of Energy and Mineral Development, Hon. Dr. Canon Ruth Nankabirwa Sentamu to come and address the audience. Thank you