It is a great pleasure and honor for me to preside over the handover of the electricity distribution assets concessioned to Umeme Limited in 2005 back to the Uganda Electricity Distribution Company Limited (UEDCL) today, the 31st of March 2025, here at the National Control Centre in Kampala.
This handover marks the end of Umeme’s 20-year concession, and it is a monumental step forward in attaining Uganda’s second energy sector reforms.
This ceremony is the culmination of hard work by several stakeholders, including the Ministry of Finance, Planning, and Economic Development, my own Ministry of Energy and Mineral Development (MEMD), the Uganda Electricity Regulatory Authority (ERA), UEDCL, and Umeme, Members of Parliament, particularly the Committees of Environment and natural resources, National Economy and Budget, alongside the valuable guidance of Cabinet, the Attorney General and the Auditor General’s office.
In 2005, the Government of Uganda entered into a 20-year concession with Umeme Limited, entrusting the company with the distribution and sale of electricity across the country. As this concession naturally concludes, UEDCL established in 2001 and owned by the Government will assume full responsibility for the sale and distribution of electricity at and below 33 kilovolts as per the licenses issued by the Electricity Regulatory Authority on 31 December 2024.
This transition is a key component of Uganda’s second-generation power sector reforms. It serves as a crucial milestone in our ongoing efforts to:
- Enhance the financial sustainability of the power sector.
- Expand electricity access, especially to underserved communities.
- Attract both domestic and international investments into the sector.
- Improve the quality of supply through deliberate investments in the Generation, Transmission, and Distribution segments.
This handover is not simply a shift in management, but a step towards further strengthening the infrastructure that powers our nation and ensures a sustainable, accessible, and affordable electricity supply for Uganda’s socioeconomic transformation.
As we move forward with this transition, I want to assure all electricity consumers that GoU and Umeme are undertaking all possible measures to avoid disruption in electricity services. The Yaka prepaid system, owned by the Government, will continue to operate without interruption, and customers can continue to purchase electricity units and services of their choice via existing channels such as telecoms (MTN & Airtel) and other collection platforms. On all the telecoms Menus, and to enable a smooth entrance of UEDCL, and continuity of paying for electricity services for all customers formerly under Umeme look out for UEDCL Light, as Yaka has been replaced by “Light”, follow the procedures to get any services of your choice.
Service centers currently operated by Umeme will remain fully operational under UEDCL, ensuring that customers continue to receive support and services as needed. Additionally, electricity tariffs will periodically be determined by the regulator and customers will still be able to make payments through the same methods used today.
To ensure the continued efficiency of the electricity distribution system, the Government, through the Ministry of Finance, Planning and Economic Development has made significant financial commitments. The cabinet approved the borrowing of up to US$190.1 million to finance the buy-out amount for Umeme Limited and an additional US$50 million for UEDCL’s investment requirements. Parliament has approved the borrowing as approved by Cabinet based on the Auditor Generals provision Buy Out amount of USD 190.1 Million. The buyout amount of USD 118,385,306 has been determined by the Auditor General and paid to Umeme under the concession agreement. In addition, the Audit General also noted ongoing works estimated at USD 9,785,298. GoU will pay for the ongoing works once verified.
The government remains committed to improving the infrastructure with initiatives such as grid intensification and densification, preventive maintenance, and the implementation of a hybrid connections program. This will enhance the quality of service, minimize outages, increase access, and demand, and expand the distribution network’.
We acknowledge the current challenges about power supply reliability affecting the country, including capacity constraints, and issues such as vandalism and bushfires that have disrupted electricity supply services. The Ministry of Energy and Mineral Development, together with its partners, is prioritizing urgent upgrades to enhance system capacity and reliability. It is in this vein that GoU has mobilized 50 M USD from ABSA Bank to address the current network deficiencies and improve the reliability and quality of electricity supply. I request Ugandans to be calm and give UEDCL time to make the network robust in tandem with growth in demand.
UEDCL will work tirelessly to address these challenges by undertaking immediate repairs on critical power installations, adding more transformers and substations, and replacing all poles (leaning & rotten), with immediate effect. We have also committed to investing in ICT systems to integrate operations, which will improve service delivery.
The Government is fully committed to a sustainable and reliable energy future for Uganda. The retransfer of assets from Umeme to UEDCL, dubbed as “The Big Switch” is not only a change in management but a reaffirmation of our dedication to the improvement of the well-being of our citzens in line with the NRM Manifesto (2021-2026). We are putting in place mechanisms to ensure that Uganda’s energy needs are met efficiently, sustainably, and equitably for all citizens.
As we move into this new phase, I urge all stakeholders, including UEDCL, UETCL, UEGCL and regulatory bodies, to continue working in collaboration for the betterment of the sector. The continued support of the Government, in the form of financial backing and policy support, will be essential for UEDCL to meet its goals of ensuring equitable electricity access and demand across Uganda.
This handover marks a new beginning in Uganda’s electricity distribution landscape. It is a collective step toward a brighter, electrified future for all Ugandans. With UEDCL now in charge of electricity distribution, we anticipate a more reliable, sustainable, and efficient power sector. Let us embrace this change and continue to work together to power our nation’s development.
