UEDCL Receives Power Distribution Licenses

Uganda Electricity Distribution Company Ltd (UEDCL) has officially been handed the electricity distribution license ready to replace Umeme Ltd, effective April 1, 2025.

Umeme’s 20-year concession ends in March 2025, and UEDCL’s takeover of the distribution mandate is in line with the government’s decision not to renew any expiring distribution license held by a private company.
Announcing the handover on Tuesday, Ruth Nankabirwa, the Minister for Energy and Mineral Development says so far, four licenses have been repossessed by the government, promising that the transition will not disrupt the service delivery.
“I wish to assure all Ugandans that we remain fully committed to the continuity of electricity services during this critical period,” she said, adding that top priorities include affordability, access quality and reliability.

During UEDCL’s operations, Umeme’s existing tariff packages such as the lifeline tariff, declining block tariffs, and time-of-use arrangements, will remain operational.
On accessibility, the ministry targets 80 percent access within three years and 100 percent by 2030, which is in line with Vision 2040 and the National Development Plan III Electrification Strategy.
These targets will be achieved by using both on-grid and off-grid solutions through the implementation of the Electricity Access Scale-Up Project (EASP).

As the government pledges to expand and rehabilitate the infrastructure, including substations, transformers, lines, and poles, to mitigate service interruptions, the minister appealed to Uganda to protect the facilities.
“I call upon all Ugandans to protect the electricity infrastructure, fulfil their obligations by paying for electricity services, and refrain from power theft or vandalizing electricity infrastructure—practices that undermine our efforts to provide reliable power.”
She also reiterated that both UEDCL and Umeme Ltd existing employees, have been included in the transition though they may have to apply for the available positions.
“The Government has set the post-Umeme Limited structure with a total of 2712 employment openings exclusively for UEDCL and Umeme employees, in line with the Lease and Assignment Agreement for a seamless asset retransfer. These jobs have been availed for you who are already working at UEDCL and Umeme Limited to ensure the continuity of the electricity service without distortions.”
The UEDCL Board will be responsible for the recruitment of staff. She encouraged “all eligible employees of the two companies” to express interest and/or apply for the positions matching their qualifications and experience once advertised shortly.
Nankabirwa also noted that there are of late challenges of increased power cuts, which she said could be related to the transition period.
“Challenges are inevitable. They are consequential to the transition. You know like when you are to move, you might forget some things and focus on others,” she said but added that these are some issues UEDCL will begin with.
On the payment of Umeme’s outstanding investment, the Office of the Auditor General is currently working to determine the buyout by the Lease and Assignment Agreement.
Ministry of Finance, Planning and Economic Development has committed to providing the buyout amount on time for a seamless transition, and also to facilitate UEDCL operations.
The Electricity Regulatory Authority (ERA) commended Umeme especially in the collaboration with the regulator and the ministry to ensure declining tariffs and paying on time, which has ensured more government investment in the sector.
UEDCL takes over when the country has a generation capacity of 2,052.6 megawatts, up from about 300 when Umeme got the concession.
ERA Chief Executive Officer, Ziria Tibalwa Waako however, said the main challenges to the growth and improvement in electricity distribution remain power theft and equipment vandalism.
She said that despite increased efforts against them there is an increase, urging the public to be vigilant and report any suspicious activities.
Tibalwa also reiterated the commitment to retain the Umeme employees, adding that for the concessions that have already been repossessed, 98 percent of the staff have retained their jobs.
UEDCL Board Chairman Francis Tumuhairwe also repeated this.  “Umeme staff are going to be part of us. No one should be worried.”
On their capacity to run the industry, Tumuhairwe said they have been in the business for 20 years and will use that experience to manage the operations.