The government of Uganda has officially taken over the distribution of electricity following the end of Umeme’s 20-year reign.
The transition, which has been in the works for months, will see Uganda Electricity Distribution Company Limited (UEDCL) manage the power distribution network.
A handover ceremony was held on Tuesday December 31st, 2024 at the Ministry of Energy headquarters, attended by key government officials, including the Minister of Energy, Ruth Nankabirwa, and representatives from the Uganda Electricity Distribution Company Limited (UEDCL).
This development comes after years of public outcry over high electricity tariffs and concerns about the efficiency of Umeme’s operations.
President Yoweri Museveni has on several occasions expressed his dissatisfaction with the performance of the power distributor.”Years ago, I made it clear that I was not happy with how Umeme was operating. Ugandans were being overcharged, and this was hindering our industrialization efforts,” President Museveni stated in a past address. “We needed to find a solution that would ensure affordable and reliable electricity for our people.”
Minister Nankabirwa reiterated the government’s commitment to ensuring a smooth transition and improved service delivery.”Today marks a new chapter in Uganda’s energy sector. We are taking full responsibility for the distribution of electricity, and we are committed to ensuring that Ugandans have access to affordable and reliable power,” Ms. Nankabirwa said. “This will certainly propell efforts in achieving our national development goals.”
“We understand the concerns that the public has had regarding electricity tariffs and service delivery. We are determined to address these issues and ensure that the power sector serves the interests of all Ugandans.”She added.
Authorities say, the transition has been carefully planned to minimize disruptions to consumers. UEDCL has been preparing for this takeover, investing in infrastructure and capacity building to ensure a seamless transfer of operations.
With the government now in full control, citizens are certain that UEDCL will ensure efficient management of the network as government fulfills the promise of affordable and reliable electricity for all Ugandans.
On 1st March 2005, goverment awarded Umeme a concession that would run for 20 tears ending on 1st April 2025.
Government notified Umeme in 2022 that it would not renew their concession beyond March 2025, prompting the electricity distributor to initiate an exit plan.
During their tenure, Umeme made notable strides in enhancing the efficiency of power distribution in Uganda by increasing the efficiency rate from 50% in 2005 to 83% in 2022. Umeme also reduced the country’s power loss from a staggering 38% to 18%.
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