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UEDCL gets license to replace Umeme

The handover comes months to the impending transfer of the distribution network from Umeme Limited, whose concession will naturally expire on 31 March 2025.
Minister Ruth Nankabirwa and Eng. Pauline Irene Batebe the Energy Ministry PS at the license handover
Minister Ruth Nankabirwa and Eng. Pauline Irene Batebe the Energy Ministry PS at the license handover

The Minister of Energy and Mineral Development, Hon. Dr. Ruth Nankabirwa Ssentamu, officially handed over the license for electricity distribution to the Uganda Electricity Distribution Company Limited (UEDCL) on Tuesday. 

The handover comes months to the impending transfer of the distribution network from Umeme Limited, whose concession will naturally expire on 31 March 2025.

During a press briefing, Dr. Nankabirwa assured Ugandans of a seamless transition in the electricity sub-sector. 

She reiterated the government’s commitment to ensuring continuity in electricity services while prioritising affordability, access, and quality. 

"The government remains fully committed to the continuity of electricity services. Existing tariff packages, as approved by the Electricity Regulatory Authority (ERA), will remain operational," she stated.

The license handover follows the ERA’s approval of UEDCL’s applications, and government’s decision not to renew expiring private distribution concessions.

Seamless Transition and Employment Guarantees

Dr. Nankabirwa mentioned the measures in place to ensure a smooth transition, including retaining staff from Umeme Limited and UEDCL. 

Over 2,700 employment opportunities have been secured under a framework designed to protect the workforce while maintaining high standards of service delivery.

Over 98% of staff were retained in previous transitions, and this underscores our commitment to protecting the workforce and ensuring uninterrupted electricity supply,” she noted.

The ERA and the Ministry of Energy, in collaboration with UEDCL, have promised a transparent process to safeguard staff interests. Both agencies aim to integrate skilled personnel from Umeme and UEDCL to form a cohesive team capable of achieving the country’s energy goals.

Acknowledging Umeme's Contribution

The Minister commended Umeme Limited for its achievements during its 20-year concession, including advancements in revenue collection, loss reduction, and infrastructure development. 

"I thank the Board, Management, and Staff of Umeme for their dedicated service to the people of Uganda,” she said.

ERA CEO Eng. Ziria Tibalwa Waako echoed similar sentiments, noting that Umeme’s expertise has positioned Uganda as a leading electricity supply industry on the continent.

Commitment to Uganda’s Energy Vision

The handover aligns with Uganda’s Vision 2040 and the National Electrification Strategy, which aim for universal electricity access by 2030 through on-grid and off-grid solutions. Projects such as the Electricity Access Scale-Up Project (EASP) are set to play a critical role in achieving these targets.

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