KAMPALA, UGANDA — Uganda’s electricity distribution network, which has struggled with frequent outages and fluctuations, is expected to stabilize within the next two years, according to the head of the government-owned Uganda Electricity Distribution Company Limited, or UEDCL.
UEDCL Managing Director Paul Mwesigwa told the Nation Media Group that while the transition has presented challenges, the government’s takeover of the network from private operators, including Umeme, will ultimately lead to lower power costs and increased industrial output. UEDCL took over operations from Umeme on April 1, 2025, following the end of the 20-year concession.
“We are chasing our Key Performance Indicators, making sure that power is supplied, and procurements are moving on,” Mwesigwa said, noting the company has also concluded and begun implementing a three-year strategic plan.
Mwesigwa defended the government’s decision to manage the distribution network, arguing it is a fundamental move to ensure electricity is managed within a reasonable cost of capital. He said the government, as the shareholder, is in a better position to attract low-cost capital and secure sovereign guarantees, a benefit unavailable to private operators.
Mwesigwa highlighted the immediate impact of the transition: “On April 1, we started with a raw tariff at a 14 percent reduction; that was a fundamental move.” He noted that this reduction has benefited manufacturers, whose bills have dropped, leading to increased consumption, which suggests increased production capacity and job creation.
The current tariff structure separates manufacturers and services, resulting in a significantly lower cost for manufacturers. For example, the tariff for the manufacturing medium industry is sh355 per unit, while the tariff for the medium industry services is sh412 per unit. Domestic customers pay approximately sh700 per unit.
Mwesigwa acknowledged that industries and households are currently struggling with power issues reminiscent of the pre-Umeme era. He attributed the instability to an overloaded network exacerbated by rapidly increasing demand, which grew from 986 megawatts to 1,115 megawatts, an increase of about 13 percent.
The managing director explained that Umeme halted investments three years ago due to funding issues and government advice, resulting in a lack of substantial network improvements ahead of the handover. This pause, combined with UEDCL’s effort to connect customers who applied long ago to combat electricity theft, has pushed the network to its maximum capacity.
To address the strain, UEDCL has undertaken several improvement projects. The company has already upgraded substations in Kakiri and Mbarara and begun constructing new substations in Kasanga, Majinji, and Kiira to mitigate service fluctuations and enhance the system’s ability to handle growing demand.
