KAMPALA, Uganda (UG STANDARD) — Uganda Electricity Distribution Company Limited (UEDCL) is poised to take over power distribution from Umeme, the country’s main power distributor, when its 20-year concession ends in March 2025.
The Electricity Regulatory Authority (ERA) announced Tuesday that UEDCL has applied for licenses to distribute and supply electricity across the country, excluding Kalangala and West Nile.
“We have reviewed and assessed UEDCL’s readiness to take over Umeme’s operations,” ERA CEO Eng. Ziria Tibalwa Waako said during a public hearing in Kampala. “UEDCL has accumulated experience from taking over five private concessions and has expanded its operations to 102 districts.”
UEDCL Managing Director Paul Mwesigwa expressed confidence in the company’s ability to assume Umeme’s operations.
“Over the past 10 years, UEDCL’s business operations have increased from 4 districts in 2014 to 102 districts in 2024. The network operated is now 22,703 km; revenue has grown from sh 36.1 billion in 2014 to sh 100 billion in 2024; while the customer numbers have grown from 5,640 in 2014 to 213,330 as of September 2024,” Mwesigwa said.
Mwesigwa added that UEDCL’s losses have reduced to the ERA target from 28% in 2017 to now 18.1%. “We have 99.9% of our customers connected on prepaid systems. We need to collect 100% of revenue.”
“We have taken over five private concessions, including PACMECS, Kyegegwa Electricity Cooperative Society, and Kilembe Investments Limited,” Mwesigwa said. “With this experience and the new business model, together with the Authority’s support in granting the licenses and an appropriate tariff, Ugandans should be assured of a reliable national distributor that guarantees social economic transformation.”
The Ugandan government has agreed to pay Umeme approximately $225 million to recoup its investments.
The takeover marks a significant shift in Uganda’s energy sector, aimed at reducing electricity tariffs and improving services.
UEDCL has requested ERA to approve an estimated revenue requirement of Uganda sh 4.02 trillion over the next three years to finance operational and capital costs.
Contributing to this report were Manfred Tumusiime and Musa Mbogo.
This story was edited by Javira Ssebwami.
