UMEME Hands Over Electricity Distribution to UEDCL in Landmark Transition

Uganda Today Edition: UMEME Hands Over Electricity Distribution to UEDCL in Landmark Transition

Kampala, Uganda – The curtains have today March 31st 2025, officially fallen on UMEME Ltd’s 20-year electricity distribution tenure, paving the way for Uganda Electricity Distribution Company Ltd (UEDCL) to take charge. The highly anticipated transition, which culminated in a formal handover ceremony, marks a new chapter in Uganda’s energy sector.

The event, held at the UEDCL offices at Lugogo in Kampala, was presided over by the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa. UMEME’s Board Chairman, Mr. Patrick Bitature, officially transferred the responsibilities to UEDCL, urging the incoming management to uphold the operational excellence that UMEME had strived to achieve.

Why UMEME’s Concession Was Not Renewed

UMEME’s departure was influenced by a combination of factors. The government, citing the need for better control over power distribution, opted not to renew the company’s concession, which expired in 2025. Among the major concerns were:

• High electricity tariffs – Consumers had long voiced concerns about the high cost of electricity, which hindered industrial growth and domestic affordability.

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• Government’s push for local management – By returning the distribution function to UEDCL, the government aims to enhance efficiency and accountability.

• Financial considerations – UMEME’s operational costs, including profit margins, were seen as an added financial burden on end-users.

• Corruption allegations – While UMEME had recently made strides in stamping out corruption, past concerns about inefficiencies and billing irregularities played a role in the decision not to renew its concession.

A Smooth Transition with 80% UMEME Staff Retained

In his speech, Mr. Bitature reassured stakeholders that UEDCL would not be starting from scratch, as 80% of UMEME’s workforce has been integrated into the new management structure. He advised the new leadership to build on UMEME’s reforms, particularly in fighting corruption, and to focus on ensuring reliable and affordable electricity for Ugandans.

New Branding: Yaka Becomes “Light”

One of the most noticeable changes for consumers is the renaming of the prepaid electricity product “Yaka” to “Light”. This rebranding is aimed at giving Ugandans a fresh perspective on power distribution under UEDCL’s stewardship.

Minister Nankabirwa’s Call for Accountability

Hon. Ruth Nankabirwa, while officiating the handover, directed the incoming Executive Director of UEDCL, Mr. Paul Mwesigwa, to brace for intense scrutiny.

“Power distribution is not just a technical job. It is a responsibility that carries the expectations of millions of Ugandans, from the highest office in the land to the most remote village,” she said.

She emphasized that the government will closely monitor the performance of UEDCL, ensuring that the transition does not result in service disruptions or inefficiencies.

Electricity Tariffs Slashed by 14%

In a significant relief for Ugandans, the government has announced a 14% reduction in electricity tariffs following the transition. This move is expected to ease the cost of doing business and encourage more households to connect to the grid.

$118 Million Buyout Settlement

To facilitate a smooth takeover, the government paid $118 million to UMEME as a buyout package, settling outstanding financial obligations. This payment ensures that UMEME exits without legal disputes and allows UEDCL to start afresh.

UETCL Urges Ugandans to Support UEDCL

When contacted for comment, Uganda Electricity Transmission Company Ltd (UETCL) Head of Administration, Pamela Nalwanga, urged Ugandans to rally behind UEDCL.

“This is a national milestone. Ugandans must now focus on supporting UEDCL to execute its mandate beyond the call of duty. Reliable power supply is a shared responsibility,” she stated.

With the handover complete, the spotlight now shifts to UEDCL. Will it meet the high expectations of Ugandans? Only time will tell.

Published by www.ugandatoday.co.ug, your trusted source for news and analysis

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