Uganda: Umeme Employees Face Job Losses As UEDCL Takes Over End Of March 2025

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Employees of Umeme, the main electricity distribution company in Uganda, are likely to lose their jobs as Uganda Electricity Distribution Company Limited (UEDCL) is set to take over the electricity distribution role in April 2025.

UMEME Limited was formed in 2004 by a consortium of Globeleq, a subsidiary of the Commonwealth Development Corporation of the United Kingdom, and Eskom of South Africa to take over electricity distribution in Uganda.

The company has operated for the past 20 years under concession and it expires next month.

Speaking on the transition recently during the orientation retreat for new members of the Parliamentary Committee on Environment and Natural Resources at Speke Resort Munyonyo, Minister for Energy and Mineral Development, Ruth Nankabirwa, said government could not absorb all Umeme staff due to concerns over redundancy.

“Unfortunately, we cannot simply absorb all the staff, especially since UEDCL already has personnel from the successor company,” the minister said.

“Doing so would result in redundancy in some offices, leaving employees without work while increasing operational costs, which would ultimately impact electricity supply,” she added.

The Minister reassured affected employees that they would be prioritised for re-employment in other roles within the electricity sector.

“There are 191 of them, and we will retain them as specialists so that when the need arises, we can call on them. We can also recommend them to contractors working within the network to give them first priority,” she added.

The transition comes after the government announced three years ago that UMEME’s 20-year concession would not be renewed.

“Those who have been working with Umeme should not be surprised. The roadmap was shown, and we have done our best to retain as many as possible. We have recruited 90% of former staff into the new system, but some positions have become redundant due to the need to eliminate duplication,” Nankabirwa said.

The government aims to improve efficiency, reduce power losses, and lower operational costs to ensure affordable electricity tariffs for consumers.

Officials are also working to upgrade the power distribution infrastructure, tackle vandalism, and expand rural electrification under the new public-led model.

While the transition is seen as a necessary step towards greater government control of electricity supply, stakeholders have raised concerns about its impact on service delivery, particularly as UEDCL restructures its workforce.

There are calls for a smooth handover process to avoid disruptions in power distribution.

As the transition progresses, the Ministry of Energy has pledged to closely monitor the process and provide the necessary support to both affected employees and consumers, ensuring a seamless shift from Umeme to UEDCL.

 

 

 

 

 

Source: https://energynewsafrica.com


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