Umeme Limited, the main power distributor in the Republic of Uganda, has officially handed over electricity distribution infrastructure to the government following the expiration of a 20 year-old concession on, March 31, 2025.
Earlier this month, Ugandan Parliament approved $190 million loan for the government to payout Umeme Limited to enable it recover its investment for the past 20 years, and this portal understands the company received $118 million payout last Friday.
The handing over ceremony which was held at the Umeme Lugogo office in the Industrial Area, Kampala, was attended by host dignitaries including the Minister for Energy and Mineral Development, Hon. Ruth Nankabirwa Ssentamu, Umeme Managing Director, Selestino Babungi, and officials from the Uganda Electricity Transmission Company (UETCL).
Henceforth, electricity distribution in Uganda will be undertaken by the state-owned Uganda Electricity Distribution Company Limited (UEDCL) that initially managed electricity distribution before the Umeme concession began.
Taking to social media platform X, Energy and Mineral Development Minister Ruth Nankabirwa wrote: “Today, I presided over the handover of @UmemeLtd Umeme Limited’s electricity distribution assets to Uganda Electricity Distribution Company Limited (UEDCL). This marks the end of Umeme’s 20-year concession and a significant step in Uganda’s second-generation energy reforms.”
She added that UEDCLTD now assumes full responsibility for electricity distribution, aiming to enhance financial sustainability, expand access and improve reliability. It would maintain service continuity, with improvements to the network and services to ensure reliable electricity supply.
In a public advisory, UEDCL has assured customers that all electricity services would remain uninterrupted throughout and beyond the transition.
“Electricity vending and loading will continue normally via MTN, Airtel, banks, and other collection platforms,” the company said.
Despite the handover, public concern remains high about the risk of disruptions to electricity supply as Uganda transitions from a private distributor to full government control.
UEDCL has pledged continuity and stability as it assumes full operational control starting April 1, under ERA Licences No.ERA/LIC/DIS/024/231 and ERA/LIC/DIS/024/232.
With the curtain finally closing on Umeme’s controversial but pivotal two-decade run, all eyes are now on UEDCL and the government to deliver reliable power and usher in a new era for Uganda’s electricity sector.
Umeme’s 20-year concession in Uganda’s electricity distribution has been a mixed bag.
On one hand, the company has made significant contributions to the country’s power sector, including expanding electricity access from less than 5% to over 25% of the population, reducing energy losses from 38% to below 15%, and investing over $800 million in infrastructure to improve power reliability.
Source: https://energynewsafrica.com
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