The Ministry for energy has officially handed over two licenses of distribution and electricity sale to Uganda Electricity distribution company limited (UEDCL).

Prior to the handover at the Uganda Media Center in Kampala on December 31,2024, Energy Minister Ruth Nankabirwa Ssentamu assured Ugandans that the decision to award UEDCL came after a through process and assessment of UEDCL by the Electricity Regulatory Authority

In September 2024, the distribution company (UEDCL) applied to the Electricity Regulatory Authority (ERA) for two different licenses.

This initiative moved the government a step closer to repossessing all the assets it once possessed before it leased them out to private investors 23 years ago.

Nankabirwa mentioned that the decision started in April 2024 with UEDCL potentially meeting all the criteria.

“We are not worried that UEDCL is taking over the distribution of power , they have handled big projects and will surely manage the transition,” she said.

The minister also assured the electricity company of the government’s full support in availing the necessary resources for the take over and transition.

“The minister of finance is working around the clock to make sure that UEDCL is prepared to offer a seamless transfer and Smooth transfer so that as UEDCL takes over they are always ready for rapid response,” Nankabirwa stated.

Nankabirwa revealed that UMEME’S contract was not renewed because the service that it has been delivering will be delivered by UEDCL at a low cost.

The permanent secretary ministry of energy Irene Batebe stated that as a ministry they had a responsibility to oversee a smooth transition and they are happy that its happening.

“As ministry we were required to have a clear transition process and above all the lights must remain on and we are confident that UEDCL will do a good job and customers will continue having a good experience,” Batebe stated..

The Chief executive officer at Electricity Regulatory Authority (ERA) Engineer Ziria Tibalwa Waako reassured existing UMEME staff of continued employment as many will be retained by UEDCL.

“Am pleased to note that in previous transitions over 98% of staff were retained by the government of Uganda and as part of this transition all staff will receive new terms of employment aligned with the approved framework for operations post March 2025,” Waako said.

UEDCL Board Chairperson, Francis Tumuhairwe said that they shall have a smooth transfer since all the necessary conditions have been put in place and assured Ugandans of constant power supply.

“Ugandans will continue to have their homes lit and other manufactures will be provided with power and there will be steady supply,” he said.

UMEME’S concession expires at the end of March 2025. The company covers nearly 95 per cent of Uganda’s electricity distribution network.

The company, which is listed on the Uganda Securities Exchange, says it has invested more than $500 million in Uganda’s distribution network.