The Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu, has awarded a license for power distribution to Uganda Electricity Distribution Company Limited (UEDCL), taking over from UMEME.
According to Minister Nankabirwa, UEDCL on Tuesday, November 31, 2024, at the Uganda media center in Kampala, the awarded license includes selling and distributing electricity in Uganda, and the new license will take effect from April 1, 2025.
She also noted that UEDCLTD will receive back its 20-year lease assets from UMEME Limited on April 1, 2025.
“This is in line with ongoing efforts to enhance energy access. The Government of Uganda, through the Ministry of Energy and Mineral Development, today has issued a license to Uganda Electricity Distribution Company Limited (UEDCLTD), authorizing the distribution of power across the country, Nankabirwa said.
As an electricity distributor, UEDCL has been licensed to distribute and supply electricity to customers. This mandate involved the operation, maintenance, and upgrade of electricity distribution infrastructure, electricity retail, and the provision of related services.
Speaking at the 2024 Power Forum at Mestil Hotel in Kampala, Eng. Ziria Tibalwa Waako, executive director of the Electricity Regulatory Authority (ERA), reassured stakeholders that UEDCL has expanded its board to include experts in various sectors to strengthen its leadership and capacity to take over from UMEME.
Since UMEME’s inception in 2005, it has improved Uganda’s power sector, increasing distribution efficiency from 50% to 83% by 2021 and reducing energy losses from 38% to 18%.
However, with UEDCL taking over, the public is optimistic that the exit of UMEME could make power tariffs affordable in Uganda, as there will not be huge administrative costs as a result of a third party.
