UMEME Operations End April 1st 2025 - ERA Hands Over Electricity Sales, Distribution Licenses To UEDCL

 The Uganda Electricity Distribution Company Limited (UEDCL) is set to take over from UMEME Limited the distribution and sale of electricity across Uganda starting April 1st, 2025.

Today the, Electricity Regulatory Authority (ERA) has officially handedover the distribution and sales licenses to UEDCL at the Uganda Media Center in Kampala.

 The transition marks the end of Umeme Limited's operations in Uganda after years of managing the electricity distribution network.

Speaking at the event, UEDCL Managing Director, Mr. Paul Mwesigwa, assured Ugandans of a seamless transition, emphasizing the company’s readiness to deliver reliable and affordable electricity to all Ugandans.

 Mwesigwa revealed that UEDCL plans to invest $350 million for five years, starting from 1st April 2025.

This strategic investment will focus on stabilizing the backbone of the electricity network, ensuring consistent power supply across the country. 

“This significant investment will address the longstanding issues in the distribution network and expand access to electricity in areas that have historically faced power shortages,” Mwesigwa stated.

 Mwesigwa also  revealed that UEDCL’s electricity tariffs will be set at a lower rate compared to the 20% rates charged during Umeme's tenure.

This reduction is part of UEDCL’s commitment to making electricity affordable and accessible to all.

He also announced that all new customers seeking to connect to the national power grid would be connected within 10 days.

 The payment process will be fully digital, eliminating delays and ensuring transparency.

 Mwesigwa noted that UEDCL’s stores are fully stocked with the necessary materials to handle the increased demand for electricity pledging that the company would ensure a smooth transition for existing customers and maintain uninterrupted service delivery during the takeover.

 “The backbone of the network will remain stable, and Ugandans can expect reliable electricity as we implement these upgrades and expand coverage,” he said.

 Presiding over the ceremony the Minister of Energy and Mineral Development, Hon Dr Ruth Nankabirwa Ssentamu with ERA officials, expressed confidence in UEDCL’s capacity to manage the national distribution network effectively.

"I extend my appreciation to Umeme Ltd for its commendable work in loss reduction, improved revenue collection, infrastructure development, system improvement, and advancing electricity access during its tenure. I call upon all Ugandans to protect the electricity infrastructure, fulfil their obligations by paying for electricity services, and refrain from power theft and /or vandalizing electricity infrastructure—practices that undermine our efforts to provide reliable power supply". Said Hon Nankabirwa.

" To ensure a smooth workforce transition, the Government has set the post Umeme Limited’s organizational structure with a total of 2712 employment openings exclusively for UEDCL and Umeme employees, in line with the Lease and Assignment Agreement for a seamless asset retransfer. These jobs have been availed for you who are already working at UEDCL and Umeme Limited to ensure the continuity of the electricity service without disruptions.The UEDCL Board is responsible for the recruitment of staff. I encourage all eligible employees of the two companies to express interest and/ or apply for the positions matching their qualifications and experience once advertised in the near future. I urge all staff to remain calm and committed to their duties—keep the lights on, manage energy losses responsibly, and uphold professional conduct to safeguard your career prospects. May we all work together to ensure a bright, secure, and sustainable electricity industry for Socio-Economic Transformation our nation" Added Dr Nankabirwa.

 ERA commended UEDCL’s preparation and strategic vision for Uganda’s electricity distribution sector.