The Ministry of Energy and Mineral Development, Ruth Nankabirwa has officially handed over two licences to UEDCL to distribute and sale electricity in the country , replacing Umeme.
The handover was done at the Uganda Media Centre in Kampala.
Speaking during the ceremony, Minister Nankabirwa expressed confidence in UEDCL doing a good job.
“I am not worried at all since UEDCL have assured me they are ready for the job. As government, we are prepared to take on the mantle of power distribution and sale,” Nankabirwa said.
She said UEDCL is currently managing Nalubaale, Isimba, Karuma and Kiira dams, noting that this is proof enough of their ability to manage power distribution.
The minister said during the transition period from Umeme to UEDCL, government’s top priorities will remain affordability, access, reliability and quality for electricity in the country.
She said the existing tariff packages as approved by ERA will remain operational while in a bid to achieve university electricity access by 20230 using both on grind and off grid solutions, the implementation of the Electricity Access Scale Up Project will continue.
Nankabirwa commended Umeme for a commendable job in reducing energy loss, improved revenue collection, infrastructure development, system improvement and advancing electricity access during its tenure.
She also allayed fears by Umeme staff.
“To ensure a smooth workforce transition, government has set the post Umeme’s organized structure with a total of 2712 employment openings, exclusively for UEDCL and Umeme employees in line with the lease an assignment agreement for seamless asset retransfer,” Nankabirwa said.
UEDCL board chairperson, Francis Tumuheirwe said they are ready for the job.
“We shall see a seamless transfer from Umeme to UEDCL. All necessary conditions are in place to ensure we do a good job. Ugandans need to be rest assured that we shall do a good job,” Tumuheirwe said.
“I want to promise Ugandans that they will continue to have their homes lit . Manufacturers and business will continue to have power. We have been doing this for over 20 years, only that we have been doing it outside the big cities. I want to assure Ugandans there will be a steady supply of power.”
The transition follows Umeme’s 20-year concession that began in 2005. During its tenure, Umeme played a pivotal role in expanding electricity access, improving system infrastructure, and reducing technical losses.
However, the end of this contract paves the way for UEDCL to take over and further improve the country’s electricity distribution network.
