The Uganda Electricity Distribution Company Limited(UEDCL) has allayed any fears that it will not manage the huge task ahead as it takes over power distribution from Umeme.
“Every noble acquisition is attended with its risks; he who fears to encounter the one must not expect to obtain the other. UEDCL is committed to improving reliability in the country by deploying all the investment resources with technology to spur social economic transformation.We commit to fulfilling our ERA parameters as embedded in the license issued by the Authority on 31 December 2024,” UEDCL Managing Director , Paul Mwesigwa said on Monday as the company officially took over from Umeme.
Ugandans have expressed scepticism over the ability by the government agency to take over from Umeme after the expiry of its 20 year concession.
Speaking on Monday at Lugogo, the UEDCL Managing Director said nothing to fear as they have everything set.
Mwesigwa said over the past two decades, UEDCL, has taken over 5 concessions, including Ferdisult Engineering Limited (2017), Bundibugyo Energy Cooperative Society (BECS, 2021), Pader Abim Community Multi-Purpose Energy Society (PACMECS, 2023), Kyegegwa Rural Energy Cooperative Society Limited (KRECS, 2024) and Kilembe Investments Limited (2024).
He said with Umeme becoming the sixth concession, it shows they have the capacity to handle power distribution, even better than their predecessor.
“All the above takeovers undertaken are informed by a deliberate philosophy that aligns with clear regulatory environment. UEDCL Management under the guidance of the Board follows the following principles in concession takeovers; regulatory notice, due diligence on the network to ascertain integrity, submission of the tariff, restricted recruitment that is fair and competitive, and investment there after for business performance actions.”
“Resultantly, business in all service territories taken over have grown and services improved, making them sustainable. For example, when we took over Ferdisult in 2017, the electricity energy loss target was 28% and today, we stand at 18.1%.”
He said UEDCL has already commenced with all the critical procurements (network and non-networks) requirements needed to ensure business continuity after Umeme.
“We immediately on January 6 2025 embarked on recruitments and as we speak today, Hon Minister, at least 99.6% of the employees in respect of the above structure have been appointed, the 0.4% of about 11 employees will be done by close of business today. We did a water tight recruitment exercise.”
“ On ICTs, all systems (in Umeme and UEDCL) shall be maintained. These are on our ledger and we shall continue deploying them until the time when we will merge them without interrupting service delivery. Buying electricity units and other services will remain uninterrupted through channels (MTN & Airtel), banks and other collection platforms. In addition to the above, all electricity units purchased by customers before Umeme’s exit shall remain valid even after Umeme’s exit.”
