The Ugandan government has reaffirmed its readiness to take over electricity distribution from Umeme Ltd through the Uganda Electricity Distribution Company Limited (UEDCL) by April 1, 2025. The Ministry of Energy and Mineral Development (MEMD) has assured the public that all necessary preparations are underway to ensure a seamless transition, marking a significant shift in the country’s electricity distribution sector.

To support this transition, the Ministry of Finance, Planning, and Economic Development is in the final stages of securing $50 million through internal borrowing. These funds, expected to be available by the end of next week, will enable UEDCL to make critical capital investments aimed at improving the quality of electricity distribution services. This financial commitment underscores the government’s determination to ensure that UEDCL is fully equipped to handle the responsibilities of electricity distribution once the concession with Umeme ends.

A key aspect of the transition process is the payment of the buy-out amount to Umeme. This amount represents a claim by Umeme for capital investments made during its concession period that were not recovered by the end of its contract. The government has assured the public that the approval of this payment is in its final stages in Parliament. This step highlights the government’s commitment to honoring its contractual obligations while ensuring a smooth and timely transition.

The Ministry of Energy has also addressed concerns about staffing during the transition. UEDCL has undertaken a restructuring process aimed at enhancing efficiency, avoiding duplication of roles, and ensuring cost-effectiveness in electricity distribution. The recruitment process has been conducted in a fair, transparent, and merit-based manner, ensuring that the most qualified personnel are retained. This approach prioritizes operational efficiency and positions UEDCL to deliver reliable services to Ugandans.

Despite the ongoing preparations, the Ministry acknowledges the current challenges in power reliability. Umeme has been directed to continue fulfilling its contractual obligations until the end of March 2025. Meanwhile, UEDCL is being prepared to take immediate corrective measures to address any issues starting April 1, 2025. This dual approach ensures that there will be no disruption in service delivery during the transition period.

The government’s proactive measures reflect its commitment to improving the electricity distribution sector and ensuring that Ugandans receive reliable and efficient services. By taking over the distribution concession, the government aims to address long-standing challenges and create a more sustainable and customer-focused electricity distribution system.

The transition from Umeme to UEDCL marks a new chapter in Uganda’s energy sector. It represents an opportunity for the government to directly oversee and improve electricity distribution, ensuring that the sector aligns with national development goals. The investments being made in UEDCL, coupled with the emphasis on transparency and efficiency, signal a brighter future for Uganda’s electricity consumers.

As the April 2025 deadline approaches, the government remains focused on ensuring a smooth and successful transition. The steps taken so far demonstrate a clear plan and a strong commitment to delivering on this promise. With adequate funding, a well-structured staffing plan, and a focus on service improvement, UEDCL is poised to take on its new role and drive positive change in Uganda’s electricity distribution sector.

This transition is not just a change in management but a step toward a more reliable and efficient energy future for Uganda. The government’s efforts to ensure a seamless handover reflect its dedication to meeting the needs of its citizens and fostering economic growth through improved energy services. As the countdown to April 2025 continues, all eyes will be on UEDCL to deliver on its mandate and transform Uganda’s electricity distribution landscape.