UMEME Limited has officially handed over its Electricity Distribution License to the Uganda Electricity Distribution Company Limited (UEDCL), marking the end of UMEME’s two-decade tenure in managing Uganda’s power distribution network. The handover ceremony, held in Kampala on December 31, 2024, was presided over by Ruth Ssentamu Nankabirwa, the Minister of Energy and Mineral Development, alongside officials from the Electricity Regulatory Authority (ERA).
UMEME’s 20-year concession, which began in 2005, brought notable changes to Uganda’s electricity sector, including expansions in grid coverage and improvements in service delivery. However, the transition to UEDCL represents a strategic shift aimed at consolidating electricity distribution under government management to ensure affordability, reliability, and universal access to power.
Speaking at the ceremony, Minister Nankabirwa commended UMEME for its contributions to the energy sector while expressing optimism about the future under UEDCL’s stewardship. “Today marks a significant milestone in Uganda’s journey towards achieving a sustainable, efficient, and inclusive electricity distribution system,” she said. “We thank UMEME for its service and look forward to UEDCL advancing our energy agenda for all Ugandans.”
The transition comes amid growing demand for reliable electricity in both rural and urban areas. UEDCL, a state-owned enterprise, is expected to prioritize rural electrification, reduce power losses, and address affordability concerns. To ensure a seamless handover, UMEME and UEDCL have jointly developed a transition plan that includes staff transfers, asset management, and stakeholder engagement.
Eng. Paul Mwesigwa, UEDCL’s Managing Director, assured stakeholders of the company’s readiness to take on the new role. “We are committed to delivering efficient and customer-focused electricity services. Our focus will be on ensuring uninterrupted supply, expanding the grid, and addressing challenges such as power theft and system inefficiencies,” he said.
UMEME’s Managing Director, Selestino Babungi, expressed gratitude to the government and customers for their support over the years. “We are proud of the progress achieved and confident that UEDCL will build on this foundation,” he stated.
UEDCL will officially assume its electricity distribution mandate on April 1, 2025, signaling a new era for Uganda’s energy sector.