The Ministry of Energy has handed over two licences to UEDCL for the sale and distribution of electricity on the main grid in Uganda.
The development will see Uganda Electricity Distribution Company Limited(UEDCL) take over Umeme’s concession that expires in March.
Speaking during the handover, the UEDCL board chairperson Francis Tumuheirwe allayed fears that could arise out of the take over from Umeme.
“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.
Umeme's 20-year concession expires at the end of March 2025 and comes at a time when government decided not to renew any expiring distribution licenses held by private companies.
However, there have been fears among members of the public about the capability of a government owned company to effectively take over power distribution .
Speaking on Tuesday, the UEDCL board chairperson said having taken over several other concessions in the past and managing them well, coupled with their two-decade experience, they are ready to take over Umeme’s concession.
“We have proved that by taking over other licencees, we can reasonably manage the process. 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,”Tumuheirwe said.
Energy Minister, Ruth Nankabirwa over emphasized the ability of UEDCL managing the sale and distribution of power in the country.
She said currently, UEDCL is managing Nalubaale, Kiira, Isimba and Karuma dams , noting that this is also an assurance of doing a good job.
“ They have assured me they are ready for the job .As government we are not worried.”
Nankabirwa said plans are in the final stages to ensure Umeme and UEDCL staff are retained as the new contract takes effect as part of a seamless transfer .
The Minister however tasked UEDCL to ensure affordability, access , quality and reliability for electricity to ensure Ugandans enjoy power.
She said the target for UEDCL is 400,000 new connections per year, translating into at least 30,000 new connections per month.