UEDCL Takes Over Electricity Distribution from Umeme After 20 Years

Summary:

• The Uganda Electricity Distribution Company Limited (UEDCL) will replace Umeme Limited as the national electricity distributor starting April 2025, ending Umeme’s 20-year concession. The transition aims to reduce tariffs, improve service reliability, and ensure job continuity for employees. The government is finalizing Umeme’s buyout terms to ensure a seamless handover.

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The Uganda Electricity Distribution Company Limited (UEDCL) has been granted a license to distribute and sell electricity nationwide, marking the end of Umeme Limited’s 20-year concession, which expires in March 2025.

The decision follows government concerns over high electricity tariffs under Umeme’s tenure. UEDCL will assume operations on April 1, 2025, with a focus on affordability, quality, and reliability of electricity supply. The Electricity Regulatory Authority (ERA) reviewed UEDCL’s application, consulting key stakeholders before approving the license.

Energy Minister Ruth Nankabirwa assured continuity of services during the transition and praised Umeme for reducing power losses, improving revenue collection, and expanding electricity access. To support the transition, 2,712 employment positions will be available for UEDCL and Umeme employees.

The government is also working to finalize Umeme’s buyout amount by March 2025, ensuring a seamless transition for Uganda’s electricity distribution sector.

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