Uganda Electricity Distribution Company (UEDCL) officially took over electricity distribution from Umeme, whose concession expired today.
The journey started way back in 2005 when government of Uganda signed an agreement with Umeme to improve on the power services.
Umeme Managing Director, Selestino Babungi, said it had been a long but fruitful journey for the company.
“We are handing over a growing entity which formerly collected Shs 160 billion per year and now gets over Shs 2.3 trillion,” he said.
Patrick Bitature, the board chairman of Umeme, said when they took over 20 years ago, the entity was embroiled in corruption scandals.
“As a private businessman on the Umeme board, I had to explain to the entire management that things had to change and indeed, after three years it changed,” he said.
He said before Umeme took over in 2005 power losses amounted to 38%, but this had declined to 16% at the time of the handover.
The minister of Energy and Mineral Development, Ruth Nankabirwa, said the transition was good for Ugandans, adding that UEDCL will do a fine job.
“Ugandans should not get worried. We shall sort out any remaining issues with Umeme because they are still finalising some work,” she said.
UEDCL’s managing director, Paul Mwesigwa, said they were more than ready to give Ugandans better services.
He said as soon as the takeover is complete, UEDCL will add 300,000 new customers to the national grid.
The decision to end Umeme’s concession was taken by cabinet in 2022 after it felt that the agreement was unfair to the country.
However, the process has been marked with disagreements over the money for the buyout.
