UEDCL SYSTEM ROT! SH8.1BN POWER DEAL… SH25BN CAA CONTRACT! Spanish Firm Indra Group On Spot Over Vending Software Failures as Losses Pile Up
KAMPALA — Uganda Electricity Distribution Company Limited (UEDCL) is facing scrutiny over the reliability and cost of its electricity vending system supplied by Spanish technology giant Indra, after recurring software failures raised concerns about customer service and potential revenue losses.
The vending system, which went live on December 4, 2024, is used to process prepaid electricity purchases.
The system has often experienced recurring breakdowns. And towards the end of the month it is always worse.
The failures have raised questions about the system’s reliability, capacity and technical support, especially given the critical role it plays in collecting electricity payments from millions of consumers.
Indra has now Officials have been asked to provide details of the system’s procurement, specifications, certification, supplier and cost.
INDRA’S MULTI-MILLION-DOLLAR UGANDA DEALS
Indra is not new to Uganda’s critical infrastructure sector.
The Spanish technology company was brought in by UEDCL predecessor Umeme at US$2.2 million contract (about Shs8.1 billion) to provide and implement utilities management technology for Umeme.
The project involved the deployment of Indra’s Open SGC and Open SGI systems to support customer management, billing, collection and network incident management.
Indra described then Umeme contract as a major entry into Uganda’s utilities market and part of its wider expansion across Africa.
The company’s Open Utilities technology has also been deployed by electricity and water utilities in several countries, including Ethiopia, Kenya, Zambia and Zimbabwe.
Indra also has another major contract in Uganda involving the Civil Aviation Authority (CAA).
The company was awarded a €6.6 million contract, which was about Shs25 billion at the exchange rate applicable at the time, to implement air traffic control and surveillance systems at Entebbe International Airport.
The CAA contract was reportedly awarded through an international tender and was Indra’s first contract in Uganda.
This means the company has had a presence in two highly sensitive sectors — electricity distribution and aviation — where the reliability of technology is critical to public services and national infrastructure.
QUESTIONS OVER UEDCL SYSTEM
The latest concerns, however, are centred on the electricity vending platform now operated under UEDCL.
The system’s recurring failures have raised questions over whether the technology is adequately handling transaction volumes, particularly during peak periods.
Month-end failures are particularly worrying because they can affect customers trying to purchase electricity when household and business demand for prepaid units is high.
A failure in the vending system can leave customers unable to complete transactions, while also potentially disrupting UEDCL’s revenue collection.
The company is therefore expected to explain the cause of the breakdowns and whether the problems are related to the software itself, network connectivity, system capacity or other technical infrastructure.
Questions have also emerged over the procurement process and the value for money delivered by the system.
Indra officials have been directed to provide documentation showing how the system was procured, the specifications it was required to meet, its certification and the amount paid.
The scrutiny comes at a sensitive time for UEDCL, which assumed responsibility for electricity distribution following the end of Umeme’s concession.
The distributor is under pressure to demonstrate that it has the systems and capacity required to manage the national electricity distribution network efficiently.
The vending platform is central to that responsibility because prepaid electricity sales depend heavily on its reliability.
For consumers, repeated software failures can mean frustration, delays and difficulty accessing electricity after making payments.
For UEDCL, prolonged or recurring system failures could translate into delayed transactions, customer complaints and possible revenue leakage.
The company will now have to demonstrate that the system is stable, properly supported and capable of handling Uganda’s growing electricity customer base.
The scrutiny of the Indra-supplied system also comes amid wider concerns about UEDCL’s preparedness, including rising electricity distribution losses.
UEDCL officials recently reported that energy losses had increased to about 18.5 percent, compared with approximately 15 percent at the time of the handover from Umeme.
The combination of rising losses and vending system problems is likely to increase pressure on UEDCL to prove that its operational and technological systems are ready for the demands of running Uganda’s electricity distribution network.
LEADERSHIP QUESTIONS DEEPEN
Beyond the vending system concerns, questions are also being raised about UEDCL’s leadership and governance at a time when the utility is expected to demonstrate that it is fully prepared to manage Uganda’s electricity distribution network.
Several key positions remain vacant or occupied in an acting capacity.
The UEDCL board is also not yet fully constituted, raising concerns about oversight, accountability and the ability of the utility to make long-term strategic decisions.
Among the senior positions affected is that of Managing Director, currently occupied in an acting capacity by Joselynne Rwakakooko.
The leadership gaps have fuelled calls for the Ministry of Energy to move quickly and ensure that UEDCL gets a fully constituted board and substantive heads of key departments.
Critics argue that prolonged acting appointments can weaken accountability, particularly when an institution is undergoing a major transition and facing operational challenges.
The leadership question comes as UEDCL grapples with rising distribution losses, technology concerns and the need to make major investments in the network.
NEW INDRA BOSSES UNDER PRESSURE
Meanwhile, at Indra Group, the company’s newly appointed leadership is now under pressure to ensure that concerns surrounding its Uganda operations do not cast a shadow over the new management’s tenure.
Indra Group underwent a major leadership change this year, with Ángel Simón taking over as Chairman and Josep Maria Recasens becoming Chief Executive Officer.
Simón, born in Manresa, Barcelona, in 1957, brings more than four decades of experience in infrastructure, energy, environment and public services.
He previously served as Chief Executive Officer and later Executive Chairman of AGBAR, where he oversaw the company’s transformation and international expansion.
He also served as Executive Vice President of Suez between 2013 and 2022 and Executive Vice President of Veolia from 2022 to 2024.
From January 2024 to May 2025, Simón was Chief Executive Officer of CriteriaCaixa.
He has served as Chairman of Indra Group’s Board of Directors since April 2026.
His arrival places a highly experienced corporate leader at the top of Indra as the company faces questions in Uganda over the performance of its electricity vending technology.
The other key new face is Recasens, who took over as Chief Executive Officer this year.
Born in Girona in 1976, Recasens is an industrial engineer with extensive experience in the automotive industry.
He spent 19 years at SEAT, part of the Volkswagen Group, before joining Renault Group, where he rose through senior strategy and business development roles.
At Renault, he became General Manager of the Group’s Iberia operations in 2023 before being appointed CEO of Ampere, Renault’s electric vehicle and software subsidiary, in 2025.
He also served as President of the Spanish Association of Automobile and Truck Manufacturers from June 2024 to June 2026.
The new Indra leadership now inherits a company with major interests in Uganda, including technology deployed in the electricity distribution sector and a substantial aviation contract.
With UEDCL’s vending system now facing scrutiny over recurring software failures, the spotlight is likely to remain on whether the technology is delivering the reliability and value expected from a major international technology provider.
For Indra’s new bosses, the challenge is to ensure that problems associated with existing systems are addressed decisively and do not become a stain on their new tenure.
For UEDCL, the bigger question is whether its leadership structure, governance and technical capacity are strong enough to deal with the mounting challenges facing the electricity distributor.
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