UEDCL’s Take Over of Power Distribution boosting Electricity access, infrastructure & reliability–Minister Okaasai

The Uganda Electricity Distribution Company Limited (UEDCL), a company which is 100% owned by the Government of Uganda (GoU) through the Privatization Unit of Ministry of Finance Planning and Economic Development (MoFPED) has officially taken over power distribution operations in the Western Service Territory. The territory covers the districts of Mitooma, Sheema,Rubiriza, Buhweju ,Kasese and Bushenyi.  

Presiding over the receipt of Government’s Electricity Distribution Assets from Kilembe Investment Limited (KIL) and subsequently handing them over to UEDCL for Operation and Maintenance at Rwenzori Square in Kasese Municipality, the Minister of State for Energy, Mr  Okaasai Sidronius Opolot who was represented by Dr Patricia Litho,  the Assistant Commissioner for Communication and Information Management at the Ministry of Energy and Mineral development noted that government is currently undertaking the Second-Generation power sub-sector reforms some of which and many of these have been gradually implemented in the past few years.   

The Managing Director of Uganda Electricity Distribution Company Limited (UEDCL), Paul Mwesigwa, addressing the gathering at Rwenzori Square in Kasese

‘’In this regard, the cabinet made a resolution that all private concessions in the distribution space should not be renewed at their natural expiry, but instead should be taken over by the Government entity.  Consequently, UEDCL has taken over four electricity concessions in the last 7 years. In the same regard, the government has already cleared UEDCL to takeover Umeme Limited come 01st April 2025 and the process is on schedule. It is important, therefore, that UEDCL being a major distribution asset owner and government institution, appropriately positions itself to operate sustainably to deliver this national long-term goal, towards social – economic transformation of Uganda through increased electricity access and at the same time investing appropriately into the network’’, said Okaasai.  

He added that UEDCL , which  operates eight  service territories under the license for electricity distribution and sale as issued by the Electricity Regulatory Authority, should pay attention to; Implementing the Electricity Connections Policy to accelerate Electricity access; improve distribution infrastructure which to boost reliability and security of Power Supply; Energy loss within the service territory and across other areas of the country; Vandalism of electricity equipment which increases the operation and maintenance costs; and,the need to establish a customer service friendly environment, like a robust vending system where electricity consumers make payments for electricity electronically from the comfort of their homes and businesses.  

‘’Despite the challenges, I am Confident that you will deliver on your mandate. I would like to emphasize the importance of Transparency and Accountability as you undertake your role; as well as Value-for-Money for the millions of electricity consumers in Ugandans. There is currently some redundant electricity in this sector which is mainly due to significant unutilized energy because of a knowledge gap on the use of electricity to enable development and suppressed demand as a result of the limited strength of the distribution network. This requires deliberate efforts to plan and invest in both segments in order to consume this electricity’’, added Okaasai highlighting that the sector has got many more opportunities, and thus Kilembe Investment Limited (KIL should participate in the other openings available in the distribution space since they have got the experience.  

Officiating at the event, Pauline Irene Bateebe, Permanent Secretary of the Ministry of Energy and Mineral Development (MEMD), said that government has demonstrable trust in UEDCL, having taken over now the 5 concessions in the last 10 years, and they are about to close the concession of Umeme that naturally terminates on 1 April 2025,  

‘’The country and public are all counting on you, please continue to make us proud (UEDCL).The ministry takes note that UEDCL has been taking on concessions whose license expire, and with the reports downstream, we can attest that they will do a good job ranging from operations, employment of staff, and implementing key GoU strategies like Free Electricity Connections Policy and Electricity Access Scale up project. To the people in the political districts of Buhweju, Kasese, Rukungiri, Sheema, and Mitooma kindly accord UEDCL all the support as we foster GoU strategies to improve access and reliability. The company is tested and has demonstrated abilities to distribute power and operate the distribution system’’, Batebe said.  

On behalf of UEDCL, Paul Mwesigwa, the managing director, UEDCL has taken over four electricity concessions in the last 7 years including; FERDSULT engineering Limited in 2017, Bundibugyo Energy Cooperative Society (BECS) in 2021, Pader Abim Community Multi-Purpose Energy Cooperative Society (PACMECS) in 2023 and Kyegegwa Rural Energy Cooperative Society (KRECS) Limited in 2024 and now it takes over operations of Kilembe Investments Limited (KIL).  

‘’We welcome the new team from KIL and congratulations. Now you’re national employees, you can be deployed anywhere in the country since we operate border-to-border. Our core values are: Teamwork, Commitment, Integrity and Trust’’, Mwesigwa added, emphasizing on Corruption that since utility company’s staff are always in the field, Integrity is KEY.   

‘’We don’t have room for corruption, as this will lead to immediate dismissal for any staff caught engaging him/her staff in the verse’’, he cautioned.  

UEDCL is 100% owned by the GOU, with 2 shareholder’s Minister of Energy & Mineral development and the 2nd shareholder being Minister of Finance, planning & economic development.  

The company’s mandate include; Ownership of the 33kv and below across the country, Monitoring the asset use for the concession network (Umeme & WENRECO), electricity distribution in the non-concessioned areas, manufacturing pole plant factory at Lugogo and state of readiness to takeover any electricity private distributor as would be guided and licensed by ERA.  Currently, UEDCL has 62 offices across the country, operating in 96 political districts with a total of 487 employees as of 30th September 2024. These numbers are going to change with effect from the 01st of April 2024; They have added; 5 Offices (new 67), districts 6 (new 102) & 28 staff (new 515). Note; we have started by taking 28/46 the total as applied from KIL, the 12 are the waiting list, 1 applicant had reached retirement age and only 5 applicants failed the basic interview of climbing a pole.  

UEDCL’s business principles include; Connecting many customers timely, many power available & reliable, managing energy losses and collect the cash. It’s from those principles that, has enable UEDCL business to expand with energy losses within the approved ERA target and cash collection at 100% as at end of August 2024.