Uganda's Electricity Distribution Gets a New Manager

KAMPALA, UGANDA | XTRAfrica News – A big change has happened in Uganda’s electricity sector. Uganda Electricity Distribution Company Limited (UEDCL) has officially taken over from Umeme after the 20-year electricity distribution agreement came to an end on March 31, 2025.

With this move, UEDCL now manages over 34,000 kilometers of electricity lines and around 170,000 transformer zones across Uganda. They have also taken over about 3,000 Umeme staff members and many other assets in every district where Umeme used to operate.

But this big switch has left many Ugandans wondering: Can UEDCL do a better job than Umeme?

Who is UEDCL and Can They Handle It?

UEDCL is not new. It was formed in 2001 after Uganda Electricity Board (UEB) was split. Even though it owned the electricity network, most Ugandans didn’t know much about it because Umeme was the main service provider.

Paul Mwesigwa, who now leads UEDCL, is not a stranger to this industry. He used to work at Umeme as the head of Internal Audit and Risk Management. He said that UEDCL has been closely monitoring Umeme over the years and believes the transition will be manageable, though some challenges are expected.

UEDCL has already been running smaller, off-grid stations that were not part of Umeme’s contract. These areas were considered unprofitable, but Mwesigwa says UEDCL made them self-sustaining. For example, Bundibugyo Energy Cooperative Society (BECS) returned to UEDCL in 2021 after 10 years, and now it operates without needing government subsidies.

Apart from the main grid, UEDCL manages eight service territories and a pole treatment plant. In 2022, a cabinet decision also gave them control of five private concessions. President Museveni instructed that private electricity licenses should not be renewed and that UEDCL should take over these operations.

Mwesigwa believes their good performance, digital systems, and financial transparency helped earn the government’s trust.

The company has received a $74 million loan to support its operations. Umeme also handed over a $700 million revenue business, and UEDCL hopes to grow that by at least 10% each year.

UEDCL quickly hired needed staff using both online and physical interviews in just 75 days. Mwesigwa says their digital systems made this possible.

Still, there are concerns about how UEDCL will handle human resource issues. Umeme has promised to support UEDCL for six months during the transition. Additionally, World Bank experts will help guide the process.

Improving Operations and Reducing Losses

UEDCL hopes to reduce electricity losses in rural areas to below 14%. Umeme had lowered national energy losses to around 16% by the time it left. Reaching this goal will require strong systems and more government investment.

One concern is the law that controls public procurement. Some experts think the PPDA law should be changed to help UEDCL buy what it needs faster and more efficiently.

Mwesigwa emphasized that every electricity unit must be paid for. “If we connect you, you must pay,” he said. UEDCL already has 99% of its customers using prepaid meters, including medium-sized factories and government offices.

He promised to clear all pending connections left by Umeme. “Our warehouses are full. Within ten days, we will start deliveries. All pending connections will be completed in three months,” he said.

UEDCL aims to connect 300,000 new customers before the end of 2025. He added, “We already have most of the materials. We will reach that target.”

New Power Prices and More Value for Ugandans

Uganda’s Electricity Regulatory Authority (ERA) says customers will now get better value. The new pricing system introduced by UEDCL means lower rates for small users, and reduced costs for industries and essential services like hospitals.

How Much Power Will You Get Now?

• First 15 units (lifeline): Shs250 per unit→ Shs1,000 = 4 units→ Shs10,000 = 40 units

• After 15 units: Shs756.2 per unit→ Shs1,000 = 1.3 units→ Shs10,000 = 13 units

This means small users who don’t consume much electricity benefit the most. Before, Umeme’s lifeline units were more expensive, giving fewer units for the same amount of money.

Rates for Businesses and Public Services

• Large factories (off-peak): Shs231.6 per unit

• Public hospitals and streetlights: Shs360 per unit

Dr. Sarah Wasagali Kanaabi, ERA’s chairperson, said these new rates will help lower business costs and boost industrial growth. “If factories pay less, the price of goods might go down,” she said.

This transition marks a new chapter in Uganda’s electricity distribution. While UEDCL has big shoes to fill, the leadership, support systems, and financial backing suggest it is ready to meet the challenge.

ERA has promised that Ugandans will get better services, and UEDCL is ready to deliver on that promise.

For more information, ERA encourages people to check their website at www.era.go.ug or contact their offices.