Energy Minister Ruth Nankabirwa has issued a stern warning to Paul Mwesigwa, the Managing Director of Uganda Electricity Distribution Company Limited (UEDCL), urging a smooth transition as Umeme’s operations come to an end. Nankabirwa emphasized that Mwesigwa has just two years to ensure a stable power supply and improved service delivery, highlighting that his performance would determine whether his contract would be renewed.
The transition is critical as Umeme’s 20-year concession is set to expire on March 31, 2025, with UEDCL taking over electricity distribution from April 1, 2025. Nankabirwa cautioned UEDCL staff to perform better, stating, “I’m not obligated to renew their contracts.” She further stressed that all UEDCL employees are on contract and could be dismissed at any time, as outlined in the company’s Human Resource manual.
However, the government’s readiness to take over the electricity distribution from Umeme has been called into question due to delays in securing the necessary initial investment for UEDCL. The Electricity Regulatory Authority (ERA) raised concerns about the failure to secure the USD 50 million needed for UEDCL’s initial investment. ERA CEO Eng. Ziria Tibalwa Waako expressed doubts about the government’s preparedness, stating that without the funds, the transition might not be as seamless as planned.
“On our side, we aren’t even ready with the USD 50 million for UEDCL to start, let alone the concession agreement wouldn’t allow UEDCL to step in,” Eng. Waako remarked during a session before Parliament’s Committee on National Economy. She added that the government needs to rethink its approach in future contracts, suggesting that UEDCL should have been working alongside Umeme earlier to secure the necessary investments for a smooth transition.
The transition is set to mark a major step in the government’s plan to manage the electricity distribution network more effectively, but this delay in securing the investment raises serious concerns. With the looming deadline and the nation’s eyes on the process, the pressure on UEDCL to ensure a reliable power supply increases.
Meanwhile, Bukimbiri County MP Eddie Kwizera has raised concerns about job security for UEDCL employees. While Minister Nankabirwa has insisted that contracts can be terminated under UEDCL’s Human Resource manual, Kwizera emphasized that there must be job security for all workers. “There must be job security for all employees under UEDCL,” he stated.
As the government aims to expand electricity access to 80% of the population within three years and achieve universal coverage by 2030, the successful and timely transition remains crucial. The Minister’s warning to UEDCL and the ongoing financial uncertainties highlight the challenges ahead for Uganda’s power sector.
