Kampala, Uganda – Ugandan Cabinet has announced that it will not renew UMEME’s concession, which is set to expire on February 28, 2025. Instead, the government has granted UMEME a one-month transition period, ending on March 31, 2025.
According to Honourable Chris Baryomunsi, Minister for Information, Communications Technology, and National Guidance, the decision is driven by the need to explore more effective solutions for the expansion and upgrading of the country’s electricity distribution network.
“We want to manage it ourselves,” Baryomunsi stated, emphasizing the government’s desire to take control of the distribution function.
The Uganda Electricity Distribution Company Limited (UEDCL) will take over the distribution of electricity after UMEME’s concession ends.
Background
In 2003, Eskom Uganda Limited was leased the generation of electricity for 20 years. Two years later, in 2005, UMEME was also granted a 20-year concession to manage Uganda’s electricity distribution network. Eskom’s concession expired in April 2023 and was not renewed.
The Uganda Electricity Board (UEB) was initially unbundled into three entities:
1. Uganda Electricity Generation Company Limited
2. Uganda Electricity Transmission Company Limited
3. Uganda Electricity Distribution Company Limited
Implications
The government’s decision is expected to have significant implications for UMEME’s operations and investments in Uganda. With the concession ending, UMEME may not invest in new electricity distribution and supply systems.
The Ugandan government is expected to work with its electricity body UEDCL to ensure a smooth transition and minimize disruptions to electricity supply.
