ERA Licenses UEDCL to Operate the Rwenzori Service Territory
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On 1st April 2021, the Uganda Electricity Distribution Company Limited (UEDCL) assumed the operation and management of the Rwenzori Service Territory, formerly managed and operated by Bundibugyo Energy Cooperative Society Limited (BECS). The Rwenzori Service Territory covers the Districts of Bundibugyo, Ntoroko, and some parts of Kabarole in South Western Uganda.
The Licensing of UEDCL to Operate and Manage the Rwenzori Service Territory followed the Electricity Regulatory Authority (ERA’s) Decision not to Renew the Distribution and Sale of Electricity License No. 084 issued to the Bundibugyo Energy Cooperative Society Limited (BECS) due to Non-Compliance to License Terms and Conditions.
On 1st January 2011, the Authority issued Licence No. 084 to Bundibugyo Energy Cooperative Society Limited for Distribution and Sale of Electricity in the Rwenzori Service Territory for a term of 10 (Ten) years. The License expired on 31st December 2020 and was extended for three months until 31st March 2021.
The Rwenzori Service Territory was officially handed over by the Asset Owner, the Rural Electrification Agency (REA) to Uganda Electricity Distribution Company Limited on 31st March 2021.
Addressing stakeholders at the handover ceremony, Eng. Cecilia Menya, who represented the Minister of Energy and Mineral Development, noted that the Government of Uganda was committed to ensuring good service delivery in the Electricity Supply Industry. She urged electricity consumers to support UEDCL for smooth service provision.
Speaking at the handover ceremony, the ERA Chief Executive Officer, Eng. Ziria Tibalwa Waako, noted that the Authority had made the decision not to renew the License for Distribution and Sale of Electricity held by BECS based on a ten-year assessment of BECS’ performance, which indicated that BECS was no longer able to meet its obligations under the License. Eng. Waako confirmed that all possible measures had been taken to ensure continuity of Electricity Supply in the Rwenzori Service Territory.
She further noted that ERA had followed proper criteria in appointing UEDCL to take over the Rwenzori Service Territory as permitted by the Electricity Act. Eng. Waako expressed ERA’s confidence in UEDCL’s ability to perform its role in the newly acquired Service Territory as required.
The official handover of the operation and management of the network, assets, and customers of BECS to the Government-Owned Uganda Electricity Distribution Company Limited was held at the Bundibugyo District Headquarters, witnessed by key stakeholders including the Leadership of Bundibugyo and Ntoroko Districts, the Member of Parliament for Bwamba County, Hon. Gafabusa, the Representative of the Omudingiya Wa Bwamba, Religious Leaders, Rural Electrification Agency and Uganda Electricity Transmission Company Limited.
The leadership in the affected Districts thanked BECS for the work done and welcomed UEDCL, confirming their support towards UEDCL’s operations.