On 3^1st March 2025, Umeme Limited officially handed over the national electricity distribution assets to the Uganda Electricity Distribution Company Limited (UEDCL), marking the end of Umeme's 20-year concession and the return of distribution infrastructure to government control.

This historic transition restores full ownership and operational responsibility of Uganda’s electricity distribution to the state through UEDCL. The move is expected to enhance service efficiency and reduce electricity costs, aligning with the government’s broader objective of universal access and affordability.

The Electricity Regulatory Authority (ERA), which played a central role in facilitating the transition, oversaw a comprehensive asset verification process, managed financial settlements, and supported UEDCL in strengthening its operational capacity to ensure continuity and service quality. According to ERA, the transition is part of Uganda’s long-term strategy to reinforce public sector oversight in critical national utilities.

During its two-decade tenure, Umeme registered significant milestones in the electricity sector, including growing the customer base to over 2.3 million, reducing distribution losses from 33% in 2005 to 16% in 2024, and maintaining robust revenue collection rates. UEDCL has committed to building on these achievements by expanding grid access, further reducing losses, and improving customer experience.

The handover ceremony, held in Kampala, was presided over by the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa Ssentamu, and attended by key stakeholders from government, Parliament, ERA, Umeme, and UEDCL.

Hon. Nankabirwa reaffirmed the government’s commitment to lowering electricity tariffs. “This transition is in line with President Museveni’s directive to make electricity more affordable. We are confident that UEDCL is equipped to provide reliable and efficient service to all Ugandans,” she said.

ERA Chief Executive Officer, Eng. Ziria Tibalwa Waako, emphasized the Authority’s commitment to ensuring a seamless transition and the continued sustainability of the electricity sector. “We acknowledge the gains achieved during Umeme’s concession era. As we move forward, ERA will remain focused on promoting efficiency, reliability, and affordability in electricity distribution,” she stated.

UEDCL pledged to maintain and scale the digital innovations and service delivery models introduced by Umeme, including prepaid metering and mobile payment platforms. The company is also expected to accelerate rural electrification efforts and grid expansion to underserved areas.

ERA commended the Ministries of Energy and Finance for their strategic guidance, which ensured a transparent and collaborative transition process.

As Uganda embarks on this new chapter in energy distribution, the government has reassured the public of continued service delivery, stable tariffs, and a strengthened focus on achieving universal access to electricity.

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