The transition for Uganda to reclaim all its electricity assets is now fully in play.
The Uganda Electricity Distribution Company Limited (UEDCL) has officially applied to the Electricity Regulatory Authority (ERA) for two different licenses that Umeme Ltd held, taking government a step closer to repossessing all the assets it once possessed before it leased them out to private investors 23 years ago.
In a notice, ERA said: “The License Applications by UEDCL are with respect to the distribution area currently operated by Umeme Limited, and applicable for the period after the expected natural end of the Umeme Limited distribution and supply of electricity concession, and the respective licenses.”
In December 2022, the Ministry of Energy and Mineral Development announced plans to create the Uganda National Electricity Company Limited (UNECL) to take over the generation, transmission and distribution of electricity after the government decided against renewing the concessionary contracts of Eskom and Umeme.
The licensees that UEDCL has applied for are to do with the distribution of electricity and supply of electricity. If granted, the licenses will take effect after the expiry of Umeme’s 20-year concession.
Umeme’s concession expires at the end of March 2025. The company covers nearly 95% of Uganda’s electricity distribution network. The company, which is listed on the Uganda Securities Exchange, says it has invested more than $500 million in Uganda’s distribution network.
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