Good News: Gov’t Takes Over Electricity, Cuts Bill for Ugandans – See How Much to Pay Per Unit

Uganda's government has announced a significant shift in its energy sector with the takeover of electricity distribution and sales, a move expected to lower electricity costs. The Uganda Electricity Distribution Company Ltd (UEDCL) has received licenses from the Electricity Regulatory Authority (ERA) to take over these operations from Umeme Ltd, marking the end of Umeme’s 20-year concession.

At a press briefing, Energy Minister Ruth Nankabirwa confirmed that this transition would ensure more affordable electricity for Ugandans. The government’s goal is to further reduce tariffs, already experiencing a decline from late 2023 to 2024, with domestic tariffs falling from Shs805 to Shs796 per unit. Commercial and industrial consumers also benefited from reduced costs, and this trend is set to continue.

Nankabirwa emphasized that the government's aim is to ensure that electricity remains affordable for all, especially industrial users, with no significant return on investment like that of Umeme, whose rates were inflated by a 20% ROI. This move, she explained, would make electricity more accessible, while also addressing inefficiencies in the previous system.

The government is investing in UEDCL to enhance infrastructure, including the installation of substations, transformers, and network upgrades. UEDCL Managing Director Paul Mwesigwa revealed that the company plans to invest $70 million annually over the next 25 years to eliminate power cuts and strengthen the grid, with half of the funding already secured.

While the transition is expected to bring challenges, including potential power cuts, Nankabirwa assured the public that the government would manage these issues swiftly. With UEDCL taking over the reins, Uganda anticipates a more reliable and affordable electricity supply in the years to come.