By Leonard Kamugisha Akida,
KAMPALA
The government has officially handed over the electricity distribution license to Uganda Electricity Distribution Company Ltd (UEDCL) to replace Umeme Ltd whose 20-year concession ends in March 2025.
This was at the Uganda Media Centre Kampala on Tuesday 31st December,2015.
Ruth Nankabirwa, the Minister for Energy and Mineral Development disclosed that four licenses have been repossessed by the government, noting that the transition will not disrupt service delivery in the country.
“I wish to assure all Ugandans that we remain fully committed to the continuity of electricity services during this critical period,” she said.
Nankabirwa disclosed that the transition will prioritize affordability, access quality and reliability. She observed that during UEDCL’s operations, Umeme’s existing tariff packages such as the lifeline tariff, declining block tariffs, and time-of-use arrangements, will remain operational.
“The ministry targets 80 percent access within three years and 100 percent by 2030, which is in line with Vision 2040 and the National Development Plan III Electrification Strategy,” she added
The minister expressed concerns over increased cases of vandalism to electricity infrastructures which she says undermines efforts to provide reliable power. Additionally, the governmen through the use of non-grid and off-grid solutions is committed to implementing the Electricity Access Scale-Up Project (EASP) as well as expand and rehabilitate the infrastructure to mitigate service interruptions.
Both UEDCL and Umeme Ltd existing employees, have been included in the transition although the minister said they may have to apply for the available positions.
“The Government has set the post-Umeme Limited structure with a total of 2712 employment openings exclusively for UEDCL and Umeme employees, in line with the Lease and Assignment Agreement for a seamless asset retransfer. These jobs have been availed for you who are already working at UEDCL and Umeme Limited to ensure the continuity of the electricity service without distortions.”
The UEDCL Board will be responsible for the recruitment of staff. She encouraged all eligible employees of the two companies to express interest and apply for the positions matching their qualifications and experience once advertised.
Nankabirwa also noted that there are of late challenges of increased power cuts, which she said could be related to the transition period.
“Challenges are inevitable. They are consequential to the transition. You know like when you are to move, you might forget some things and focus on others,” she said but added that these are some issues UEDCL will begin with.
It has also been noted that the Office of the Auditor General is currently working to determine the buyout by the Lease and Assignment Agreement and payment of Umeme’s outstanding investment.
Ministry of Finance, Planning and Economic Development has committed to providing the buyout amount on time for a seamless transition, and also to facilitate UEDCL operations.
Uganda has a generation capacity of 2,052.6 megawatts, up from about 300 when Umeme got the concession.
Speaking to journalists shortly after the handover, Ziria Tibalwa Waako, Chief Executive Officer ERA commended Umeme for collaborating with the regulator and the ministry to ensure declining tariffs and timely payments.
She retaliated challenges such as theft and vandalisation of electricity infrastructure, and urged the public to report any suspicious activities in their areas to respective authorities.
At least 98 percent of the UMEME staff have retained their jobs under the current concessions that have already been repossessed and more employees are expected be retained as the UEDCL Board Chairman Francis Tumuhairwe said, “Umeme staff are going to be part of us. No one should be worried.” assured UEDCL Board Chairman Francis Tumuhairwe
She said the 20 years experience which thus staff has is enough to manage the operations of UEDCL.
