Lira, Uganda – A major shift is underway in Uganda’s electricity sector, with the Electricity Regulatory Authority (ERA) announcing that UMEME, the country’s largest electricity distributor, will officially cease operations by April 1, 2025.
This move, revealed during a public consultation on December 12, 2024, at Margarita Hotel in Lira, is part of a broader effort to streamline Uganda’s electricity distribution under a single company, the Uganda Electricity Distribution Company Limited (UEDCL).
Ziria Tibalwa Waako, the CEO of ERA, explained that consolidating electricity distribution under one entity will improve efficiency, enhance service delivery and make the system more sustainable.
“This transition will help us deliver better quality electricity to Ugandans, making the system more streamlined and efficient,” Tibalwa Waako stated.
She also called for transparency during this transition, urging the public to report any corrupt practices within UMEME, as some employees may transfer to the new company.
Tibalwa Waako emphasized that with the shift to UEDCL, ERA is focusing on improving electricity access, affordability, and reliability.
The consultation also highlighted efforts to tackle electricity theft and vandalism, which have been major challenges for the sector.
“We must all stand together to fight this crime and we are grateful for the work done by Uganda Police and other security agencies,” she said.
The public consultation which occured at Magarita Palace Hotel Lira served as a platform for discussing new initiatives to integrate technology, including AI systems, to optimize grid management and reduce energy losses.
Tibalwa Waako shared that ERA aims to harmonize tariffs in the future, ultimately leading to lower and more affordable electricity prices for consumers.
“Our goal is to ensure that electricity becomes more affordable for all Ugandans in the shortest time possible,” she stated.
Ambassador Joan Rwabyomere, Chairperson of ERA, expressed her appreciation for the stakeholders, government officials and public representatives who attended the consultation.
She thanked all participants for their engagement, highlighting the importance of public involvement in shaping the future of Uganda’s electricity sector.
Selestino Babungi, CEO of UMEME, presented the company’s achievements and challenges during its 20 years of operation in Uganda.
Babungi revealed that 84% of the money collected from consumers goes to the government, with only 2.5% allocated to shareholders.
Despite significant challenges such as theft and interruptions to the power supply, Babungi noted that energy losses had decreased to 15.96%, while sales had increased by 11%, contributing to a larger tax base.
He also praised the shift to digital systems like Yaka prepaid meters, which have improved customer service and changed the public’s perception of UMEME.
The public hearing, which brought together hundreds of representatives from various sectors, sparked optimism for a more affordable and sustainable electricity future in Uganda.
ERA remains focused on improving the sector’s infrastructure, with ongoing investments in both the grid and power generation.
With the closure of UMEME’s services in April, 2025 and the transition to UEDCL, stakeholders are hopeful that these changes will pave the way for a more reliable and cost-effective electricity supply for all Ugandans.
