ERA Boss Sounds Alarm on Govt’s Umeme Takeover Readiness
Kampala, Uganda – The Chief Executive Officer of the Electricity Regulatory Authority (ERA), Ziria Tibalwa, has expressed concerns about the government’s preparedness to take over electricity distribution from Umeme in April 2025.
Tibalwa cited delays in securing the required $50 million investment for the Uganda Electricity Distribution Company Limited (UEDCL) as a major obstacle.
Speaking before Parliament’s Committee on National Economy, Tibalwa attributed the current power blackouts to the Umeme concession agreement, which prevents government intervention until the concession ends.
She emphasized the need for flexibility and escape routes in future contracts, allowing UEDCL to work alongside Umeme before taking over.
“The government isn’t ready with the $50 million for UEDCL to start. The concession agreement also bars UEDCL from stepping in. We need flexibility in new contracts. Umeme invests at the last minute because they operate a live network. Recent outages, vandalism, and cable failures show we can’t afford to wait,” said Eng. Tibalwa.
Meanwhile, Energy Minister Ruth Nankabirwa revealed that some Umeme employees may lose their jobs due to duplication of roles with UEDCL staff. Nankabirwa stated that the objective is to remove duplication, enhance efficiency, and ensure savings.
“Umeme workers’ applications were rejected to avoid duplication and enhance efficiency. If a UEDCL staff member already holds a position, the Umeme staff member will likely lose out. It’s inevitable,” said Nankabirwa.
The takeover is part of the government’s plan to end Umeme’s concession, which began in 2005. UEDCL will take over electricity distribution operations on April 1, 2025.
The government has set up a post-Umeme organizational structure with 2,712 employment openings for UEDCL and Umeme employees.
As the takeover approaches, concerns about the government’s readiness and the impact on employees remain, and the situation will likely be closely monitored in the coming weeks.
