Parliament’s Natural Resources Committee has raised concerns over the Uganda Electricity Distribution Company Limited’s preparedness to take full control of the country’s electricity distribution network following the end of Umeme’s concession.
The committee questioned whether UEDCL had made adequate investments and put in place the necessary systems and leadership structures before assuming responsibility for the network.
The concerns were raised during a meeting with UEDCL management, led by Acting Managing Director Joselynne Rwakakooko, and Minister of State for Energy Sidronius Okaasai Opolot.
The committee, chaired by Kazo County MP Dan Kimosho, questioned why UEDCL was not adequately financed ahead of the transition, despite government having known for years that Umeme’s concession would come to an end.
Figures presented to MPs showed that Umeme invested about US$72 million in 2021, US$34 million in 2022, US$23 million in 2023 and nearly US$10 million in 2024.
The investments brought Umeme’s spending during the final five years of its concession to approximately US$132 million, equivalent to about Shs490 billion.
UEDCL, by comparison, has invested roughly US$1.5 million, or about Shs5 billion, since taking over the distribution network, including expenditure on new customer connections.
The sharp difference in investment levels prompted MPs to question whether UEDCL had been sufficiently prepared to inherit and operate a network that had received substantially greater capital investment under Umeme.
Kimosho questioned how UEDCL could be expected to achieve similar levels of efficiency without comparable investment in infrastructure.
UEDCL Chief Finance Officer Jacqueline Kiwanuka told the committee that government had initially planned to provide funding to prepare the company for the transition, but the anticipated resources were not released as expected.
She said the company later sought approval to borrow and secured financing after taking over the network.
MPs, however, sought clarification on funds that could have been used to strengthen UEDCL before the handover.
The committee questioned the Ministry of Energy and the electricity regulator about money collected through electricity tariffs and whether UEDCL had been restricted from using some of the funds for preparatory investments.
According to documents cited during the meeting, some funds were reportedly available shortly before the takeover but were instead placed in a fixed bank account to earn interest rather than being immediately invested in electricity distribution infrastructure.
The committee said it would investigate the matter further and indicated that former UEDCL Managing Director Paul Mwesigwa and officials from the regulator would be summoned to explain how the funds were handled.
Distribution Losses Rise
MPs also expressed concern over an increase in electricity distribution losses since UEDCL assumed control of the network.
UEDCL officials reported that losses had risen to about 18.5 percent, compared with approximately 15 percent at the time of the handover from Umeme.
Rwakakooko told MPs that each percentage point increase in annualised energy losses represents roughly US$7 million, equivalent to about Shs25 billion.
The figures raised questions about the financial impact of the increased losses at a time when UEDCL is seeking to strengthen the network and improve service delivery.
Acting Leadership Raises Concern
The committee also questioned the governance structure at UEDCL, particularly the large number of senior positions being occupied in an acting capacity.
MPs were informed that six of the company’s 13 top management positions, including that of Managing Director, are currently held by acting officials.
The chairperson of the UEDCL board is also serving in an acting capacity.
Masindi Municipality MP Rogers Byamukama warned that prolonged acting appointments could weaken accountability and make it harder to assess responsibility for the company’s performance.
The committee directed the Ministry of Energy to provide a clear timetable for filling the vacant positions with substantive appointments.
Minister Okaasai acknowledged the concern and said government expects to have a fully constituted UEDCL board by mid-September.
He said the new board would then be expected to address the acting appointments and facilitate the recruitment of substantive office holders.
MPs Probe Prepaid Vending System
The committee also examined UEDCL’s electricity vending system, which officials said became operational on December 4, 2024, after receiving STS certification.
The system was supplied by Spanish technology company Indra.
MPs expressed concern about repeated system failures, particularly towards the end of the month, saying such breakdowns could disrupt electricity purchases, inconvenience consumers and expose UEDCL to financial losses.
The committee ordered UEDCL to submit documents relating to the procurement and operation of the vending platform, including its technical specifications, certification, supplier details and procurement cost.
The committee said the information would help establish whether the system was properly procured and whether its recurring failures were being adequately addressed.
The scrutiny comes as UEDCL faces pressure to demonstrate that it can maintain and improve the electricity distribution network while reducing losses, strengthening infrastructure and restoring confidence among consumers following the transition from Umeme.
ENDS.
English 