UMEME-UEDCL Handover: The Auditor General to work with Umeme to Harmonize Pending Issues.

Uganda Electricity Distribution Limited (UEDCL), which recently took over power distribution from Umeme, has renamed the YAKA prepaid electricity system to "Light."

The transition, according to the government, will be smooth, and no interruptions are expected for customers purchasing electricity.

Dr. Ruth Nankabirwa Ssentamu, the Minister of Energy and Mineral Development, confirmed that the YAKA prepaid system will continue to operate without disruption.

The Minister said that customers can still purchase electricity units and services through existing platforms such as MTN, Airtel, and other collection channels.

"Look out for UEDCL Light on telecom menus, as YAKA has now been replaced with 'Light'," she said at the handover ceremony today.

The Ministry assured that customers can still use MTN, Airtel, and FINTECH platforms to buy units. However, the Umeme Touch Pay platform will be decommissioned, with all transactions now directed through the new "Light" system.

Energy Minister Nankabirwa

Dr. Patrick Bitature, Chairman of the Board of Directors at Umeme Limited, confirmed that the Government of Uganda has finalized the buy-out amount for Umeme following an extensive audit by the Office of the Auditor General.

“After a detailed audit, the Office of the Auditor General has finalized the buy-out amount for Umeme, ensuring financial decisions are based on verified figures. The Government of Uganda has already paid the agreed amount of USD 118.4 million."

He said that the payment signifies the official closure of Umeme’s 20 years of operations in Uganda, allowing UEDCL to take full charge of the distribution network while expressing pride in their accomplishments and acknowledging the ongoing negotiations to finalize the transition.

He added, “80% of our staff have been absorbed. We are handing over to you a well-looked after, manicured mindset changed staff. I hope they deliver and I know they will. I'm glad we have delivered a 20-year concession; we are proud of our accomplishment. We still have a bit of work to do; some people feel that the negotiations have got to continue, and they will. When I joined the board, we were number one in corruption, above the police and other institutions. We then adopted a zero policy on corruption and I made it my personal business to get involved.”

UEDCL owns 26 of the 51 area offices, and agreements are in place to rent the others from landlords. Services will remain uninterrupted, offering customers continued access to support and information.

The Uganda Electricity Distribution Company Limited (UEDCL) has not allayed any fears that it will not manage the huge task ahead as it takes over power distribution from Umeme.

“Every noble acquisition is attended with its risks; he who fears to encounter the one must not expect to obtain the other. UEDCL is committed to improving reliability in the country by deploying all the investment resources with technology to spur social economic transformation. We commit to fulfilling our ERA parameters as embedded in the license issued by the Authority on 31 December 2024,” UEDCL Managing Director Paul Mwesigwa said on Monday as the company officially took over from Umeme.

Mwesigwa said over the past two decades, UEDCL, has taken over 5 concessions, including Ferdisult Engineering Limited (2017), Bundibugyo Energy Cooperative Society (BECS, 2021), Pader Abim Community Multi-Purpose Energy Society (PACMECS, 2023), Kyegegwa Rural Energy Cooperative Society Limited (KRECS, 2024) and Kilembe Investments Limited (2024).

He said with Umeme becoming the sixth concession, it shows they have the capacity to handle power distribution, even better than their predecessor.

“All the above takeovers undertaken are informed by a deliberate philosophy that aligns with clear regulatory environment. UEDCL Management, under the guidance of the Board follows the following principles in concession takeovers: regulatory notice, due diligence on the network to ascertain integrity, submission of the tariff, restricted recruitment that is fair and competitive, and investment thereafter for business performance actions.”

“Resultantly, business in all service territories taken over have grown and services improved, making them sustainable. For example, when we took over Ferdisult in 2017, the electricity energy loss target was 28% and today, we stand at 18.1%.”

He said UEDCL has already commenced with all the critical procurements (network and non-networks) requirements needed to ensure business continuity after Umeme.

“We immediately on January 6 2025 embarked on recruitments and as we speak today, Hon Minister, at least 99.6% of the employees in respect of the above structure have been appointed, the 0.4% of about 11 employees will be done by close of business today. We did a water tight recruitment exercise.”

 Adding that:

“ On ICTs, all systems (in Umeme and UEDCL) shall be maintained. These are on our ledger and we shall continue deploying them until the time when we will merge them without interrupting service delivery. Buying electricity units and other services will remain uninterrupted through channels (MTN & Airtel), banks and other collection platforms. In addition to the above, all electricity units purchased by customers before Umeme’s exit shall remain valid even after Umeme’s exit.”