Business & Technology NewsNational NewsTop Story

Energy Minister Ruth Nankabirwa Issues Stern Warning to UEDCL MD Amid Delays in Transition from Umeme Operations

Energy Minister Ruth Nankabirwa has issued a stern warning to Paul Mwesigwa, the Managing Director of Uganda Electricity Distribution Company Limited (UEDCL), urging a smooth transition as Umeme’s operations come to an end. Nankabirwa emphasized that Mwesigwa has just two years to ensure a stable power supply and improved service delivery, highlighting that his performance would determine whether his contract would be renewed.

The transition is critical as Umeme’s 20-year concession is set to expire on March 31, 2025, with UEDCL taking over electricity distribution from April 1, 2025. Nankabirwa cautioned UEDCL staff to perform better, stating, “I’m not obligated to renew their contracts.” She further stressed that all UEDCL employees are on contract and could be dismissed at any time, as outlined in the company’s Human Resource manual.

However, the government’s readiness to take over the electricity distribution from Umeme has been called into question due to delays in securing the necessary initial investment for UEDCL. The Electricity Regulatory Authority (ERA) raised concerns about the failure to secure the USD 50 million needed for UEDCL’s initial investment. ERA CEO Eng. Ziria Tibalwa Waako expressed doubts about the government’s preparedness, stating that without the funds, the transition might not be as seamless as planned.

“On our side, we aren’t even ready with the USD 50 million for UEDCL to start, let alone the concession agreement wouldn’t allow UEDCL to step in,” Eng. Waako remarked during a session before Parliament’s Committee on National Economy. She added that the government needs to rethink its approach in future contracts, suggesting that UEDCL should have been working alongside Umeme earlier to secure the necessary investments for a smooth transition.

The transition is set to mark a major step in the government’s plan to manage the electricity distribution network more effectively, but this delay in securing the investment raises serious concerns. With the looming deadline and the nation’s eyes on the process, the pressure on UEDCL to ensure a reliable power supply increases.

Meanwhile, Bukimbiri County MP Eddie Kwizera has raised concerns about job security for UEDCL employees. While Minister Nankabirwa has insisted that contracts can be terminated under UEDCL’s Human Resource manual, Kwizera emphasized that there must be job security for all workers. “There must be job security for all employees under UEDCL,” he stated.

As the government aims to expand electricity access to 80% of the population within three years and achieve universal coverage by 2030, the successful and timely transition remains crucial. The Minister’s warning to UEDCL and the ongoing financial uncertainties highlight the challenges ahead for Uganda’s power sector.


Related posts

George Weah Opens Up About Racism in Europe, Says He’s Not Proud of Ballon d’Or Award

Uganda’s Aswa Ranch: A Hub For Cattle Keeping And Livestock Production.

Cathy Mirembe

Speaker Anita Among Launches Free Medical Camp, Reaffirms Government’s Commitment to Public Health

Barbra Zeka

Power Struggle Within NRM Over Museveni’s 2026 Campaign Budget

Dean Lubowa Saava

US cuts to HIV/AIDS will cost millions of lives – UNAIDS chief warns

ndiwalanakiwa@gmail.com

FREEDOM OR NOTHING: Besigye’s Hunger Strike Puts Pressure on Government

Dean Lubowa Saava

South Sudan’s Vice President Machar put under house arrest, US calls for his immediate release

ndiwalanakiwa@gmail.com

HIGH COMMAND: Army Council Orders Bobi Wine’s NUP to Be Ban Before 2026 Polls Over Alleged Militancy.

Dean Lubowa Saava

NUP Slams Police for Blocking Youth Campaign Launch

Barbra Zeka

UN Donates Armoured Vehicles to Strengthen UPDF Operations in Somalia

Barbra Zeka

Leave a Comment