Uganda Electricity Distribution Company Limited (UEDCL) has recorded a loss of Shs193 billion, less than a year after taking over the country’s electricity distribution network from Umeme.
The financial results were discussed during the company’s Annual General Meeting chaired by Energy Minister Ruth Nankabirwa. The meeting came days after the minister removed board chairperson Lydia Ochieng Obbo and sent Managing Director Paul Mwesigwa on forced leave over concerns about the company’s performance.
According to Nankabirwa, the changes in leadership followed complaints of poor management, irregular awarding of contracts to companies that did not meet requirements, weak supervision of contractors and delays in repairing and upgrading inherited electricity infrastructure such as transformers.
The minister also raised concerns over slow responses to power outages and operational challenges linked to the Buy Uganda Build Uganda (BUBU) policy. She said reliance on some local suppliers affected the speed of field operations and service delivery.
Despite the losses, UEDCL has recorded significant growth since taking over power distribution operations. The company’s customer base has increased from about 178,000 to more than 2.7 million electricity connections. Revenue also grew to about Shs669.4 billion, mainly driven by higher electricity sales across the country.
Nankabirwa said government remains committed to strengthening UEDCL into a reliable and customer-focused national power distributor. She, however, emphasized the need for improved governance, faster implementation of projects, more transparent procurement processes and better customer care services to improve electricity supply nationwide.
UEDCL officially took over electricity distribution from Umeme last year following the expiry of the private company’s 20-year concession agreement with government.
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