By Ben Musanje
The proposed merger of Uganda’s three state-owned electricity companies has sparked questions about the future of the country’s power sector, barely two years after the government took over nationwide electricity distribution from private operator Umeme.
But Uganda Electricity Distribution Company Limited (UEDCL) Acting Managing Director, Eng. Joselynne Rwabwogo Rwakakooko, says whatever direction the government eventually takes, electricity consumers must continue receiving services without disruption.
Responding to journalists during a media engagement at UEDCL offices in Nakasero on Thursday, Rwakakooko declined to comment directly on the proposed consolidation under the government’s Rationalisation of Agencies and Public Expenditure (RAPEX) programme, saying discussions were still ongoing.
“Allow us not to comment on RAPEX. I think it’s still a discussion that’s happening. We await the way forward, just like you,” she said.
However, she was quick to emphasise that the possible merger of the electricity companies should not change their fundamental responsibility of serving consumers connected to the distribution network.
“Whether merged, unmerged, they will always be a customer that has to be served on the distribution network,” Rwakakooko said.
Her remarks come at a critical moment for UEDCL, which is still dealing with persistent electricity outages, ageing infrastructure, transformer shortages and mounting pressure to improve customer service following its takeover of distribution operations from Umeme on March 31, 2025.
Earlier this week, Cabinet directed the Ministry of Energy and Mineral Development to expedite the consolidation of three state-owned electricity companies: UEDCL, Uganda Electricity Generation Company Limited (UEGCL) and Uganda Electricity Transmission Company Limited (UETCL).
The directive, announced by government on Tuesday, is part of the RAPEX programme, which seeks to reduce administrative expenditure, eliminate duplication of functions and improve public service delivery.
Under the proposed arrangement, electricity generation, transmission and distribution would be brought under one corporate structure, potentially restoring a vertically integrated electricity utility similar to the former Uganda Electricity Board (UEB).
Government has tasked Energy and Mineral Development Minister Dr Monica Musenero with expediting the process.
However, details concerning the implementation timetable, management structure, staffing arrangements and expected financial savings have not yet been made public.
The proposed restructuring marks a significant departure from the electricity sector reforms introduced approximately 25 years ago.
Uganda’s electricity sector was restructured following the Electricity Act of 1999, which paved the way for the breakup of the former Uganda Electricity Board in 2001.
The reforms separated the electricity industry into different entities responsible for generation, transmission and distribution.
UEGCL was established to oversee generation assets, UETCL to manage transmission and bulk electricity purchases, while UEDCL was assigned responsibility for electricity distribution infrastructure.
The restructuring was intended to improve efficiency, attract private investment, strengthen accountability and address weaknesses associated with the former state monopoly.
The latest Cabinet directive could reverse much of that institutional separation by bringing the three functions under one corporate umbrella.
It also comes barely two years after UEDCL assumed nationwide electricity distribution responsibilities following the expiry of Umeme’s 20-year concession.
‘We have Ugandans technically capable of running the network’
Despite uncertainty surrounding the proposed merger, Rwakakooko expressed confidence in UEDCL’s technical workforce, emphasising that the company has Ugandan professionals capable of managing the country’s electricity distribution network.
“The beauty is that today, we have a team who are Ugandan, who are technically astute or technically good at running the distribution network,” she said.
She added that UEDCL’s immediate responsibility was to strengthen its operational performance, improve efficiency and ensure customers continued receiving reliable electricity services regardless of the government’s eventual decision.
“I think what we need to do is to ensure that we continue, we improve our performance, become effective at being able to deliver the service,” she said.
Rwakakooko maintained that the company would continue concentrating on service delivery as discussions about the proposed restructuring progress.
“The rest, I think, will be different. There will be feedback at the right time. But on our side, we are strengthening our performance and continuing to work to serve the customer,” she added.
The bigger question: What happens to electricity consumers?
While government has presented the proposed merger as a cost-cutting and efficiency measure, its implementation will raise important questions about how the new structure will affect electricity consumers, employees, existing contracts and ongoing infrastructure investments.
For households and businesses already frustrated by frequent power interruptions, the most immediate concern is whether the restructuring will improve electricity reliability or create further uncertainty in a sector still recovering from years of investment and operational challenges.
UEDCL has recently unveiled a $994 million investment programme aimed at expanding distribution capacity, rehabilitating ageing infrastructure and addressing persistent electricity supply challenges.
The company has also embarked on regional procurement of transformers to supplement local manufacturers struggling to meet demand.
As government moves towards consolidating the electricity companies, the challenge will be ensuring that institutional changes do not derail these ongoing interventions.
For Rwakakooko, the message appears clear: whatever happens to the companies under RAPEX, the customer must remain at the centre of electricity distribution.
Whether the merger delivers the promised efficiencies, however, will ultimately depend on how the new structure is implemented and whether it translates into more reliable power, improved accountability and better services for Ugandans. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
