Umeme Exit Sparks Electricity Worries

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A segment of legislators, led by Nyendo-Mukungwe Division MP Mathias Mpuuga, has questioned the government’s readiness to handle the electricity sector following Umeme exit in March 2025.

Mpuuga raised concerns about the absence of bills addressing the rationalization of the energy sector, especially in light of the government’s plan to merge the existing electricity companies into the Uganda National Electricity Company (UNEC).

The government officially notified Umeme in December 2022 that its contract would not be renewed beyond March 2025. The proposed establishment of UNEC hints at a return to a monopoly structure reminiscent of the Uganda Electricity Board, which was divided in 1999 to create regulatory and distribution entities.

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Mpuuga reminded Parliament of similar concerns raised during the 2023 deliberation of the electricity bill. At that time, the House instructed the Energy Minister to present a comprehensive report detailing the government’s strategy for effectively managing the expiration of Umeme’s concession.

Responding to the concerns, Prime Minister Robinah Nabbanja assured Parliament that the Cabinet is actively addressing the issue.

In conclusion, she pledged to provide a detailed report in due course, stating, “I want to inform the Member (Mpuuga) that Cabinet is dealing with the issue, and we shall report appropriately.”

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