The Ministry of Energy and Mineral Development says it is going to facilitate the smooth transition in the energy sector from Eskom and UMEME, whose concessions expire in March 2023 and March 2025 respectively.
According to the Minister for Energy and Mineral Development, Hon. Ruth Nankabirwa, the reforms will include the establishment of the Uganda National Electricity Company Limited (UNECL) as a state run entity with a majority stake.
“The Company has formally received written communication from the Government of the Republic of Uganda, notifying it that the current Concession will continue to run until its natural end in march, 2025 as stipulated in the concession Agreements after which, there will be no renewal,” UMEME said in a statement.
“The Company remains committed to performing its obligations as per the existing Concession Agreements and will continue to operate and maintain the electricity distribution system in line with prudent utility practice to ensure continued service delivery through to end of the concession,” the statement added.