The government of Uganda, through the Electricity Regulatory Authority (ERA), has initiated a reconciliation process with Umeme Limited to determine the buyout amount as the concession agreement comes to an end.
The process, expected to be completed within 30 days, aims to clarify which costs will be included or excluded from the buyout, estimated between $1.3 billion and $1.5 billion.
Harold Obiga, Director of Legal Services for ERA, emphasized the importance of the reconciliation process, calling it a critical step in finalizing the buyout amount.
Allan Rwakakooko, Head of Legal Services at Umeme, reassured Ugandans that power supply and distribution will improve gradually and there will be no deterioration during the transition.
The buyout and the end of the concession agreement come after years of debate over Umeme’s role in Uganda’s power distribution sector, which has seen significant investment but also criticism over high electricity tariffs and service quality.
The reconciliation process is part of the government’s broader efforts to manage the energy sector more directly, as it seeks to take greater control of power distribution in the country.
By Ben Musanje
3rd April 2025
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