Electricity sector merger raises questions over efficiency and accountability

What the report says

Cabinet has renewed its push for the Ministry of Energy and Mineral Development to fast-track the rationalisation of government bodies with overlapping roles, with Uganda Electricity Generation Company Limited (UEGCL), Uganda Electricity Transmission Company Limited (UETCL) and Uganda Electricity Distribution Company Limited (UEDCL) at the centre of the plan. The Nile Post reports that the proposal has reopened debate over whether folding the three electricity firms into a more consolidated structure would improve service delivery or instead complicate management in a sector already facing reliability concerns.

According to the report, government says the restructuring is meant to reduce duplication, improve coordination and address operational inefficiencies across generation, transmission and distribution. The ministry’s communications head, Dr Patricia Litho, said officials are working on arrangements to implement Cabinet’s directive and argued that a single management structure could reduce delays caused by separate decision-making chains.

However, political analyst Godber Tumushabe questioned whether the merger has a clear operational rationale, warning that institutional reshuffling alone may not solve deeper problems in public sector management. He suggested the focus should instead be on broader political and administrative reforms. The article notes that government previously unbundled the former Uganda Electricity Board after the 1999 Electricity Act, creating the three companies now under review.

The discussion comes as UEDCL has taken over the national distribution network after Umeme’s concession ended in April 2025, leaving the sector under pressure from outages, ageing infrastructure and recovery work. UEDCL says it is awaiting further guidance while continuing to serve customers. The wider RAPEX programme, aimed at cutting duplication and costs, has also faced implementation concerns in the past, including staff, asset and transition issues.