UEDCL Owes Local Electricity Suppliers Shs7.5Bn, Parliament Finds

What the report says

A parliamentary inquiry has found that Uganda Electricity Distribution Company Limited (UEDCL) owes two local transformer makers about Shs7.52 billion in unpaid invoices. According to the committee’s report on persistent power interruptions, Steema Transformers and Electricals (U) Limited is owed about Shs4.453 billion across 87 invoices, while Orion Transformers and Electrics Limited is awaiting about Shs3.068 billion across 28 invoices.

The report said about Shs3.14 billion of the combined debt, covering 81 invoices, had remained unpaid for more than 90 days. Parliament cautioned that the evidence came from only two of nine local suppliers, so it should not be treated as UEDCL’s full debt to domestic equipment manufacturers. Still, lawmakers said the overdue bills suggest more than a short-term cash squeeze and could weaken the local supply chain needed to repair faults and maintain the power network.

The committee said delayed payments may limit manufacturers’ ability to buy raw materials, keep production going and hold stock for urgent repairs. It also noted that these firms supply key items such as transformers, meters, conductors and protection equipment, which are needed for network maintenance and expansion. The report linked the issue to broader concerns about procurement and supply management at UEDCL after it took over electricity distribution from Umeme in April 2025.

Parliament recommended that UEDCL, working with procurement regulators, reconcile contracts, deliveries, invoices and payments, then set a time-bound plan to clear verified arrears, starting with older and undisputed bills. The committee also urged the utility to publish quarterly demand forecasts so local manufacturers can plan production more effectively.