UEDCL, one of the successors of the Uganda electricity board is the owner of the electricity distribution network up to 33KV. The network was handed over to Umeme limited on the 1st march 2005, under a concession arrangement. Umeme Ltd is wholly owned by CDC Globeleq of UK.
UEDCL was privatized by the Government of Uganda (GoU) through a 20 year concession by bringing on board Umeme Ltd a private investor in the electricity distribution and supply business in order to:
- Attract Foreign Direct Investment (FDI);
- Improve the quality of service;
- Rehabilitate, upgrade and expand the distribution network; and
- Increase the electricity access to other customers in the country.
The concession involved Umeme and other parties entering into a number of agreements, namely:
- The Lease and Assignment Agreement (LAA) with UEDCL;
- The Support Agreement with GoU;
- The Power Sales Agreement with Uganda Electricity Transmission Company Limited (UETCL); and
- Licenses for Electricity Distribution, Supply, and Embedded generation by the Electricity Regulatory Authority (ERA).
Subsequent to the concessioning of the electricity distribution business to Umeme, UEDCL,s role changed to:
- Administering the Lease and Assignment Agreement;
- Operating and maintaining the electricity off-grid stations in Moyo, Adjumani and Moroto until their divestiture;
- Supervising the completion of the Rural Electrification Schemes that were under construction before the transfer of business to Umeme
- Managing the pole treatment plant;
- In an event of an early termination of the agreement, UEDCL should be in position to take over and resume the operations of electricity distribution and supply business.
The other Business aspect of UEDCL, and which is the sole Business Unit of the company, is the Pole Plant. The Pole Plant at Lugogo in Kampala maintains its transformation drive from a support unit to a fully-fledged and commercially viable business unit trading in creosote treated wood poles. The rehabilitation of the plant is continuous with a view of attaining international standards and meeting all the environmental requirements.
All efforts are geared towards ensuring that the plant fully performs its duty in the Energy sector.
The Plant owes the sector a duty of ensuring sufficient supply of quality treated wood poles to support the distribution and transmission electricity networks within the country.