The government is moving to merge Uganda’s three main electricity companies into a single entity as part of efforts to reduce administrative costs, eliminate duplication of responsibilities and improve efficiency in the electricity sector.
The companies targeted for the merger are Uganda Electricity Generation Company Limited (UEGCL), Uganda Electricity Transmission Company Limited (UETCL) and Uganda Electricity Distribution Company Limited (UEDCL), which are responsible for generating, transmitting and distributing electricity, respectively.
Under the proposed arrangement, the three companies will operate as one organisation instead of maintaining separate management structures and administrative systems.
Cabinet has directed Energy Minister Monica Musenero to speed up the merger process.
Currently, UEGCL is responsible for generating electricity from government-owned power plants, while UETCL transports bulk electricity through high-voltage transmission lines to distribution networks. UEDCL is responsible for distributing electricity to consumers through local power lines.
Although the three companies perform different functions, the government believes bringing them under one organisation could reduce overlapping administrative costs, improve coordination and streamline decision-making.
The merger is also expected to make the management of the electricity supply chain more coordinated, from power generation to transmission and distribution.
The move forms part of the government’s wider Rationalisation of Government Agencies and Public Expenditure (RAPEX) programme, which seeks to eliminate duplication of government functions, cut operational costs and improve service delivery.
However, the three companies currently perform distinct technical functions, meaning the merger will require an organisational restructuring to ensure that electricity generation, transmission and distribution continue without disruption.
