UEDCL has its work cut out as they prepare to take over supply of juice to households
The Uganda Electricity Distribution Company Limited (UEDCL) will need to hire at least 3,000 staff if it is to effectively supply households in the post-Umeme era, the company's Paul Mwesigwa has said.
Umeme has 2,502 employees but as it winds down its operations in the country, a noticeable drop in quality of service delivery has left consumers frustrated.
But Mr Mwesigwa said following a discussion with Umeme, UEDCL is planning to have 3,010 employees to meet overcome the challenge.
"So, we are going to engage them 100 percent to see whoever will be willing to join us, will be interviewed and given an appointment for UEDCL," Mwesigwa said.
But the challenge is not just due to manpower as Umeme is reluctant to reinvest its profits in an operation it has already washed its hands of.
It leaves Mwesigwa and his UEDCL with their work cut out as they prepare to take over supply of juice to households.
Umeme is already packing up its pliers and rubber gloves ahead of the exit March 31, 2025, but legislators on the Committee of Commissions, Statutory Authorities & State Enterprises (Cosase) feel the incoming operators of electricity supply in the country have a lot of explaining to do before then.
Umeme was formed in 2004 when the government leased the UEDCL to a consortium belonging to Globeleq (56 percent), a subsidiary of the Commonwealth Development Corporation of the UK, and Eskom of South Africa (44 percent).
In February 2024, Parliament was informed of plans by government to borrow $765.75 million (Shs2.8 trillion) from external lenders to cater for the costs of Umeme's exit.
On Friday, officials from UEDCL appeared before Cosase to answer queries raised in the December 2023 Auditor General's report.
The AG found several areas of concerning in management of UEDCL that would suggest that the current woes Umeme is facing might not end with the transfer of its operations to UEDCL.
UEDCL has been operating on ever increasing debts that shot up by 170 percent from Shs17.97bn in 2021/22 to Shs48.49bn in 2022/23.
The AG revealed that the increase was mainly due to unpaid owner's engineer supervision cost for Karuma and Isimba hydro power plants amounting to Shs18.5bn.
Ahead of the impending takeover of distribution of electricity from Umeme, officials noted that UEDCL is set to inherit a company that is labouring with a drop in quality of services.
Robert Kasolo (Iki Iki County) said they had heard of delays stretching to two years to have transformers in some areas replaced, despite the utility services requirements demand transformers to be replaced within five days.
"In my place, there is a place where a transformer has taken Umeme two years to replace, what does that mean? And not just Umeme, but I believe in your monthly discussions, replacement has become a problem," he said.
But it was a fellow legislator who answered for Kasolo. Gerald Nangoli (Elgon North), said the issue of transformers cuts across the entire country.
However, he faulted Umeme for using "a very difficult condition", saying the company has been demanding that before a transformer is replaced, there must be more than 35,000 registered people on meters and paying for electricity in the area the transformer is to serve.
"In Kampala here, it is easy to get these people, but you go to my village, you can move the entire sub-county and you get 15-17 but they are legally connected," Nangoli said.
"But when you give a condition that you want 35,000 people and above, it isn't everyone's wish to have power, those who can afford, have it and are paying for it."
Mukono North MP Abdallah Kiwanuka as Umeme's exit draw closer, it is reluctant to invest back.
"The agreement they had with government required them to invest back, now they are reluctant to invest back in terms of the transformer where they are needed," he said.
"And how are you planning to deal with the biggest problem of electricity infrastructure vandalism, which has most of the areas in total blackout?"
Mr Mwesigwa also acknowledged the drop in quality of services ahead of Umeme exit, attributing to the limited access to capital for Umeme to invest, and the need for Umeme to minimise on their costs.
However, he assured MPs that these concerns too have been raised in the monthly meetings being held to discuss the transition.
"Umeme has been managing and contracting several companies and employing several staff. We need to get a picture of how you are handling that or we are going to fall into another dilemma.," Kiwanuka said.
Mwesigwa informed Parliament that although Umeme is the largest distributor set to be taken over by
UEDCL, there are several distributors that have been taken over between 2017 and 2024 and during the transition process, the staff found working in these smaller distribution to work for Government.
"This year, we have taken over a distributor in Kyegegwa and part of Kayunga, we have engaged all the staff, interviewed them and whoever qualifies has joined," he said.
UEDCL has big queries to answer as the AG said it had noted that the escrow (neutral party asset holder) account had closing balances of $8,121.52 (Shs29.8 billion) and Shs21,247 as of June 30, 2023.
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The year end funds are less than 1 percent of the anticipated $20 million (Shs73 billion) expected at the end of the concession period of March 31, 2025.
The government plans to sink Shs2.8 trillion into post-Umeme costs.
Meanwhile, the Auditor General raised concern over the delayed completion of Karuma and Isimba dams.
Although the physical and financial progress of the construction of Karuma was at 99.9 percent, and Isimba 98.39 percent, respectively, the AG says project had exceeded the initial completion date by 54 months as at the end of 2022/23.
Officials from Uganda Electricity Generation Company Ltd are expected to explain this.
The Electricity Regulatory Authority will answer for failure to exhaust its wage to a tune of Shs4.04 billion, despite the Authority having several positions vacant.
The Auditors noted that out of the budgeted wage funds of Shs81.8bn for the four financial years between 2019/20 to 2022/23, Shs77.7bn (95 percent) was realised.
The unutilized funds of Shs4 billion were due to unfilled positions resulting from delayed recruitment processes. Out of the 98 approved positions on ERA's structure, 79 (80 percent) were filled leaving 19 positions vacant.
