Museveni nationalises electricity industry
Boots out SA's Eskom
Museveni's government argues that electricity generation and distribution in private hands had become expensive.
In a different power crisis from the one in Zimbabwe and South Africa, in Uganda president Yoweri Museveni is moving ahead with plans to nationalise electricity generation and distribution and part of it would be booting South Africa's Eskom from the market.
Through this process, Museveni would bundle Uganda Electricity Generation Company (UEGCL), Uganda Electricity Transmission Company (UETCL), and Uganda Electricity Distribution Company (UEDCL), which are the three private electricity companies in Uganda.
Eskom Uganda, the largest generator of energy's 20-year concession under a government regulatory framework signed in 2002 ends in March next year and won't be renewed.
Eskom Uganda is a wholly owned subsidiary of Eskom, the South African energy conglomerate. It is in charge of a combined 380MW of which 180MW is at Nalubale power plant and 200MW at the Kira Hydropower plant.
Umeme Limited, another electricity generator whose contract was signed in 2005, will stop operations in 2025.
Strategy
In a statement, Solomon Muyita, the energy ministry's principal communication officer, made the announcement and put UEGCL, UEDCL, UETCL on notice that under a government ownership strategy they should start making the transition to cover the space occupied by Eskom and Meme Limited.
In 1999, Uganda liberalised the electricity and power generation industry.
But now, Museveni's government argues that electricity generation and distribution in private hands had become expensive. A deep dive into the big business story of the week, as well as expert analysis of markets and trends.
"The reforms are expected to minimise expensive private capital in the Electricity Sub Sector investments in generation, transmission, and distribution," said Muyita.
According to World Bank data, as of 2016, 26.7% of Uganda's population had access to electricity.
About 18% of the rural population has access to electricity and about 57.5% of those in urban areas have electricity.
In the 1990s Uganda had one of the lowest electricity access in Sub-Saharan Africa with just 180MW. The unbundling of the Uganda Electricity Board (UEB) in 1999 was the start of marked change.-Fin24
Through this process, Museveni would bundle Uganda Electricity Generation Company (UEGCL), Uganda Electricity Transmission Company (UETCL), and Uganda Electricity Distribution Company (UEDCL), which are the three private electricity companies in Uganda.
Eskom Uganda, the largest generator of energy's 20-year concession under a government regulatory framework signed in 2002 ends in March next year and won't be renewed.
Eskom Uganda is a wholly owned subsidiary of Eskom, the South African energy conglomerate. It is in charge of a combined 380MW of which 180MW is at Nalubale power plant and 200MW at the Kira Hydropower plant.
Umeme Limited, another electricity generator whose contract was signed in 2005, will stop operations in 2025.
Strategy
In a statement, Solomon Muyita, the energy ministry's principal communication officer, made the announcement and put UEGCL, UEDCL, UETCL on notice that under a government ownership strategy they should start making the transition to cover the space occupied by Eskom and Meme Limited.
In 1999, Uganda liberalised the electricity and power generation industry.
But now, Museveni's government argues that electricity generation and distribution in private hands had become expensive. A deep dive into the big business story of the week, as well as expert analysis of markets and trends.
"The reforms are expected to minimise expensive private capital in the Electricity Sub Sector investments in generation, transmission, and distribution," said Muyita.
According to World Bank data, as of 2016, 26.7% of Uganda's population had access to electricity.
About 18% of the rural population has access to electricity and about 57.5% of those in urban areas have electricity.
In the 1990s Uganda had one of the lowest electricity access in Sub-Saharan Africa with just 180MW. The unbundling of the Uganda Electricity Board (UEB) in 1999 was the start of marked change.-Fin24
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