Electricity distributor, Umeme’s 20 year contract with government of Uganda will not be renewed at the end of March 2025.
According to a statement from Umeme today, they are bound by the listing rules of the Uganda Stock Exchange to disclose the developments to the public.
“Pursuant to Rule 36 (1) (a) and (b) of the Uganda Securities Exchange (USE) Listing Rules, 2021 the Company is required to amongst others disclose to its shareholders and the general public new developments in its sphere of activity which are not public knowledge and which may lead to material movements in the ruling price of its listed securities,” Umeme said.
“The Company has formally received written communication from the Government of the Republic of Uganda, notifying it that the current Concession will continue to run until its natural end in March, 2025 as stipulated in the Concession Agreements after which, there will be no renewal,” they added.
The state minister for energy Okasai Opolot said last month that Umeme’s concession matters had been handled in a cabinet but they quashed this noting that they would comment after receiving a formal notification from government.
According to Opolot, government is set to form and establish a state owned electricity company that will take over and continue distributing power to the Umeme covered areas after the ceasing of the Umeme concession in March 2025. The discardment of the intermediary is expected to reduce power tariffs across the country.
Umeme has however confirmed that it remains committed to performing its obligations as per the existing Concession Agreements and will continue to operate and maintain the electricity distribution system in line with prudent utility practice to ensure continued service delivery through to the end of the Concession.
Umeme Limited is in a 20-year deal with the Government of Uganda and it is set to expire on 30th March 2025.
About The Author
