KAMPALA – The Uganda Electricity Transmission Company Limited (UETCL) has demanded that UMEME pay an outstanding amount of UGX 513 billion for power purchases made before their exit. This call was made during UETCL’s annual general meeting, where the company reported a profit of UGX 82 billion.
The Energy Minister, Ruth Nankabirwa, who chaired the meeting, stated that her ministry is working on various avenues to ensure UMEME settles the outstanding debt. This development comes as UMEME prepares to hand over the distribution system to the Uganda Electricity Distribution Company Ltd. on March 31, 2025.
In a related development, UMEME has disputed the audited figure of USD 118,385,603 presented by the Office of the Auditor General (OAG). The company claims that this figure is inaccurate and has informed the government that it will issue a formal Notice of Dispute.
UMEME had submitted an estimated Buy Out Amount of USD 234 million, which was subject to an audit by the Government of Uganda. However, the OAG’s final audit report indicated a significantly lower amount, which UMEME disputes.
Despite the dispute, UMEME has received the government’s admitted sum of USD 118,385,603. The company has also been compelled to hand over the Distribution System to the Uganda Electricity Distribution Company Ltd. on March 31, 2025.
“The Board of UMEME remains committed to ensuring an accurate and appropriate return for its shareholders. The company is optimistic that the matters in dispute will be resolved during the ensuing 30-day good faith negotiations period or subsequently by an arbitral tribunal in London,” said UMEME in a statement.
The developments surrounding UMEME’s exit and the disputed audit report have raised concerns about the future of Uganda’s electricity sector.
