Uganda creates power utility to reduce tariffs


(Picture: Unsplash)

Uganda is abandoning Eskom.

It has announced that it will not renew the South African company’s license to run two hydropower stations as it shifts to bring a majority of its electricity sector under government control in order to cut the price of power to consumers. The license ends next year in March.

Uganda’s Energy and Mineral Development Department says it will establish a state-owned entity called Uganda National Electricity Company Limited (UNECL) to manage the generation, transmission, and distribution.

The shift to lessen the privatisation of energy is in contrasts to the recent moves in South Africa. Pretoria and Eskom are relying on independent power producers (IPPs) to bail it out of the energy crisis. Some like the trade union federation Saftu believe these moves and the unbundling of Eskom are a ploy to privatise the power utility.


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