Electricity sector shake-up: Delays in merger disrupt ministry operations

This was disclosed by senior ministry officials at a session with the Committee on Environment and Natural Resources, focusing on the government's plan to amalgamate the Uganda Electricity Generation Company, Uganda Electricity Distribution Company, and Uganda Electricity Transmission Company into the Uganda National Electricity Company (UNEL).

The briefing was conducted by Sidronius Okaasai, the Minister of State for Energy and Mineral Development (Energy), and Irene Bateebe, the permanent secretary.

During the discussion on March 12 at the Parliament House, Okaasai highlighted the adverse effects of the merger delay on service delivery, noting the departure of some staff and the ministry's desire to preserve its technical expertise.

He mentioned that the ministry has been offering temporary contracts to employees from these companies in anticipation of the merger, acknowledging that the current employment terms are insufficient for retaining staff.

Okaasai further elaborated that the envisioned national electricity entity would incorporate the responsibilities of the merging companies plus umeme, the nation's leading electricity distributor. He indicated that UNEL would need a workforce of at least 3,000 to function efficiently, with regional offices planned to facilitate coordination.

Permanent Secretary Irene Bateebe reassured members of parliament (MPs) that the ministry plans to retain most employees from the merging entities.

However, MPs criticized the ministry's preparedness for the merger, urging Bateebe to provide details on cost savings and efficiency gains.

Bukimbiri County MP Eddie Kwizera pressed for evidence of a study validating the merger's financial benefits, referencing past challenges with the Uganda Electricity Board.

Emmanuel Otaala, chairing the committee, requested information on the current and future wage bills to understand the merger's rationale better, emphasizing the objective to eliminate role duplication and reduce unnecessary spending.

Concerns were also raised regarding the neglect of the Rural Electrification Agency's (REA) duties, with MPs questioning the impact on service delivery.

Bunya County West MP Aggrey Bagiire lamented the incomplete projects, and Moses Kamuntu from Rubanda County West reported unutilized electricity poles due to the absence of a transformer in his area.

The committee concluded by advising a comprehensive evaluation of the merger, taking into account past reforms and the current state of the electricity sector.

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