Government bills could constrain UEDCL’s liquidity and its capacity to maintain reliable electricity supplyBy Prisca WanyenyaParliament has learnt that over 10 government agencies owe Uganda Electricity Distribution Company Limited (UEDCL) unpaid electricity bills to a tune of UGX269Bn, among which include Ministry of Defence, UBC, Mulago Hospital, Uganda Police, Uganda Prisons and worst of all, Ministry of Energy that is meant to oversee the operations of UEDCL.The revelation was made by Dan Kimosho, Chairperson, Parliament’s Committee on Environment and Natural Resources, while presenting the report of the Inquiry into Persistent Power Supply Outages in the Country, during the 5th November 2026 plenary sitting.“The Committee was informed that Government electricity arrears stood at UGX269.84 billion as at 30 September 2026, including UGX23 billion previously reported as arising from emergency credit on prepayment accounts serving institutions such as prisons and government hospitals. UEDCL also reported inadequate budget provision for electricity consumption across 502 Government postpaid accounts,” Kimosho said.According to the Committee, Government entities’ indebtedness to UEDCL rose from UGX224.84 billion on 30th June 2026 to UGX269.84 billion as at 30th September 2026, an increase of about UGX45.00 billion in one quarter, against average quarterly billing of about UGX27.96 billion.Details before Parliament indicate that the Ministry of Defence and Veteran Affairs accounted for UGX190.53 billion (70.6 per cent of the total), followed by Uganda Prisons Services at UGX29.86 billion (11.1 per cent), Uganda Police Force at UGX25.88 billion (9.6 per cent), Uganda Broadcasting Corporation (UBC) at UGX10.44 billion (3.9 per cent), and Mulago National Referral Hospital at UGX7.61 billion (2.8 per cent) and Ministry of Energy and Mineral Development UGX1.46Bn.“Government bills could constrain UEDCL’s liquidity and its capacity to maintain reliable electricity supply. It emphasised that the reported arrears required reconciliation to establish the amounts payable by each entity. The Committee further noted that UEDCL’s reported collection of 100 percent of billed energy required clarification of the reporting period, calculation method and treatment of outstanding arrears,” Kimosho said.Legislators want the Ministry of Finance, UEDCL and the relevant government entities to reconcile the reported UGX269.84 billion in government electricity arrears to establish the verified amount payable by each Vote, and implement a funded settlement plan supported by adequate budget provision and timely payment for current consumption, provide funded arrangements for continuity of electricity supply to essential institutions with defined limits, authorisation and repayment arrangements for emergency credit.Fragile, Ageing GridAccording to the Committee on Environment and Natural Resources, most interruptions experienced by consumers arise from the poor state of the distribution network itself, including dilapidated, ageing and overloaded assets that were inherited from UMEME.Parliament was informed that the current UEDCL network has 47 per cent of its power transformers older than 30 years, 74 per cent of distribution transformers with poor or no protection, 12 substations loaded above 80 per cent, and overgrown vegetation contact as the most common single cause of faults.“The rehabilitation of the distribution network through re-investments, refreshments and load reduction projects is among the mitigative measures needed to secure reliable supply of electricity to the end users,” Kimosho said.The report also added that the persistent power outages arise from interconnected weaknesses in generation, transmission and distribution, compounded by inadequate maintenance, financing constraints and weak institutional coordination.“The transition from Umeme to UEDCL exposed a substantial investment backlog and unresolved concerns about asset condition and the adequacy of handover arrangements. Addressing these inherited challenges requires a funded recovery programme, while holding UEDCL accountable for maintenance, investment execution and service delivery under its mandate. Progress must be demonstrated through fewer and shorter outages, timely connections and dependable electricity for essential services, businesses and households,” Kimosho said.Parliament was informed that 232,586 customers who fully paid for electricity connection as of 31 July 2026 are yet to be connected, and UEDCL is grappling with increased energy losses of approximately 17.9 per cent against a stated target of 13.65 per cent.“The evidence before the Committee shows that the distribution grid is in a fragile condition, characterised by a mismatch between rapidly growing demand and limited network capacity. Domestic maximum demand rose from 986.38 MW in April 2025 to 1,187.68 MW in February 2026, an increase of about 20 per cent in less than a year, while power transformer capacity grew by only about 25 per cent over five years,” Kimosho said.Although the Committee admitted that persistent interruptions pose risks to healthcare, water supply, refrigeration, education, digital services and industrial production, there was no quantification on the impact of interrupted power supply had on Uganda’s economy.“The evidence before the Committee did not establish a quantified national economic loss or verify specific incidents at individual facilities. Government should assess these effects systematically and prioritize critical supply nodes, to ensure security of power supply for essential services,” Kimosho said.The post Defence, Police, Prisons, UBC Biggest Defaulters as Gov’t Agencies Owe UEDCL Shs269bn appeared first on Business Focus.