Eronda
Senior Member
- Dec 16, 2025
- 187
- 149
Uganda Electricity Transmission Company Limited (UETCL) faces Shs1.48 trillion ($400 million) in receivables, primarily from unpaid electricity bills by distributors like Umeme and UEDCL, plus government arrears exceeding Shs63 billion, many over a decade old.
These debts have flipped UETCL's operating margin to a negative 23%, causing a Shs293 billion net loss in the latest year, impairing cash flow for generator payments and grid maintenance amid rising energy demand.
The entity faces a receivables problem(Money someone owes you)
The biggest part of this problem is Umeme, which holds about Shs597.1b due to UETCL. Some of this money has been outstanding for years, dating back to 2014.
Part of the issue comes from how payments were structured. About Shs145.8b was withheld by Umeme due to unpaid electricity bills by government ministries, departments, and agencies.
Another Shs96.1b relates to the final invoice for March 2025, part of which has since been settled by UEDCL. But the bigger issue is uncertainty.
After Umeme’s concession ended in March 2025, the remaining balance became subject to arbitration. That means UETCL cannot be sure when, or if, all this money will be recovered.
Energy minister Ruth Nankabirwa said the whole matter is a court process and would be concluded by 2027.
UETCL is also being owed around shs.356.9b by UEDCL from unpaid bulk electricity bills dating from 2019, some of this money was withheld due to disputes over electricity losses.
Auditor General Edward Akol said UETCL needs to strengthen revenue collection and speed up recovery of outstanding balances to avoid further cash flow strain.
Source: Daily Monitor
These debts have flipped UETCL's operating margin to a negative 23%, causing a Shs293 billion net loss in the latest year, impairing cash flow for generator payments and grid maintenance amid rising energy demand.
The entity faces a receivables problem(Money someone owes you)
The biggest part of this problem is Umeme, which holds about Shs597.1b due to UETCL. Some of this money has been outstanding for years, dating back to 2014.
Part of the issue comes from how payments were structured. About Shs145.8b was withheld by Umeme due to unpaid electricity bills by government ministries, departments, and agencies.
Another Shs96.1b relates to the final invoice for March 2025, part of which has since been settled by UEDCL. But the bigger issue is uncertainty.
After Umeme’s concession ended in March 2025, the remaining balance became subject to arbitration. That means UETCL cannot be sure when, or if, all this money will be recovered.
Energy minister Ruth Nankabirwa said the whole matter is a court process and would be concluded by 2027.
UETCL is also being owed around shs.356.9b by UEDCL from unpaid bulk electricity bills dating from 2019, some of this money was withheld due to disputes over electricity losses.
Auditor General Edward Akol said UETCL needs to strengthen revenue collection and speed up recovery of outstanding balances to avoid further cash flow strain.
Source: Daily Monitor
