Uganda Electricity Transmission Company Limited (UETCL) is burdened by Shs1.48 trillion in outstanding receivables, mainly from unpaid electricity bills by Umeme, UEDCL, and government entities.
The massive debts have triggered huge impairments, flipping the company from profit to a Shs293.1 billion net loss.
Uganda Electricity Transmission Company Limited (UETCL) is struggling with a massive receivables crisis totaling Shs1.48 trillion. These debts stem from unpaid electricity bills, advances, and balances owed by key players in the power sector.
The largest chunk, Shs597.1 billion, is due from Umeme, with some debts lingering since 2014. Part of this includes Shs145.8 billion withheld over unpaid government bills.
Following Umeme’s concession end in March 2025, the balance entered arbitration, prompting UETCL to book a Shs484.3 billion impairment for potential non-recovery.
Energy Minister Ruth Nankabirwa noted at UETCL’s AGM that the Umeme issue is sub judice and may resolve by 2027. Meanwhile, UEDCL owes Shs356.9 billion from bulk bills since 2019, including disputes over energy losses partially addressed by the Electricity Regulatory Authority (ERA).
Government entities owe Shs63.9 billion as of June 2025, up from the prior year, with some debts over a decade old. Additional receivables include Shs26.3 billion from telecoms for optic fibre and Shs29.6 billion from defunct distributors.
These delays strain UETCL’s cash flow, as it must still pay generators like Independent Power Producers. The fallout is stark: operating margin plunged to -23% from +7.36%, yielding a Shs293.1 billion net loss versus last year’s Shs82.3 billion profit, driven by debt provisions.
UETCL is pushing for debt recovery, tariff adjustments via ERA, and better revenue systems, as urged by Auditor General Edward Akol.
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