Energy Sector Rationalisation; Experiences from a Developing Economy

Abstract

In the ever-changing environment, economies, both developed and developing, are ever in search of means of achieving cost and service efficiency in order to serve their people. This relates to the Uganda Public Service, which has undergone several reforms, including the liberalisation of the energy sector. This study unravels the experiences of the Ugandan government’s turnaround initiative to rationalise (mainstream) the hitherto semi-autonomous government agency (Rural Electrification Agency [REA]), housing it in the Ministry of Energy and Mineral Development (MEMD). We preferred a constructionist view, where the storyline is constructed between the researcher and the participants to gain in-depth individual and group experiences. Views from in-depth interviews and focus group discussions (FGDs) were galvanised with document review. Key results indicated that the rationalisation efforts faced the challenge of poor employee adaptability. Furthermore, the government anchored its decision to rationalise REA on the cost-saving parameter. However, the government will likely lose more in the long run since staff output and efficiency levels declined. We recommend that the government urgently improve the general terms and conditions of the mainstream public service for rationalisation to succeed.