Uganda Electricity Distribution Company Limited has registered a strong operational and financial rebound in its first year of managing the country’s electricity distribution network, posting Shs1.71 trillion in revenue as it stabilised a system inherited from private operators.
The performance comes a year after the government repossessed the distribution mandate from Umeme Limited on April 1, 2025, in a transition referred to as the “Big Switch,” returning the function to state control after two decades.
In its one-year report, UEDCL said the takeover marked an improvement for the electricity sub-sector, which was unbundled 25 years ago into three entities, including Uganda Electricity Generation Company Limited, Uganda Electricity Transmission Company Limited, and UEDCL.
Despite early turbulence characterised by widespread outages and aging infrastructure, the company says it has since stabilised the national grid while expanding access and improving operational efficiency.
“The past year demanded strong leadership, focus and resilience,” said Managing Director Paul Mwesigwa.
“The Big Switch has impacted the nation’s industrial capacity, Gross Domestic Product, social and economic transformation, and created job opportunities for Ugandans,” he said.
He added that the grid has relatively stabilised and investments are now flowing into the asset.
According to the report, UEDCL currently serves about 2.7 million customers across the country, having added 236,326 new electricity connections within the first year. The company operates the largest distribution network in Uganda, with a nationwide footprint spanning Central, Western and North Eastern regions.
The utility also emerged as a major contributor to government revenue, remitting Shs132.5 billion in taxes while maintaining near full staffing levels at 99.5 percent of its approved workforce structure.
Financial indicators show a stable start, with revenue standing at Shs1.71 trillion by February 2026, supported by a gross margin of 22 percent and an EBITDA margin of 9 percent. The company projects revenue to rise to Shs2.62 trillion by the end of the financial year, with improved profitability driven by efficiency gains and increased electricity sales.
UEDCL attributed this performance to rising demand for electricity, with domestic peak demand increasing from 986 megawatts in April 2025 to 1,188 megawatts in February 2026, representing a 20.4 percent growth.
The company also recorded a 12 percent increase in average daily electricity purchases from UETCL, reflecting expanded distribution capacity and a growing customer base.
To sustain this growth, UEDCL has unveiled an ambitious five year investment plan worth over 994 million dollars aimed at rehabilitating and modernising the country’s aging electricity infrastructure.
“This programme is not only a capital plan but a systematic recovery and growth strategy to transform an outdated distribution network into a modern, dependable and scalable power system,” the report stated.
The investment will target three key areas including expansion of electricity access through last mile connections, improvement of network reliability and quality of supply, and replacement of obsolete equipment using modern technology.
The company plans to connect at least 300,000 new customers annually over the next five years, translating into an additional 1.5 million connections, as Uganda pushes toward universal electrification and industrial growth.
In the first year alone, UEDCL committed significant resources toward stabilising the grid, including transformer relocations, substation upgrades, and installation of protection systems across key areas such as Kasese, Bombo, Mbale Industrial, Mukono, Jinja Industrial and Hoima.
“These interventions have improved fault detection, reduced outages and strengthened supply reliability, benefiting tens of thousands of customers across the country,” the report noted.
At the same time, the company undertook major procurements worth over Shs412 billion for critical materials, including transformers, cables, meters, and network equipment, alongside an additional Shs20 billion committed to labour and logistics support.
UEDCL also demonstrated strong financial discipline by paying Shs1.71 trillion to UETCL for bulk electricity purchases within its first ten months of operation, ensuring stability in the national power supply chain.
In a landmark move, the company secured a $50 million financing facility from Absa Bank Uganda, becoming the first government agency to directly borrow for infrastructure investment at relatively low interest rates.
However, the transition was not without challenges. UEDCL revealed that much of the infrastructure inherited at takeover was aging and, in some cases, operating beyond its recommended lifespan.
“The condition of the distribution network rather than the company’s ability to run the grid is the primary cause of outages,” the report explained, citing old transformers, weak protection systems and worn out equipment as key constraints.
Additionally, persistent vandalism of electricity infrastructure continues to disrupt operations and divert resources from planned investments.
“What emerges is a recurring pattern of deliberate damage to critical infrastructure, often in areas where restoration works have just been completed,” the company said.
Despite these challenges, UEDCL reported strong operational performance, including a cash collection rate averaging 101 percent, indicating improved revenue efficiency and financial sustainability.
The company successfully transitioned its ICT systems after Umeme’s exit, ensuring seamless billing, vending, and customer service from day one.
Looking ahead, UEDCL’s focus remains on strengthening the grid, reducing energy losses to 13.7 percent in line with targets set by the Electricity Regulatory Authority, and supporting Uganda’s growing industrial base.
“The plan provides a transformative roadmap aimed at delivering safe, reliable, affordable, and sustainable electricity services,” the report stated.
