Uganda Electricity Distribution Company Limited (UEDCL) has reported 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 government repossessed the electricity distribution mandate from Umeme Limited on April 1, 2025, in a transition dubbed the “Big Switch,” returning the function to state control after more than two decades.
In its one-year report, UEDCL said the takeover marked a turning point for the electricity sub-sector, which was unbundled 25 years ago into three entities: Uganda Electricity Generation Company Limited (UEGCL), Uganda Electricity Transmission Company Limited (UETCL), 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 industrial capacity, Gross Domestic Product, and broader social and economic transformation, while also creating job opportunities for Ugandans,” he added.
According to the report, UEDCL now serves about 2.7 million customers nationwide, having added 236,326 new electricity connections within its first year. The utility operates the country’s largest distribution network, covering Central, Western, and North Eastern regions.
The company also emerged as a significant contributor to government revenue, remitting Shs132.5 billion in taxes while maintaining staffing levels at 99.5 percent of its approved workforce.
Financial indicators point to a stable start, with revenue reaching Shs1.71 trillion by February 2026. This was supported by a gross margin of 22 percent and an EBITDA margin of 9 percent. UEDCL projects revenue to rise to Shs2.62 trillion by the end of the financial year, driven by efficiency gains and increased electricity sales.
The utility attributed its performance to rising electricity demand, with peak demand growing from 986 megawatts in April 2025 to 1,188 megawatts in February 2026 — a 20.4 percent increase. Average daily electricity purchases from UETCL also rose by 12 percent, reflecting expanded distribution capacity and a growing customer base.
To sustain this momentum, UEDCL has unveiled an ambitious five-year investment plan worth over $994 million 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 noted.
The investment will focus on expanding electricity access through last-mile connections, improving network reliability and quality of supply, and replacing obsolete equipment with 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 its first year, UEDCL undertook major interventions to stabilise the grid, including transformer relocations, substation upgrades, and installation of protection systems in 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,” the report stated.
The company also carried out procurements worth over Shs412 billion for critical materials such as transformers, cables, meters, and network equipment, alongside an additional Shs20 billion spent on labour and logistics.
UEDCL further demonstrated 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 utility 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 noted 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.
Persistent vandalism of electricity infrastructure also 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 hurdles, UEDCL reported strong operational performance, including a cash collection rate averaging 101 percent, signalling improved revenue efficiency and financial sustainability.
The company also successfully transitioned its ICT systems following Umeme’s exit, ensuring seamless billing, vending, and customer service operations from day one.
Looking ahead, UEDCL aims to strengthen the grid, reduce energy losses to 13.7 percent in line with Electricity Regulatory Authority targets, and support Uganda’s growing industrial base.
“The plan provides a transformative roadmap aimed at delivering safe, reliable, affordable and sustainable electricity services,” the report stated.
