As Uganda Electricity Distribution Company Limited (UEDCL) settles into its role as the new operator of the electricity distribution network following the exit of Umeme, the focus now shifts from transition to transformation.
Speaking during a recent baraza hosted by Kigo Thinkers at the Electricity Regulatory Authority (ERA) head offices, stakeholders laid out a bold, structured plan aimed at restoring stability, scaling new connections, reducing losses, and upgrading infrastructure.
A tough start, but a clear direction for UEDCL
Protaze Tibyakinura, UEDCL’s Chief Engineer and Technical Services Officer, admitted that the first 15 days of operation had been anything but easy. However, he emphasized that the team had anticipated the pressure.
Their initial focus in April was on restoring stability to a system plagued by outages, many worsened by heavy rains during the handover period. Some 200 faulty transformers have since been replaced, and about 300 damaged electricity poles have been restored.
“We’ve stabilized the network to near what it was under Umeme’s day-to-day operation,” he noted.
The company is now pivoting from restoration to expansion. New electricity connections will begin rolling out next week. Materials are already in UEDCL stores and are being distributed to regional offices.
Tibyakinura assured Ugandans that pending connections previously under Umeme will be addressed at no extra cost, provided customers meet the standard connection requirements.
Beginning in May, UEDCL will start executing a series of capital projects already approved by ERA. One major initiative involves injecting 500 transformers into various points across the country.
These injections aim to reduce strain on overloaded transformers, a key cause of outages and voltage fluctuations, particularly in high-demand zones. The upgrades are part of broader efforts to improve the reliability and quality of the power supply.
Later in the second quarter, the company plans to embark on more extensive projects. These include greenfield investments like substation expansions and complete refurbishments of aging infrastructure.
Tibyakinura emphasized that UEDCL will adopt a predictive maintenance philosophy to minimize costly breakdowns. “It’s much more expensive to wait until structures collapse than to proactively maintain them,” he explained.
A crucial enabler of these ambitions is funding. UEDCL has confirmed that finances are in place for this year’s investment needs. Teams across the country are reportedly working overtime to meet the aggressive project timelines.
ERA CEO Ziria Tibalwa Waako highlighted that UEDCL has access to $100 million (about sh370 billion) over the next nine months to facilitate network restoration and upgrades.
She noted that Umeme had never achieved such a financial deployment in any single year, underscoring the scale of government commitment to the transition.
“UEDCL will initially rely on seed capital from the government, but going forward, it will operate sustainably, recovering investments through the electricity tariff, just as Umeme did,” Waako said.
ERA has set ambitious performance benchmarks for UEDCL. These include reducing energy losses from the current 16% to 14.59% by the end of this year, 13.65% next year, and down to 12.31% the year after.
Revenue collection is expected to stay above 99.85%, bolstered by the prepaid meter system and automated industrial billing. Waako also revealed that all government ministries, departments, and agencies will soon be migrated to three-phase prepaid meters to ensure accountability and timely payments.
What UEDCL Inherited from Umeme
Blessing Nshaho, Umeme’s Chief Corporate and Regulatory Officer, noted that at the time of concession in the early 2000s, Umeme inherited around 250,000 customers and is now handing over a network serving over 2.5 million, an average addition of 100,000 new connections per year, with 220,000 made in 2024 alone.
On the financial side, Umeme took over a company generating sh160b in annual revenue. It exists with the distribution network now yielding sh2.5 trillion per year. The transformer count has risen from 5,000 to 17,000 units, with transformation capacity increasing fivefold from 500 MVA to 2,500 MVA.
Power line coverage has expanded from roughly 17,000 km to 44,000 km across the country.
Staffing numbers rose moderately from 1,600 to 2,400, with a significant leap in productivity. The customer-to-staff ratio improved from 216 to 780. Energy loss, which stood at 38% at the time of takeover, has been halved to 16%, thanks in part to digitalization and improved management.
Collection efficiency improved from between 50% and 80% to nearly 100%, resulting in enhanced monetization of electricity usage, from 48 electrons out of every 100 consumed to 84 currently monetized.
Nshaho emphasized that the digital transformation was central to Umeme’s success. From a fully manual system in 2005, the utility has a completely digitized operation. Customers today can apply for connections, make complaints, and manage their accounts online through mobile and web platforms.
Employee operations are also fully digitized, boosting transparency and accountability.
Umeme also leaves behind 16 substations and 16 switching stations, ten of which are brand new and the rest partially refurbished. The national access rate to electricity has increased from 5% to 57% during its tenure.
While grid access stands at 22%, the inclusion of off-grid solutions like solar expands the total coverage figure.
While UEDCL inherits a much stronger and more modern network than what Umeme took over, the challenges are far from over. Uganda’s population and economy continue to grow at a fast pace, meaning new electricity demand will intensify pressure on the grid.
Tibyakinura pointed out that failure to monitor the system for even a week could lead to a cascade of faults, especially in a live network like Uganda’s.
That reality underscores the urgency behind the planned investments and the need for constant monitoring, maintenance, and capital upgrades. ERA’s roadmap for 100% access by 2030 will require UEDCL to dramatically scale its efforts, not just to maintain current levels but to expand services into underserved and off-grid communities.