Time series analysis of the impact of electricity losses on firm performance in the electricity distribution sector. Case study of UEDCL/UMEME

Date
2026
Authors
Bbossa, Joseph. Kiyingi
Journal Title
Journal ISSN
Volume Title
Publisher
Makerere University
Abstract
Electricity distribution losses remain a persistent challenge in many developing countries and continue to affect the operational efficiency and financial sustainability of electricity distribution firms. This study examines the impact of electricity losses on firm performance in Uganda’s electricity distribution sector, focusing on Umeme Limited and Uganda Electricity Distribution Company Limited. The study employs a time series analysis using secondary data obtained from sector reports and operational records covering the period 2008–2025. The research analyzes trends in electricity losses and evaluates their relationship with key firm performance indicators including energy purchases, energy sales, number of customers, number of employees, network length, operation and maintenance costs, and distribution infrastructure such as transformers and meters. Descriptive statistics are used to examine data trends, while econometric techniques including stationarity testing, multicollinearity diagnostics, and regression analysis are applied to determine the magnitude and direction of relationships between electricity losses and firm performance variables. The findings are expected to provide empirical evidence on how electricity losses influence operational efficiency and revenue generation in the electricity distribution sector. The study contributes to policy discussions on loss reduction strategies and provides recommendations that can help improve efficiency, strengthen regulatory oversight, and enhance the overall performance of electricity distribution firms in Uganda.
Description
A dissertation submitted to the School of Statistics and Planning in partial fulfilment of the requirements of the award of a Bachelor of Science degree in Quantitative Economics of Makerere University
Keywords
Citation
Bbosa, J. K. (2026). Time series analysis of the impact of electricity losses on firm performance in the electricity distribution sector, case study of UEDCL/UMEME. Unpublished bachelors dissertation, Makerere University, Kampala