Umeme took over the distribution system for the distribution and supply of electricity in Uganda from Uganda Electricity Distribution Company Limited (UEDCL) under the Concession for a period of 20 years, commencing 1 March 2005. Under the Concession, Umeme is also required to repair, upgrade, and expand the Distribution System within Uganda and such contiguous areas as Umeme and Electricity Regulatory Authority (ERA) may agree. Through the concession, Umeme operates as the primary electricity distribution company in Uganda, responsible for distributing electricity to Ugandan residents and commercial entities. UEDCL owns the distribution network that has been leased to Umeme under the Privatisation Agreements.

Umeme purchases electricity from Uganda Electricity Transmission Company Limited (UETCL), which owns and operates the high voltage transmissions network of up to 132kV. UETCL purchases electricity from several sources including: Eskom (U) Limited, operators of the Nalubaale and Kiira hydroelectric power generation stations; Bujagali Energy Limited which operates the Bujagali hydroelectric power plant; Jacobsen Elektro AS, Electro-Maxx, Tronder Power Ltd, and other smaller Independent Power Producers (IPPs). Umeme’s core business activities include Electricity distribution that involves the operation, maintenance, upgrading and expansion of the distribution network within Uganda and Electricity supply and after sales service.