Umeme said last month that its Yaka system is overloaded due to the high customer numbers, estimated at 1.5 million. Umeme has been receiving a number of complaints from customers over failure of the Yaka billing system. KAMPALA – Small and medium-sized enterprises (SMEs) have condemned Umeme’s plot to pass on the cost of upgrading its pre-billing system commonly known as Yaka, to consumers.
Speaking under their umbrella organisation – the Federation of Small and Medium-sized industries (FSME), SMEs said the move will increase the cost of power and make it unfordable to consumers who are already financially constrained.
The FSME executive director John Walugembe said: "We have learnt that Umeme intends to charge customers for upgrading its Yaka system because it is overwhelmed but that is wrong.
"Umeme is operating a viable business model and when you get more customers, you look for money to make long-term investments that will ensure that you stay in business."
He added: "Umeme needs not to burden customers any further. If any upgrade in the system is transferred to the final customer, then the cost of electricity will be high." Federation of Small and Medium-sized industries (FSME) executive director, John Walugembe. (File photo) Umeme said last month that its Yaka system is overloaded due to the high customer numbers, estimated at 1.5 million.
Umeme has been receiving a number of complaints from customers over the failure of the Yaka billing system.
According to the Umeme managing director Selestino Babungi, the current customer number is now higher than their 10-year old system’s capacity and is due for replacement.
Umeme has 95% of its customers on the prepaid billing system, with only 94,779 still on postpaid.
Babungi said that sector regulator – the Electricity Regulatory Authority (ERA) had approved investment in the system upgrade and that Umeme was in the process of inviting bids and would then determine how much it will need to invest.
Although the ERA Acting manager communications, Diana Nambi said the investment cost was not yet determined, she noted that customers will be required to pay for the investment through the tariff.
"The vending system upgrade will be purchased using tariff money. But it is treated as a non-network asset, so it will not earn Umeme a return on investment," she said.The upgraded system is thus expected to provide a better service experience to customers through increased capacity and stable power.Walugembe, however, advised Umeme to look for a commercial […]