UEDCL revenues jump to Shs70bn

UEDCL revenues jump to Shs70bn

Technology, network expansion and investments in a new pole plant will drive revenues up going forward, executives say | JULIUS BUSINGE | Uganda Electricity Distribution Company Limited has reported a sharp rise in revenue from Shs54bn in FY2017/2018 to Shs70bn in FY2018/2019 citing increased electricity network in rural areas.

Paul Mwesigwa, the company’s managing director said at a press briefing on Nov.05 that the drop in operational losses from 29% to 20.1% during the period under review also helped the state-owned agency to register good performance.

UEDCL operates various businesses including leasing out its electricity distribution infrastructure to Umeme, electricity pole plant operation and electricity distribution in eight territories dotted countrywide under the management agreement with Rural Electrification Agency.

However, each business unit reports its own performance annually, according to the company executives.

UEDCL financial performance also shows that while its operating revenues increased by 32.5%, total expenses increased by 39.7% thus leading to 8% decrease in EBTIDA during the period under review.

This, according to Mwesigwa was mainly due to an increase in staff numbers from 313 to 342 in order to comply with the field operational safety standards as the business expanded.

There was also an increase in the network repairs and maintenance costs from Shs3.2bn to Shs7.0bn as a result of poles and transformer replacements.

UEDCL had a power distribution loss of 20%, which is 2% above the 18% loss target set by the regulator during the FY2018/19.

The remaining power loss of 14% resulted from losses that accrued from evacuating small and mini hydros that do not have transmission infrastructure but rather use the company’s 33kV lines to evacuate power.

However, overall, UEDCL recorded 34% loss as it strives to achieve at least 18% power losses.

Challenges still remain The company, however, had a number of fiscal challenges including Umeme’s failure to pay lease fees for the leased assets arising from depreciation and return on equity owed to the fact that Electricity Regulatory Authority is yet to give a go-a head.This led to the depletion of the national assets leading to a net loss of Shs.9.6bn and a decrease in the shareholders’ funds from Shs.211.5bn to Shs.201.9bn.The Independent understands that Umeme has not paid lease fees as per the terms and conditions in their contract since 2011.Umeme was supposed to pay approx.Shs16bn per year, which translates into Shs2.3trillion for the entire period since 2011.Julius Wandera, the spokesperson for ERA told The Independent that the […]

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