Umeme Tables Shs813Bn Budget for 2021 Amid Protests over High Connection Fees

Umeme Tables Shs813Bn Budget for 2021 Amid Protests over High Connection Fees

Mr. Blessing Nshaho, Umeme’s Chief Corporate and Regulatory Officer presenting the company’s revenue requirement on Friday during a virtual application for tariff review Uganda’s main power distribution utility Umeme has tabled a $219 million (Shs813.2 billion budget) for 2021.

Of that, $119 million (Shs442.4 billion) will be for capital investments in the grid while $60m (Shs222.4bn) will cater for net operating costs.

The company says it will spend $2m (Shs6.6bn) on lease payments and the balance ($38m/Shs141.8bn) on an assortment of other items.

The development comes at a time of increased public outcry as a result of incessant power outages hitting different parts of the country including Kampala.

This situation usually worsens during the rainy season.

Umeme said it would invest in the evacuation of Karuma and Acwa hydropower plants, on improving power supply and expand the network.

Additionally, the distributor will clear the backlog of 240,000 applications for connection, retrofit the 40,000 post-paid meters still in use.

Selestino Babungi, the Umeme managing director, said COVID19 has impacted the way the company does its business.

“2020 was a difficult year for us as a company. We had ambitions plans but COVID19 impacted us. However, we demonstrated resilience and as a company we say that electricity is a fundamental input into the economic transformation of this country so we came out strongly to continue putting in place systems so we continuity of supply and services to our customers,” he said.

Babungi said what the company proposed was anchored in the need to continue investing the distribution network to improve reliability, the quality of supply, evacuation of the Karuma upcoming power, boost the demand and uptake of increased generation and continue to support the government access agenda.

Umeme said it would continue providing them with Personal Protective Equipment, establish even more safety clubs in schools and clearing vegetation near power installations to ensure uninterrupted supply.While presenting the company’s revenue requirement on Friday during a virtual application for tariff review, Blessing Nshaho, Umeme’s Chief Corporate and Regulatory Officer, said prospective electricity customers will soon be applying for connections online.“This would be for the convenience of customers. It would also in line with standard operating procedures on minimising human contact where possible. Presently, one should travel to the company’s office that serves his or her area to pick and fill application forms,” said Nshaho.He said they have been testing the application system over the last couple of months.Babungi said the company has over […]

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