Technicians from the power utility firm Umeme at work in Kampala, Uganda. The company is Uganda’s sole power distributor. FILE PHOTO | NMG The power distributor is preserving hard cash that may be needed to meet performance targets set by the Electricity Regulatory Authority.
Total electricity sales rose to $219.5 million in June this year from $199.3 million in June 2018 while total assets rose to $688 million.
Overall customer numbers grew by 93,580 to 1.4 million as at the end of June 2019, driven largely by government’s Electricity Connections Policy.
Uganda power distributor Umeme Ltd’s net profit before tax for the first six months of this year has grown by 29.5 per cent to Ush113 billion($30.4 million), but shareholders will not receive half-year dividends as the company grapples with unresolved issues with the sector regulator over performance targets.
The firm will direct funds towards meeting these targets.
Total electricity sales rose to Ush815.7 billion ($219.5 million) in June this year from Ush740.8 billion ($199.3 million) in June 2018 while total assets rose to Ush2.56 trillion ($688 million), according to latest financial results published on August 29.
Total finance costs dropped to Ush45.1 billion ($12 million), from Ush45.7 billion ($12.3 million) over the same period, on account of lower loan repayment costs in the first six months of this year.
Overall customer numbers grew by 93,580 to 1.4 million as at the end of June 2019, driven largely by government’s Electricity Connections Policy launched in November 2018.
Under the policy, rural customers are offered subsidised electrical wiring and poles in an effort to increase access to power in the countryside and boost Uganda’s electricity penetration rates in line with middle income development goals.
However, Umeme’s energy losses rose slightly to 16.9 per cent as at the end of June 2019, from16.7 per cent in June last year.
Stalemate But the stalemate with the Electricity Regulatory Authority over performance targets for the period 2019-2025 has weighed on the company’s operations since April this year.The targets cover revenue collections, energy losses, operating cost allowances and conditions for approving new investments in Umeme’s distribution network.Umeme has termed the targets as unrealistic but ERA remains guarded on the matter following a public hearing held on August 16.A final decision on the review of the targets was yet to be communicated prior to the publication of Umeme’s half-year results.This suspense is what compelled the power distributor to withhold half-year […]