Government subsidises new electricity connections

Dec 13, 2022

This programme will be rolled out for Umeme Limited and the Uganda Electricity Distribution Company Limited customers as a pilot

Ruth Nankabirwa the Minister of Energy and Mineral Development speaks during the launch of the framework at the energy ministry offices in Kampala on Tuesday. Photo by Benon Ojiambo

Benon Ojiambo
Journalist @New Vision

The government has launched a programme through which it has subsidised new electricity connection fees.

The programme titled “Hybrid Electricity Customer Connection Financing Framework” was launched by the energy and mineral development minister, Ruth Nankabirwa, in Kampala on Tuesday.

The framework is a response to repeated cries from prospective consumers about the high connection fees that have kept many out of the electricity’s reach despite their proximity to the grid network. Connection fees were as high as sh720,883 for a no-pole connection.

Under the new framework, consumers who require a no-pole connection will pay a down payment of sh200,000 of the sh720,883 to get connected.

Sh270,000 of the entire connection fee will be met by Uganda Development Bank while the remaining sh250,883 will be subsidised by the government.

However, the customer will still be required to meet the cost for the inspection of internal wiring and the initial units of electricity.

This programme will be rolled out for Umeme Limited and the Uganda Electricity Distribution Company Limited customers as a pilot.

“This framework is sustainable given that it combines resources from the consumers, the Government, and the private sector relieving the heavy burden on Government,” Nankabirwa said.

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