UMEME turns to pre-paid meters

Sep 21, 2008

UMEME, the power distributor and the Electricity Regulatory Authority (ERA, are planning to introduce pre-paid meters for the national grid power consumers. The meters and cards would replace the current depleted billing system where most bills are estimated.

By Ibrahim Kasita

UMEME, the power distributor and the Electricity Regulatory Authority (ERA, are planning to introduce pre-paid meters for the national grid power consumers. The meters and cards would replace the current depleted billing system where most bills are estimated.

They will allow consumers to pay upfront for the power they would consume, top officials announced last week.

The scheme would also help consumers avoid the inconvenience of being disconnected in case of non-payment.

Robert Kisubi, the UMEME corporate communication manager, said a pilot project had been discussed between them, the energy ministry and ERA.
“We are in the planning stage,” Kisubi said.

Johnson Kwesigabo, the ERA legal counsel, confirmed the plan.

“We are looking at the issue of installing pre-paid meters.

“UMEME will implement the project,” Kwesigabo said.

“UMEME has already started installing a new billing system which to my opinion is compatible with the pre-paid system,” he intimated.

Kisubi ascertained that the new billing system under installation was “a very versatile modern system and it does have compatibility with the pre-paid system.”

He added that while pre-paid meters may in certain circumstances give a positive effect on power theft, it was not clear that the cost of the meters would be covered by the reduction in theft.

On the cost of installing the pre-paid meters, Kisubi explained that it was difficult at this stage “to give an actual cost as it depends on whether you are doing a split or a single type meter and indeed who the provider will be as the cost varies accordingly.”

He said the cost of changing existing customers from post-paid to pre-paid was expensive.

“Somebody has to bear that cost either through reduction in theft or a combination of financial intervention including the customer themselves paying, public financing or donor funding,” Kisubi said.

He explained that much as the project was not part of the concession agreement on the part of UMEME, the firm “is more than happy to work with other stakeholders particularly the Government to see this pilot project implemented.”

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