Electricity tribunal hits snag over absence of energy ministry PS

Jan 30, 2015

Hearing at the electricity disputes tribunal in the row between Umeme and ERA hits a snag over the absence of Energy ministry PS Kaliisa Kabagambe.


By Andante Okanya

KAMPALA - Hearing at the electricity disputes tribunal in the row between electricity distributor Umeme Limited and Electricity Regulatory Authority (ERA), hit a snag over the absence of  Energy ministry permanent secretary (PS) Fred Kaliisa Kabagambe.


On Thursday, Umeme lawyer Andrew Kasirye informed the tribunal sitting at Amber House in Kampala that Kabagambe is unavailable, as he is on leave till February 5.

Kabagambe had been scheduled to verify contents of the Report on Electricity Tariff Reduction, September 2009.

The tribunal is chaired by Charles Okoth-Owor. The other members are Moses Musaazi, and Anaclet Turyakira.

Flanked by his legal assistant Emmanuel Baluti, Kasirye requested for an adjournment, explaining that efforts to have the acting PS Eng.Paul Mubiru to testify were bogged by red tape.

"We had sought to have the acting PS Eng. Mubiru appear instead of the substantive PS. However, there seem to be procedural issues in Public Service that do not allow him," Kasirye explained.

But ERA lawyers Joseph Byamugisha and Kabiito Karamagi objected, saying Kabagambe should have utilised this time to appear before the tribunal as summoned.

"The witness should come at his own time when he is on leave. He should not use government time against a government agency,"  Byamugisha pressed.
 

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Energy ministry permanent secretary (PS) Fred Kaliisa Kabagambe. (File photo)

 


From left, ERA lawyer Kabito Karamagi chats with Stephen Mwanda and Stephen Wandera at Amber House on January 29, 2015. (Photo credit: Kennedy Oryema)

However, the tribunal granted the adjournment, and consequently re-scheduled to March 27. Okoth-Owor explained that it was a crucial matter that necessitated Kabagambe's input.

The Umeme general manager corporate and regulatory affairs, Sam Zimbe, was present at the tribunal.

The dispute arose in 2012 when Umeme petitioned over modifications made to its supply of electricity license.

Umeme contends that it was not given ample opportunity to appeal before the changes, which ERA made between 2012 and 2013, were gazetted.

ERA gazetted the amended license following a mandatory review in accordance with the provisions of its Act of 1999.

Umeme is also displeased with the tariff methodology which determines end-user tariffs based on inflation, exchange rates and fuel costs without inviting public opinion through a forum.

Section 3.1.1 of Umeme's license for Supply of Electricity states that: "Licensee shall be entitled to recover its costs of conducting the licensed activity as such costs are reflected in the retail tariff.

It said the move contravened the Electricity Application for Permit, Licence and Tariff Review 2007. The public forum would have showed public interests in the amendments.

The Authority, however, contends that it fully complied with all the procedural requirements provided for under Section 44 of the Electricity Act in effecting the amendment to Umeme's license.

The modifications meant that ERA clawed back $14.6m (about sh37.827b) on account of excess energy sales and income taxes which Umeme did not pay to Uganda Revenue Authority (URA) but which consumers had paid in the retail tariff.

In the past, the practice has been that ERA would allow the taxes to be included in the end-user tariffs from which Umeme was obliged to pay URA. The amount was based on the projections of volumes of electricity that would be sold.

For 2012, although ERA had projected Umeme would sell 1, 735 giga watt-hours (GWh) of electricity (which is what Umeme sold in 2011), the company actually sold 1, 937 GWh, according to the utility's 2012 Annual Report.
 

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