Electricity Price To Rise
Mar 01, 2005
UMEME officially took over the running of the Uganda Electricity Distribution Company Limited (UEDCL) yesterday, warning that the electricity tariff would rise in two months.
By Ricks Kayizzi & Flavia Nakagwa
UMEME officially took over the running of the Uganda Electricity Distribution Company Limited (UEDCL) yesterday, warning that the electricity tariff would rise in two months.
Umeme, a consortium between UK-based CDC Globeleq, with 56% majority shareholding and Eskom Enterprises of South Africa, with 44% shares, has been awarded a 20-year concession to run UEDCL.
After receiving a certificate of transfer from the UEDCL managing director, Eng. Irene Muloni, Umeme’s general manager Paul Mare said their mission was to turn the company into the best power distributor in East Africa in two years.
“When you make a capital investment, you expect a return on investment. That’s why we will need to review the tariff two months after the takeover,†Mare said at Amber House, Kampala yesterday.
Mare said the tariff was likely to go up as they revamp the devastated distribution system, and oversee distribution of 50MW of electricity to be purchased from Kenya by mid this year.
He said most of the 1,500 former UEDCL employees had been retained.
In addition to an investment of $5m for the first 18 months of business, and $65m in the next five years, Umeme is supposed to connect between 15,000 and 20,000 new users on the main grid per year.
Muloni said UEDCL would remain focused on management of assets, which consist of sub-stations, voltage networks, land and buildings, tools and equipment, motor vehicles, information systems, communication systems and furniture, worth sh200b.
“We will operate and maintain the electricity off-grid stations in Moyo, Adjumani and Moroto; manage a pole treatment plant and supervise the completion of the rural electrification schemes,†she said at the press conference.
Muloni said the transfer date was pushed from August 2004 to March 1, 2005 because of issues that needed ironing out between stakeholders, development partners such as the World Bank, the International Development Agency and UEDCL employees.
“Notification of termination of service was given to all 1,500 staff in good time, and terminal benefits to a tune of sh8b put aside, for all who successfully ended service with UEDCL on February 28,†she said.
Elias Kiyemba, the Uganda Electricity Transmission Company managing director, said the shortfall in supply had risen to 120MW. Between 220MW - 230MW is produced at Nalubaale and Kiira power stations in Jinja. The demand is between 300 and 335MW.
Ends
UMEME officially took over the running of the Uganda Electricity Distribution Company Limited (UEDCL) yesterday, warning that the electricity tariff would rise in two months.
Umeme, a consortium between UK-based CDC Globeleq, with 56% majority shareholding and Eskom Enterprises of South Africa, with 44% shares, has been awarded a 20-year concession to run UEDCL.
After receiving a certificate of transfer from the UEDCL managing director, Eng. Irene Muloni, Umeme’s general manager Paul Mare said their mission was to turn the company into the best power distributor in East Africa in two years.
“When you make a capital investment, you expect a return on investment. That’s why we will need to review the tariff two months after the takeover,†Mare said at Amber House, Kampala yesterday.
Mare said the tariff was likely to go up as they revamp the devastated distribution system, and oversee distribution of 50MW of electricity to be purchased from Kenya by mid this year.
He said most of the 1,500 former UEDCL employees had been retained.
In addition to an investment of $5m for the first 18 months of business, and $65m in the next five years, Umeme is supposed to connect between 15,000 and 20,000 new users on the main grid per year.
Muloni said UEDCL would remain focused on management of assets, which consist of sub-stations, voltage networks, land and buildings, tools and equipment, motor vehicles, information systems, communication systems and furniture, worth sh200b.
“We will operate and maintain the electricity off-grid stations in Moyo, Adjumani and Moroto; manage a pole treatment plant and supervise the completion of the rural electrification schemes,†she said at the press conference.
Muloni said the transfer date was pushed from August 2004 to March 1, 2005 because of issues that needed ironing out between stakeholders, development partners such as the World Bank, the International Development Agency and UEDCL employees.
“Notification of termination of service was given to all 1,500 staff in good time, and terminal benefits to a tune of sh8b put aside, for all who successfully ended service with UEDCL on February 28,†she said.
Elias Kiyemba, the Uganda Electricity Transmission Company managing director, said the shortfall in supply had risen to 120MW. Between 220MW - 230MW is produced at Nalubaale and Kiira power stations in Jinja. The demand is between 300 and 335MW.
Ends