Demand overwhelms UMEME
Jun 12, 2008
UMEME, the power distributor, has been boosted with another $10m as hundreds of new consumers apply for electricity connection.
By Ricks Kayizzi
UMEME, the power distributor, has been boosted with another $10m as hundreds of new consumers apply for electricity connection.
Paul Mare, the general manager, announced on Wednesday that Globeleqe, the main shareholder, released the money to refurbish the electricity distribution system in the face of continued demand.
“Demand for new connections from consumers has more than doubled from 1,400 a month to 3,000 currently.
“This has given us a huge backlog, which we are trying to clear in the next three weeks,†he told reporters at the UMEME offices at Rwenzori House, Kampala.
Mare attributed this to the booming economy, which he said had led to the erection of new industrial units and residential houses.
“Demand for electricity is reportedly increasing by five mega watts per month.
“In order to clear the backlog of new applicants, we have hired 1,000 technicians and imported all materials required to handle the situation,†he said.
Mare, however, warned of a continued rise in electricity prices due to the surging global diesels prices.
More than half of electricity consumed in Uganda is generated by diesel fired generators.
Mare explained that although their 20-year concession required them to make 60,000 new connections in the first five years since they inherited the distribution network in 2005, they had so far connected 63,000 clients.
The concession deal also required UMEME to make a minimum investment in the network to a tune of $65m in the first five years of the contract.
Mare said to date, Globeleqe, the UK-based UMEME owners, had invested $30m, with a further tranche of $10m expected at the end of the year.
UMEME, the power distributor, has been boosted with another $10m as hundreds of new consumers apply for electricity connection.
Paul Mare, the general manager, announced on Wednesday that Globeleqe, the main shareholder, released the money to refurbish the electricity distribution system in the face of continued demand.
“Demand for new connections from consumers has more than doubled from 1,400 a month to 3,000 currently.
“This has given us a huge backlog, which we are trying to clear in the next three weeks,†he told reporters at the UMEME offices at Rwenzori House, Kampala.
Mare attributed this to the booming economy, which he said had led to the erection of new industrial units and residential houses.
“Demand for electricity is reportedly increasing by five mega watts per month.
“In order to clear the backlog of new applicants, we have hired 1,000 technicians and imported all materials required to handle the situation,†he said.
Mare, however, warned of a continued rise in electricity prices due to the surging global diesels prices.
More than half of electricity consumed in Uganda is generated by diesel fired generators.
Mare explained that although their 20-year concession required them to make 60,000 new connections in the first five years since they inherited the distribution network in 2005, they had so far connected 63,000 clients.
The concession deal also required UMEME to make a minimum investment in the network to a tune of $65m in the first five years of the contract.
Mare said to date, Globeleqe, the UK-based UMEME owners, had invested $30m, with a further tranche of $10m expected at the end of the year.