Energy losses overwhelm UMEME
Feb 07, 2008
POWER distributor, Umeme, has admitted that the current electricity distribution losses are high, costing the economy about sh3.4b annually.
By Ibrahim Kasita
POWER distributor, Umeme, has admitted that the current electricity distribution losses are high, costing the economy about sh3.4b annually.
Paul Mare, the managing director, told reporters on Wednesday in Kampala that the losses increased by 37% from June to December 2007.
“At current electricity prices, for every 1% loss, the cost to the consumer and the industry is over sh1b per annum. So clearly, we have an issue of significant national importance to resolve,†he said.
“Losses expressed as a three-month moving average have improved from just 40% to just over 32% in the period March 2005 to June 2007. However, the losses strategy in the past several months has had a lesser impact on the total losses figure.â€
The New Vision in December reported that Umeme was losing about 95.29 megawatts, creating doubt whether the firm was committed to reducing electricity losses.
The losses were about 37.37% of the 255 megawatts generated from hydropower facilities in Jinja and the thermal power generated in Lugogo and Kiira power stations.
At the time, UMEME attributed the losses to increased electricity supply in November.
Mare disclosed that the distributor had embarked on a loss reduction strategy to address the technical and non-technical losses.
“We have a dedicated loss reduction unit. We have a separate confidential investigations unit that pursues those who are causing us financial losses,†Mare said.
“Our experience is that in those areas that have been audited and regularised, most previously illegal connections and tampered meters are almost immediately tampered with again. It seems that the penalty that is levied is not an adequate deterrent.â€
He said to address the technical losses, the firm would install grid metering at strategic points in the network, audit entire network, undertake capital works to reduce losses and improve power usage.
“Currently, we have 4,000 accounts which, due to system faults in the old billing system, could not be billed. A system amendment has been implemented and the issue was resolved,†he said.
“To date, sufficient upgrades have been determined to meet our 2007 and 2008 capital plans.â€
POWER distributor, Umeme, has admitted that the current electricity distribution losses are high, costing the economy about sh3.4b annually.
Paul Mare, the managing director, told reporters on Wednesday in Kampala that the losses increased by 37% from June to December 2007.
“At current electricity prices, for every 1% loss, the cost to the consumer and the industry is over sh1b per annum. So clearly, we have an issue of significant national importance to resolve,†he said.
“Losses expressed as a three-month moving average have improved from just 40% to just over 32% in the period March 2005 to June 2007. However, the losses strategy in the past several months has had a lesser impact on the total losses figure.â€
The New Vision in December reported that Umeme was losing about 95.29 megawatts, creating doubt whether the firm was committed to reducing electricity losses.
The losses were about 37.37% of the 255 megawatts generated from hydropower facilities in Jinja and the thermal power generated in Lugogo and Kiira power stations.
At the time, UMEME attributed the losses to increased electricity supply in November.
Mare disclosed that the distributor had embarked on a loss reduction strategy to address the technical and non-technical losses.
“We have a dedicated loss reduction unit. We have a separate confidential investigations unit that pursues those who are causing us financial losses,†Mare said.
“Our experience is that in those areas that have been audited and regularised, most previously illegal connections and tampered meters are almost immediately tampered with again. It seems that the penalty that is levied is not an adequate deterrent.â€
He said to address the technical losses, the firm would install grid metering at strategic points in the network, audit entire network, undertake capital works to reduce losses and improve power usage.
“Currently, we have 4,000 accounts which, due to system faults in the old billing system, could not be billed. A system amendment has been implemented and the issue was resolved,†he said.
“To date, sufficient upgrades have been determined to meet our 2007 and 2008 capital plans.â€