The energy minister was right on power, I dare say!
Nov 17, 2003
SIR— I have read your editorial in The New Vision of November 13 on which I wish to comment as follows:
SIR— I have read your editorial in The New Vision of November 13 on which I wish to comment as follows:
Firstly, you imply that the instructions by the Minister of Energy to the Uganda Electricity Distribution Company (UEDCL) and the Uganda Electricity Transmission Company Ltd (UETCL) to withdraw their application to the Uganda Electricity Authority (UEA) to increase the tariffs was popular to the public but it was bad to the economy.
As regards the economy, I know that the public is paying for the use of electricity and already there is a big outcry about the high tariffs that are stifling the manufacturing industry. Already a number of products are not competing locally, regionally and even globally. Increasing the tariffs will make it worse considering our industrialisation programme.
Secondly, it is true that only ERA can raise or lower electricity tariffs, but the minister’s instructions are not directed to the ERA, Mrs Syda Bbumba addressed herself to UEDCL and UETCL who are for all intents and purposes departments of her ministry to withdraw their submission to the ERA.
It appears the two institutions did not consult sufficiently since even their minister was not aware of the proposed tariff increases.
I am aware that there was to be a stakeholders’ workshop at which any objections were to be discussed. But the minister deserved a separate forum.
Thirdly, you indicate that the two companies are still loss making, which, we consumers, have every reason to believe, is due to inefficiency. Operation Sigma was decades overdue and present consumers should not be made to pay for earlier mismanagement.
After the Government has injected sh26b in the sector, the minister has every reason to query the recommendations of the increased tariffs. If UEDCL recommendations were intended to enable the company refund the Government subsidy that would be another matter.
Fourthly, the potential investors should take over the management of the two companies knowing very well that they will depend on efficiency rather than increased tariffs if they are to manage the energy sector commercially.
With increased efficiency
we shall have lower tariffs
and electricity will be
affordable by the majority
of the rural population who are due to get on the grid under the Rural Electrification Project.
I find it odd that in this new technological age, there is no scheme for paying for power as we use it. The telephone industry needs to be saluted
in this respect.
Christopher Muinda Dhatemwa
Kampala
Firstly, you imply that the instructions by the Minister of Energy to the Uganda Electricity Distribution Company (UEDCL) and the Uganda Electricity Transmission Company Ltd (UETCL) to withdraw their application to the Uganda Electricity Authority (UEA) to increase the tariffs was popular to the public but it was bad to the economy.
As regards the economy, I know that the public is paying for the use of electricity and already there is a big outcry about the high tariffs that are stifling the manufacturing industry. Already a number of products are not competing locally, regionally and even globally. Increasing the tariffs will make it worse considering our industrialisation programme.
Secondly, it is true that only ERA can raise or lower electricity tariffs, but the minister’s instructions are not directed to the ERA, Mrs Syda Bbumba addressed herself to UEDCL and UETCL who are for all intents and purposes departments of her ministry to withdraw their submission to the ERA.
It appears the two institutions did not consult sufficiently since even their minister was not aware of the proposed tariff increases.
I am aware that there was to be a stakeholders’ workshop at which any objections were to be discussed. But the minister deserved a separate forum.
Thirdly, you indicate that the two companies are still loss making, which, we consumers, have every reason to believe, is due to inefficiency. Operation Sigma was decades overdue and present consumers should not be made to pay for earlier mismanagement.
After the Government has injected sh26b in the sector, the minister has every reason to query the recommendations of the increased tariffs. If UEDCL recommendations were intended to enable the company refund the Government subsidy that would be another matter.
Fourthly, the potential investors should take over the management of the two companies knowing very well that they will depend on efficiency rather than increased tariffs if they are to manage the energy sector commercially.
With increased efficiency
we shall have lower tariffs
and electricity will be
affordable by the majority
of the rural population who are due to get on the grid under the Rural Electrification Project.
I find it odd that in this new technological age, there is no scheme for paying for power as we use it. The telephone industry needs to be saluted
in this respect.
Christopher Muinda Dhatemwa
Kampala