A richer world: Ugandans should listen to the fridge

By David Birungi

At the beginning of October, the World Bank released new global poverty levels indicating the continued decline in percentage of people living below $1.90 per day to 9.63% down from 12.8% (2012).

The news of more people jumping or crawling out of poverty is welcome news in Uganda where the average annual power consumption per capita is under three kilowatt hours (3kWh). 

Earlier, the world leaders committed to the Sustainable Development Goals that largely focus on ending extreme poverty by 2030. The 7th goal is to ensure access to affordable, reliable, sustainable and modern energy for all.

Four months earlier, the World Bank unveiled a USD $168 Million third phase of the energy for rural transformation project in Uganda. Over 85% of the project resources is aimed at extension of the transmission, and distribution infrastructure. The infrastructure is necessary for the evacuation of the combined 750MW Karuma and Isimba Generation capacity.

The World Bank is also financing the Output Based Aid (OBA) project that allows free access to electricity by poor households in Uganda. Over 70,000 free new connections have so far been made by the power distribution companies across Uganda.

According to the World Bank report, more people are ascending out of poverty, the world is getting richer. But for whom? The discussion about financing the energy consumption for this richer world, specifically Uganda needs to remain on the table. The Electricity Regulatory Authority (ERA) is expected to announce the fourth quarter end –user power tariff structure anytime from now.

In the third quarter schedule, ended 30th September 2015,  the domestic power tariff structure allows 15 kilowatt hours (kwh) per month as the life line discounted at UGX 150/= or 0.04 US cents. This is intended to cater for powering basic human needs like safe light, access to information by charging phones and powering television.

As households become ‘richer’ they acquire more luxurious electronics ranging from rice cookers, kettles, micro waves, and home theatre systems to Jacuzzis, air conditioners and chandeliers. Their energy consumption is directly proportional to usage which is reflective to better incomes. The current power tariff structure lumps the price of this energy at UGX558.4/= per kilowatt hour or 0.15 US cents. 

The refrigerator, fondly referred to as the fridge by Ugandans is the appliance of interest where the ‘richer’ households’ behavior can be well observed. Frost free fridges have emerged and the National Environment Management Authority (NEMA) banned the importation of second hand fridges in Uganda.  This behavior also known as Fridgenomics could shape financing options for private luxurious energy consumption for a richer Uganda.

The bachelors need a fridge to demonstrate a sense of responsibility, and give confidence to the suitors that a good meal can be fixed in his living quarters. He also needs the fridge to chill the bottle of wine and associated ice cubes. It is a status symbol; better if it is frost free and has two doors.

Young parents need it for different reasons. To chill baby milk 24/7 some of it extracted by breast pumps. To them this fridge is a necessity whose energy consumption should be included in the famous Lifeline units; the discounted first 15 kWhs. This only presents a dilemma for policy makers considering that majority of Ugandans, 74%, have no access to electricity. So this consumption can’t be categorized as necessity, at least not morally. The over thirty million Ugandans without access to power would cause an uproar.

When the children shed their milk teeth, the fridge reincarnates into a status symbol. The richer Ugandans start shopping fresh, and are more conscious about what they eat as fruits, fresh vegetables, and dairy products drawn mostly from the fridge.  Their security consciousness makes them keep guard dogs who feed has a place in the deep freezer compartment of the fridge. Should the rest of Ugandans subsidize this energy consumption? No. Premium power consumers should pay premium rates.

The fridge has a pivotal place in reducing child mortality. It keeps vital vaccines needed for immunization in any health facility. If such a facility is powered at the same voltage of 240 volts, it is charged same price as a fridge cooling ice cubes for a home mini bar. An air conditioner at the same voltage level, will be charged same rates irrespective of whether it cools air in a palatial living room or an operating theatre at a health centre.

The development partners have supported programs to expand generation of, and access to electricity. The growing number of ‘rich’ people needs to optimally finance their energy consumption, while placing realistic demands for excellent service quality from power utility firms.

The writer is the manager, Digital media services Umeme