ERA hikes Umeme’s performance targets
The Electricity Regulatory Authority (ERA) has revised power distributor Umeme’s performance parameters, allowing the latter to invest more on the network in the next seven years
What you need to know:
- On connections, Umeme is expected to connect at least 245,000 customers to the grid by the end of this year.
The Electricity Regulatory Authority (ERA) has revised power distributor Umeme’s performance parameters, allowing the latter to invest more on the network in the next seven years.
While it had earlier specified that this year, Umeme should invest not more $41.8m (Shs153b), it has now provided for $52.1m (Shs191b).
For the years 2020, 2021, 2022, 2023, 2024 and 2025, ERA has increased the amounts to $54.7m (Shs200b), $57.4m (Shs210b), $60.5m (Shs2201b), $63m (Shs231b), $66.4m (Shs243b) and $70.4m (Shs258b) up from $40.8m (Shs149b), $41.9m (Shs153b), $43.7m (Shs160b), $47.9m (Shs175), $47.9m (Shs175b) and $49.7m (Shs182b) respectively.
As to connections, the targets for 2020, 2021, 2022, 2023, 2024 and 2025 are 267, 050 households; 291, 085; 317, 282; 345, 837; 376, 963 and 410, 890 respectively.
The loss trajectory is 15 per cent for 2019, 14.4 per cent (2020), 14 per cent (2021), 13.47 per cent (2022), 13.19 per cent (2023), 12.92 per cent (2024) and 12.78 per cent in 2025.
As of June, 16.7 per cent of the energy dispatched from transmission substations to end-users was being lost either technically or commercially.
The revision follows a submission by Umeme in May to ERA to reconsider the utility’s performance distribution, operation and maintenance costs.
Responding to ERA’s intended modification of Umeme’s license to supply electricity, Umeme’s head for regulatory affairs, Mr Tuzinde Mbaga, said the company is studying ERA’s suggestions.
“We have received the report from the Authority. We will review it within the timelines given by the authority and shall submit any comments after our detailed review, as requested by the authority,” Mr Mbaga said on Friday.
On connections, Umeme is expected to connect at least 245,000 customers to the grid by the end of this year.
The company had as of August 30 connected 130, 000; and it says it is optimistic that it will connect the balance by 31 December now that the national standards bureau is clearing many of its meters for installation on premises.
