A man loads Yaka tokens. The first electricity purchase in a month comes with 15 lifeline units charged at a discounted cost of Shs250 each. PHOTO/MICHAEL KAKUMIRIZI
For many pay-as-you-go electricity consumers, buying Yaka units has become a routine activity, often accompanied by misconceptions. Social media is flooded with complaints from users who report discrepancies in the number of units they receive.
One frustrated customer stated, “I bought for Shs10,000, and they gave me 3.8 units,” while another commented, “It is better to buy at the end of the month. I got 18 units for the same amount.”
These comments reflect widespread misunderstandings about Uganda’s Yaka system, particularly regarding when to make payments and how units are calculated. So, what’s the real story?
When should you buy Yaka units?
There is no ideal or non-ideal time to purchase Yaka units. Whether you pay at the beginning or end of the month, the timing doesn’t affect the number of units you receive, provided it's your first purchase that month. According to Julius Wandera, Director of Corporate and Consumer Affairs at the Electricity Regulatory Authority (ERA), "Your entitlement to units remains unchanged whether you buy on the first or last day of the month."
As long as you qualify for the lifeline tariff category, you will receive the 15 discounted lifeline units on your first purchase of the month. Additional purchases during the same month will be charged at the standard domestic rate without the lifeline discount.
How Yaka payments are processed
Understanding how Yaka payments are processed can help clarify these misconceptions. When you make a payment, 18% Value Added Tax (VAT) is deducted first. Next, a monthly service fee of Shs3,360 is subtracted to cover system maintenance costs. The remaining balance is then used to purchase electricity units.
After the initial 15 lifeline units are consumed, additional units (from the 16th to the 79th) are charged at the standard domestic tariff. Interestingly, if your consumption exceeds 79 units in a month, you qualify for the lower cooking tariff of Shs412 per unit, applicable to units from the 80th to 150th unit.
Practical example
Let’s break it down with an example. Suppose you are making your first Yaka purchase of the month for Shs30,000. Here’s how your payment is processed:
• VAT (18%): Shs5,576 is deducted, leaving you with Shs24,424.
• Service Fee: Shs3,360 is subtracted, leaving Shs22,064 for unit purchases.
• First 15 Lifeline Units: Charged at Shs250 per unit, costing Shs3,750, leaving Shs18,314.
• Standard Units: With the remaining balance of Shs18,314, you will buy approximately 23 units at the domestic rate of Shs796.4 per unit.
In total, you’ll receive 38 units: 15 lifeline units at a lower rate and 23 units at the standard domestic tariff.
Understanding the Lifeline Customer Classification
To qualify for lifeline units, your average monthly consumption over the past six months must be less than 100 units. Approximately 92% of Yaka customers fall into this category, according to Mr. Wandera. If your consumption exceeds 100 units, you won’t receive the lifeline discount and will be charged the standard rate from the start.
If you make additional payments in the same month, you’ll still pay VAT, but the service fee of Shs3,360 is charged only once per month. However, you won’t receive the lifeline units again, as they are only applied to your first purchase of the month.
Causes of unit variations
Several factors can cause variations in the number of units customers receive. If you buy units that last several months, your monthly service fees accumulate and are deducted the next time you top up, reducing the amount available for purchasing units. Additionally, after your first purchase of the month, all subsequent purchases are charged at the standard domestic rate.
ERA reviews electricity tariffs quarterly, so slight changes in prices may occur if you buy units in different months.
To ensure consumers are treated fairly and that subsidized units are applied appropriately, ERA monitors the electricity billing systems of various distribution companies. This oversight guarantees that all Ugandan electricity consumers are treated equitably and are informed about any changes in tariffs.
Innovations in the Yaka system
To address consumer concerns, Umeme is continuously improving the Yaka system. One of the most recent initiatives is the rollout of a new Utility Customer Information System (UCIS), designed to accommodate up to four million customers. According to Peter Kaujju, Umeme’s Head of Communications, the new system will offer a smoother experience for consumers by automating transactions and phasing out manual cash offices.
“We have automated all our transactions,” Kaujju explains, “making the system faster, safer, and more convenient for our customers.”
With the new system, Umeme aims to centralize all its processes, allowing customers to transact seamlessly from anywhere.
The bottom line
The timing of your Yaka purchases does not affect your entitlement to lifeline units. The key factor is that your first transaction of the month qualifies for the 15 subsidized units if you fall in the lifeline category. Factors like accumulated service fees, quarterly tariff adjustments, and subsequent purchases can impact how many units you receive.
Umeme’s ongoing efforts to innovate and streamline the Yaka system are steps toward providing consumers with a more reliable and transparent service.
