The Uganda Electricity Distribution Company - UEDCL - has cried out over the mounting bills arising from court cases by complainants seeking compensation due to trespass on their land. Joseph Katera, the UEDCL Managing Director says that the estimated liability arising from the court cases amounts to 2.6 billion shillings.
Joseph Katera, the managing Director of the electricity distribution company says that the estimated liability arising from the court cases amounts to 2.6 billion shillings. He said the issue of way leave, which occurs when the power distribution lines pass through private land, remains a major challenge which the company is facing.
Katera said there are very many complainants who have dragged the company to court seeking payment for the land on which the company has located power distribution poles. Katera has asked parliament to amend the present land laws to help protect the company from increasing lawsuits. He explained that the bill in law suits could potentially rise to 259 billion shillings.
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The UEDCL was privatized through a 20 year concession by bringing on board Umeme, a private investor in the electricity distribution and supply business with a view of increasing electricity access among other roles stated by government.
A Lease and Assignment Agreement between UEDCL and Umeme says that Umeme is responsible for maintaining and operating the electricity network owned by the distribution company.