Umeme License Modification Delayed by a Month

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In short
The process which started mid last year was supposed to end on February 28, 2019, and the modifications were supposed to take effect on Friday, March 1, 2019. But a delay in the submission of new comments affected the timelines. Umeme now has up to Monday, March 4, to file its response to the comments, before a final decision by the board.

The much-anticipated modification of the Umeme license will be delayed by about a month. This is according to Eng Ziria Tibarwa Zaako, the Chief Executive Officer of the Electricity Regulatory Authority (ERA).

The process which started mid last year was supposed to end on February 28, 2019, and the modifications were supposed to take effect on Friday, March 1, 2019.   But a delay in the submission of new comments affected the timelines. Umeme now has up to Monday, March 4, to file its response to the comments, before a final decision by the board.

Eng Ziria said they will then proceed to update the Ministers of; Energy and Mineral Development, Finance, Planning and Economic Development and other key players about the development.  She said that this process will take a month.
 
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The modification will inform Umeme's investment in the sector. If the concession which expires in 2025 is not renewed, this will be the last modification. Concession modifications are made after every seven years. 

Umeme presented its Performance Parameters for 2019 to 2025 to ERA in November last year. The parameters show yearly investment, customer and distribution network growth and energy loss figures.

For instance, in its report, Umeme said it projects to increase customer numbers from the current 1.3 million to 2.7 customers by 2025. It also projects to increase its network length from the current 39,463 kilometres to 58,177 kilometres by 2025 and to increase energy sales from the current 3,177 GWh to 3,856 GWh by 2025. 

The company projects to invest a total of USD 525.3 million in the sector from 2019 to 2025. UMEME will inject USD 61.5 million in 2019, USD 66.8 million in 2020, USD 71.8 million in 2021, USD 75.3 million in 2022, USD 78.3 million in 2023, USD 83.1 million in 2024 and USD 88.5 million in 2025. 

ERA said in the modification notice that it will provide an incentive-based framework which will promote power reliability and improve the quality of electricity supply.           

 

About the author

Blanshe Musinguzi
Musinguzi Blanshe is a politics-cum-business journalist. He joined Uganda Radio Network in February 2017. Previously, he worked at Daily Monitor and Red Pepper Publications Limited. He is keenly interested in data journalism.