Kitutu says the other companies involved in upstream level activities like generation and transmission should not take advantage of the public ignorance which leaves distributors like Umeme as the visible culprits.
The Minister for Energy and Mineral Development Goretti Kitutu has
asked companies involved in the electricity sector to work reduce the cost of
power.
The minister notes that the tariffs have remained high because the costs of
doing business were high which made it hard for either the individual companies
or the government to set lower prices.
Uganda has one of the highest tariff regimes for national grid
electricity in the region, despite having abundant resources like rivers for hydro power, wind, solar and geothermal, all of which are yet to be exploited
fully.
The high cost, which in turn is transferred to the final consumer,
is largely attributed to the cost of financing that the sector acquires for
investing in the projects. Others include the cost of inputs like heavy
fuel oil, the ageing equipment especially at the distribution level that needs
constant repairs, among others.
Speaking at the launch of the Energy Generators and Distributors Association of
Uganda (EGADAU), Kitutu said the government has done enough of recent in
availing the sector with special financing packages, including the Energy
Credit Capitalization Company as well as the capitalizing of the Uganda
Development Bank.
Kitutu says the other companies involved in upstream level activities like
generation and transmission should not take advantage of the public ignorance
which leaves distributors like Umeme as the visible culprits.
//Cue in: so we are trying to avail …
Cue out: … that will be handled.”//
Government buys electricity from the generators at costs as high as 18 US Cents
and households buy it at about US Cents 19 or 672 Shillings and the government
says the ultimate aim is to reduce the cost to as low as 5 cents.
The energy companies say they started an umbrella body that will bring all of
them together for the greater good.
The association will promote best practice and develop sector relevant
technical skills by supporting initiatives of the regulator and develop
industry best practice with a view of developing a culture of compliance and
clear practice guidelines.
The association currently has 13 founding partner members and is
expected to bring together the more than 40 energy players in the electricity
sector.
Thozama Gangi, the Managing Director Eskom Uganda and also the interim
chairperson of EGADAU says the idea to form an association was mooted in 2013
but frequent changes at the different organisation have always failed its take-off.
Umeme Managing Director, Celestino Babungi, said the coming
together of the sector players will create a better working environment and
help them deliver to the public expectations.
