Uganda electricity power distributor Umeme has revealed their US$83.3 million (Shs 310 billion) investment plan to increase grid connections and stabilising of reliable power supply services to its customers moments after they received approval from the Electricity Regulatory Authority (ERA).
Selestino Babungi, the Managing Director UMEME released a statement stressing that ERA approved Umeme and also allocated $83.3 million to use in stabilising power in about six critical business areas.
“In 2020, Umeme, secured approval from the Electricity Regulatory Authority (ERA) and has gone ahead to allocate US$83.3 million to six critical areas of the business, which when completed, will see us reliably connect over 300,000 customers this year alone,” read excerpts of Babungi’s statement.
According to Babungi, the six areas includes:-
Addressing energy losses and improve operational efficiency for US$26.89 million;
Addressing load demand growth at a cost of US$22.72 millionImproving power supply reliability at US$18.89 million.
Evacuation and supply of electricity from various generation facilities across the country (US$10.79 million)
Network systems automation (US$1.93 million) andNetwork protection and security (US$2.06 million).
Umeme is investing UGX310 billion towards increasing grid connections,
Increasing demand, bettering the reliability of supply and driving operational and customer service efficiencies.
Babungi illuminated that Shs310 billion that is being invested this year is part of a larger US$450m (Shs1.7 trillion) 2019-2025 investment agenda.
UMEME pledged to align with the government’s Electricity Connections Policy 2018-2027, which targets to increase access to electricity from the current 28 per cent to 60 per cent by 2027 and then 80 per cent by 2040.
The Shs310 billion is a 7.2 per cent increment or Shs21 billion from the Shs289 billion spent in 2019. Cumulatively, Umeme has to date invested over $650 million into the Power distribution network, increasing the number of customers by 1,210,000 from the 290,000 it inherited in 2005 to now over 1,500,000 customers.
Babungi further stated that Umeme reduced power losses from 39.8% as of 2005 to 16.4% as of 2019.
He added that the Shs310b capital investments shall help in boosting new customer connections to about 250,000- 300,000 per annum as well as investing in leveraging technology and business process improvements to reduce power losses and continue delivering more reliable power affordably.
