Parliament wants government to cancel UMEME contract

Members of Parliament are demanding government to cancel the concession agreement made with UMEME and take on the supply of electricity to solve the problems of high tariffs and load-shedding.

Lawmakers on the Parliamentary Committee on Natural Resources including Hanifa kawoya and Getrude Nankabirwa say UMEME connived with government officials in the ministry of privatization and that government is paying billion of shillings in compensating for losses.

But the Energy Minister Eng Irene Muloni says government will only identify the failures of UMEME saying it would be expensive for Ugandans to pay costs of canceling the contract

Muloni was today appearing before the Natural Resources committee of Parliament to defend the 2011/12 budget estimates.

There has been a long time outcry from the public, politicians and manufacturers of the high cost of electricity in Uganda.

President Yoweri Museveni has also gone ahead to direct the ministry of Energy to implement the Salim Saleh report that recommended that UMEME reduces the power tariffs, which are so exorbitant.

The Government signed a 20 year concession agreement with UMEME to distribute electricity that is generated and transmitted by two other government companies.

MPs say government should re-nationalize the supply of electricity as the only way of solving the problems of power tariffs and load-shedding.

By Isaac Senabulya

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