The MPs on the committee chaired by Bungokho south MP Michael Werikhe are concerned that the company is robbing the country of huge sums of money in compensation by government.

According to MPs, government compensates UMEME money to a tune of shs1bn for every single unit loss of energy recorded, an action MPs describe as broad day theft.

MPs say that  while a consultant- PB of South Africa was contracted by government to study energy distribution losses and collection rates made by UMEME limited, the company declined to give information on the losses it makes fearing to lose the deal.

This after Rwampara MP Vicent Kyamadidi informed the committee that it was on record  by government  that much as the survey was complete, the establishment of the level of losses which the survey by the consultant- PB aimed at had been hampered by UMEME’s failure to disclose  information to the effect.

The committee is now demanding that UMEME produces to it documented losses the company makes so as to ascertain how much money UMEME is getting on top of cheating Ugandans.

By Isaac Senabulya

The post Parliament unhappy about UMEME compensation fees first appeared on Uganda Multimedia News & Information.

The committee on Natural Resources made the decision following a meeting with officials from the Energy ministry over the tariffs.

The committee chairman, Michael Werikhe revealed that the MPs had resolved to summon the companies following public outcry over the high charges of electricity.

Some of the companies and agencies to be appear before the committee is UMEME, the Electricity Regulatory Authority and the Electricity Distribution and Transmission companies.

Werikhe says the MPs want to establish the actual cost of electricity and also ensure that the ordinary Ugandan does not feel cheated.

The country is currently facing load shedding following an announcement by UMEME due to lack of fuel supply at the thermal power plants.

Ultimate Media

The post Electricity bodies summoned to explained high power prices first appeared on Uganda Multimedia News & Information.

The ministry of finance energy last week requested parliament to approve a supplementary budget of 62 billion shillings to enable the ministry of energy pay the thermo power suppliers.

However the budget was rejected by MPs on grounds that parliament had not received accountability for the 92 billion shillings which they approved in April for the same purpose.

The matter was referred to the committee of budget and natural resources. One of the members on this committee also mp for Rwampara Vincent Mujuni Kyamadidi says they need the minister to first explain why there is load shedding yet the money which was approved could run the power supply companies up to September this year.

Uganda is currently facing an acute power crisis which economic experts are worried will slow down the country’s economic growth.

By Isaac Senabulya

The post Energy minister to appear before parliament over load shedding first appeared on Uganda Multimedia News & Information.

 Umeme, the concessionaire of Uganda Electricity Distribution Company said today that the Uganda Electricity Transmission Company has announced a shortfall of 50MW (mega watts) during day and 120MW during night which will result in both day long and night long load shedding.

Electric power connection

In a statement, Umeme said different areas will experience load shedding from 6am-6p (day) or 6pm- 6am (night) as the power distributor tries to ration the available power.

The company says such load shedding is expected to take place not more than once every four days of the week.

With many local small and big business crying foul about the unprecedented increase in prices of goods and services resulting from a high inflation and poor performance of the Uganda shilling against the US dollar, the power outages are likely to bring many businesses to their knees.

And as businesses without alternative electricity option will suffer, this will no doubt also affect the local customers who might get less products or services and have to pay even more due to scarcity of some products and or services.

With an inflation of more than 14%, and the US dollar trading at more than 2,700 Uganda shillings, many people and businesses are feeling the pinch of an unstable economy and traders in Kampala have already promised to strike on Wednesday and Thursday if the government does not intervene.

It has emerged that Power producer Aggreko switched off 50megawatts based at Kiira, in Jinja while Electro-maxx Ltd switched off 22 megawatts based in Tororo District. Jacobsen Ltd is expected to shut down its 50-mw plant in Namanve on Wednesday, drastically cutting electricity supply to the national grid.

UETCL CEO, Erias Kiyemba has confirmed that the Independent Power Producers (IPPs), cut off supply to government due to non-payment of arrears of March to June 2011 totalling to about 200 billion Uganda shillings.

Such a turn of events will have many wishing that the government can quickly finalize the Bujagali power project that is expected to generate 220MW later next year.

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The post Uganda braces for 12 hour day long and night long electricity load shedding first appeared on Uganda Multimedia News & Information.