Page 14 - EPSI Magazine Issue 8 final 2018.indd
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          we always appeal for government support to sternly      faith in the services you are providing?
          deal with vandalism.
                                                                       I think it is a general problem. Like I say,
              Another challenge is in Energy Losses. We be-       they remember us when the lights are off. Pow-
          lieve that there is still headroom but we need a sup-   er goes and people start loudly wondering what
          portive legislative framework. Like in Kenya if they    is wrong. When your public are quiet then you
          catch you stealing power, 10 years in jail or you pay   know  you are  doing  something  right.  And  as
          1,000,000 KeShs which is about 40,000,000UGX –          UMEME we always go out to our customers and
          straight, no negotiation. But for us if you are caught,   do customer surveys of our commercial custom-
          you pay 20,000UGX and the highest you can pay is        ers, domestic customers and industrial custom-
          1,000,000UGX.                                           ers to understand their concerns so that we can
                                                                  address them. The customers indicated there is
              Another  challenge  we  face,  and  I  think  it  was   an improvement. They ranked us higher at about
          not foreseen, is that as you come to the end of your    65% compared to previous years, but they still
          contract without adequate alignment. If you look at     pointed out some issues still affecting them.
          Uganda now it is at crossroads in terms of  new gen-
          eration capital investments coming on board as the      EPSI: Can you tell us what some of the
          main distributor’s contract is coming to an end. We     issues and concerns raised by the cus-
          have six years to go and there is a mismatch because
          you get long term investment in generation and ac-      tomers are and how you are dealing
          tually transmission but you only have six years to put   with some of them?
          it to full use by Umeme.
                                                                       You know the whole issue of pricing and af-

              Learning  from this Uganda  should really build     fordability of  electricity  has been  on  the cards.
          and get back to the 15 year or 20 year rolling contracts   The Head of State has mentioned it and I know
          with a review on year 10 so that you allow certainty.   the regulator and government, they are working
          This is because now we need a lot of investment to      on how we can reduce the cost of power through
          increase on new generation, to increase access to the   looking at the average generation cost of one
          grid – grid connections and to reduce on energy los-    unit of electricity, but also driving efficiencies
          es. But now you have 6 years and the money you are      and driving uptake of electricity as solutions to
          attracting can be hot or cold. So, there is a mismatch   that.
          between generation capital investments and other
          segments of the electricity sector.                          Another  piece  of  feedback  they  gave  us  is
                                                                  that we should increase on the speed of our ser-
              Lastly, sometimes the operating environment         vice. Yes, we have improved, but it is understand-
          is unnecessarily hostile. As Uganda we need to con-     able. We are in a world of now and so they want
          tinuously work on improving our business environ-       it faster. As the news is breaking, I cannot wait for
          ment; stable policies, stable regulation to ensure that   the newspaper tomorrow when I have Twitter,
          we can attract cheaper long term capital through        WhatsApp and Facebook. It is understandable;
          Foreign Direct Investment (FDI). Any disturbance or     therefore, we must adopt and cope. That may in-
          uncertainty in those and questions are raised by in-    clude using technologies that automate the net-
          vestors. Uganda is ranked well but we need to con-      work to solve the network issues.
          tinuously improve our image to ensure that whoever
          is bringing in their FDI is sure his capital is safe, stable   A third issue they gave us is that they want to
          and solidly protected.                                  have more information about electricity; to un-
                                                                  derstand the product and what they are paying
          EPSI: Your first challenge had to do with               for. We took on this initiative and we are work-
          perception – public perception. People do               ing on it. We believe that as we continue serving
                                                                  them, they will bring us more issues to solve. But
          not have faith in UMEME. What can you say               the general service levels have greatly and tre-
          about this to those people who have little              mendously improved.
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