Connection fees hindering access to power, says govt

KAMPALA.

Sixty per cent of Ugandans wishing to access electricity have shied away because of high connection charges, according to the National Service Delivery Survey (NSDS) 2015 report.

The report released on Friday says 21 per cent of the respondents wishing to have electricity but shied away, blamed poverty while 17 per cent blamed it on high end–user charges.

The report does not indicate the connection charges, but Sunday Monitor is aware the connection charges range between Shs98,000 and Shs2m.

Where one decides to apply for electricity connection, an inspection fee of Shs41, 000 has to be paid first to the electricity distribution company.

There are 10 distribution companies in Uganda although the two main ones by clientele size are Umeme Uganda and Ferdsult Engineering Services.

During an interview before the report was released, Ferdsult’s planning and finance director, Mr Bonny Kizza, had told Sunday Monitor that sparse population settlement patterns increase operational and consequently, connection costs.

“We have to drive long distances [from our office] to go and connect one person. That increases the costs,” Mr Kiiza said.
That aside, Mr Kiiza said it is the Electricity Regulatory Authority (ERA) that determines the connection charges.
“What we do is come up with a list of the materials we will need, which we submit to ERA,” he said.

“If ERA agrees to the cost of the items, it approves it; if it does not agree, it could amend it,” he added.

Asked about the company’s connection fees, Umeme’s media manager Stephen Ilungole said complaints of high charges are unjustified. “The average cost of an electricity pole is Shs800,000. If we had not subsidised it, the complaint about connection fees being high would be justified,” he said.

The Uganda Bureau of Statistics 2016 report indicated that presently, only 20 per cent of Ugandans access electricity and government intends to increase this to 30 per cent by 2020.
In 2014, the government launched the output based aid (OBA) project through which it intended to connect at least 655, 000 rural households to electricity.

The World Bank, Kreditanstalt für Wiederaufbau (KfW) and the government of Uganda, financed the $16.75m (now a Shs56.5b) four-year project.

Under the project, households that had been close to an electricity pole for at least 18 months but could not afford the connection fees could be connected under the OBA.

In case the distribution utility, such as Umeme, or a concessionaire like the Rural Electrification Agency was satisfied with the internal wiring of the household, it would then connect such a customer.

It would then claim for the connection fee from the OBA kitty.
“I call upon stakeholders to utilise the survey findings in generating ways and means of improving service delivery,” the Permanent Secretary ministry of Public Service, Ms Catherine Bitarakwate Musingwiire said at the launch of the report in Kampala.