Kampala, Uganda | By Michael Wandati | The Uganda Electricity Board (UEB), established in 1948, was initially tasked with the generation and distribution of electricity throughout the country. At its inception, UEB connected 3,263 customers to the national grid, laying the foundation for Uganda’s power infrastructure.
However, a series of reforms eventually led to the dissolution of UEB, resulting in the creation of three distinct entities: the Uganda Electricity Generation Company Limited (UEGCL), the Uganda Electricity Transmission Company Limited (UETCL), and the Uganda Electricity Distribution Company Limited (UEDCL). These new organizations took over the responsibilities for electricity generation, transmission, and distribution, respectively.
While the Ugandan government retained control of electricity transmission through UETCL, the generation and distribution sectors were privatized. In 2005, Umeme Limited was awarded the distribution concession. Despite inheriting a system with losses reaching 38 percent, Umeme managed to significantly enhance the reliability of electricity supply compared to previous years.
In response to inefficiencies and widespread customer dissatisfaction with traditional billing and revenue collection methods, Umeme introduced the Yaka prepayment metering system in 2011. This system was designed to simplify billing and improve customer convenience.
According to Umeme’s unaudited interim financial results for the six months ending June 30, 2024, the company connected an additional 139,196 customers to the grid, increasing its total customer base to 2.1 million. The financial report also highlighted a profit after tax of Shs 13 billion, mirroring the performance of the previous year.
Despite the initial success of the Yaka system, it has become a source of frustration for many customers. Issues such as the rapid depletion of prepaid units, malfunctioning meters, difficulties in loading Yaka tokens, and delays in replacing faulty meters have transformed what was intended to be a user-friendly solution into an obstacle for those seeking reliable electricity access.
Transition plan for expiring Yaka meters
In January 2024, Ruth Nankabirwa Ssentamu, Uganda’s Minister of Energy and Mineral Development, announced that prepaid meters, commonly known as Yaka meters, would stop functioning by November 24, 2024. These meters, crucial for dispensing electricity to consumers, will require replacement due to their impending expiry.
“To stop dispensing electricity means that the meters will no longer be operational because the system will cease to draw electricity through them,” Minister Nankabirwa clarified. She emphasized that the meters will completely stop working, necessitating the installation of new meters and updated software.
To reassure the public, Minister Nankabirwa assured electricity consumers that the distribution utilities would oversee the transition to the new meters. She emphasized that the process would be handled efficiently to ensure there is no disruption in service. “Don’t worry,” she said, “the distributors will ensure a smooth transition, and you will be issued new meters without any inconvenience.”
Frustration over rapid depletion of Yaka units
Many electricity consumers are expressing growing frustration over the rapid depletion of Yaka tokens, leading some to explore alternative power sources, particularly solar energy.
Charles Mugerwa, an Editorial Designer, voiced his dissatisfaction, questioning Umeme’s practices and suggesting that the recent increase in depletion rates might be linked to the uncertainty surrounding the renewal of their contract.
Mugerwa shared his concerns, stating, “We used to consume between 10 and 15 units each week, but in the last three months, the rate has doubled. How do I justify paying Shs 80,000 for just lights, a fridge, and a kettle when none of us is home during the day? If this continues, consumers might be forced to resort to illegal connections.”
He further warned that the ongoing frustration could lead to a rise in power theft, as desperate consumers might start colluding with electricians to tap electricity at a lower cost. Mugerwa acknowledged that while Umeme had previously improved power supply, recent developments have left many customers feeling let down.
Similarly, Mary Nalumansi, a resident of Lugazi Municipal Council, described her decision to switch to solar power after facing repeated blackouts and unexplained depletion of units.
“I invested Shs 7.5 million in solar, and now we enjoy uninterrupted power. We can iron clothes, blend juice, and keep the fridge running without worrying about loading tokens,” she explained.
Nalumansi expressed relief at no longer needing to pay for Yaka units, adding, “It was a disaster when we would load tokens only to experience two days without power. Now, I just wait for the sun to rise, and I have power.”
Concerns over rising electricity costs and faulty Yaka meters
Former NTV News Anchor Faridah Nakazibwe has raised alarm over the rising cost of electricity, questioning how her household could spend Shs 200,000 on power in just two weeks.
Nakazibwe revealed, “Since March 19, 2024, I’ve spent Shs 1.52 million solely on electricity. How can a small household like mine spend Shs 200,000 on power in just two to three weeks? I’ve had to stop using the washing machine and the electric side of the cooker. The only electronics I use regularly are the flat iron, refrigerator, two television sets, a bottle warmer, a kettle, and the house lighting.”
An employee of a Kampala bank, who preferred to remain anonymous, reported issues with a faulty electricity meter. After noticing that his meter wasn’t functioning properly, he reached out to Umeme, concerned that he might be overcharged. Despite assurances from area electricians that the meter would be replaced, he continues to wait for a resolution.
John Lukwago, a resident of Kiwatule, shared mixed feelings about prepaid Yaka meters. While he acknowledged that they help manage electricity usage, he expressed concern about the recent increase in consumption rates.
“Previously, we used 80 to 85 units of Yaka, but now, with the same appliances, we consume between 95 and 100 units. The question is, is it the meter or have the appliances started consuming more power? It’s just my brother and I at home, and neither of us was around for six days. We use gas and charcoal for cooking, but somehow, our electricity bill has gone up,” he said.
Lukwago also noted that the problem worsens when Yaka units are not purchased in bulk. “If you observe this month, you’ll find that you used 30 more units than usual. You load 20 units, and within 30 minutes, without any appliance on, you’re down to 19 or 18 units. It feels like they’re robbing us,” he lamented.
Many users on X, formerly Twitter, have also voiced their frustrations with the rapid depletion of Yaka units. Naluggwa Babra shared her experience, stating, “Many of us are suffering silently due to inconsistencies with Yaka meters. I called an electrician to check my meter, thinking someone was tapping into my power, but that wasn’t the case.”
Davide Okullu expressed his determination to switch to alternative energy, saying, “I’m buying solar next month. I can’t manage Yaka anymore, and I don’t want to bother Umeme with complaints because they know what’s wrong with that meter.”
Another user, who wished to remain anonymous, detailed their ordeal with a faulty meter: “My meter had a fault, and when I called customer care, I was directed to press three numbers. After that, when I bought Yaka, the meter ran very fast. Shs 20,000 doesn’t last two weeks with just four lights, a kettle, and ironing. Is this what Umeme calls a meter upgrade? I think the new Yaka meters are channeling some power to the ground. It’s not normal.”
Freeman Francis shared his experience with Umeme, explaining, “My Yaka meter had issues, and when I reported it, they took it for repairs. After three weeks, I went to their offices at Tirupati Mall on Gaba Road, only to be told that I needed to pay Shs 270,000 to cover the three weeks I was on direct.”
A similar story was shared by another user, who reported, “Our meter wouldn’t load Yaka. We reported the issue to Umeme, and they took the meter for repairs, putting us on direct in the meantime. After a few months, when we followed up, we were told that we had to pay Shs 1.6 million to be reconnected.”
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Husnah Scarlet also expressed her frustration with her malfunctioning Yaka meter: “My Yaka meter has issues. I can’t load my tokens, and it doesn’t display the remaining units. I have to contact them for a passcode, as if I’m withdrawing money. Some days, they don’t even respond.”
In a particularly troubling incident, Musana Festo recounted, “Before the power went off, my Yaka meter was reading 28 units. Three hours later, when the power came back, it was reading 15.4 units. Is this thuggery or just faulty Yaka meters?”
These growing concerns underscore the need for urgent attention to the issues plaguing the Yaka system, as more consumers consider alternative energy sources to avoid the high costs and frustrations associated with prepaid electricity meters.
Uganda prepares for Umeme’s market exit
The Ugandan government is set to take a significant step in the energy sector as Umeme, the country’s primary electricity distribution company, prepares to exit the market. Irene Bateebe, the Permanent Secretary for the Ministry of Energy and Mineral Development, announced that the government would pay US$215 million to acquire a majority share in Umeme as its 20-year contract approaches expiration in March 2025.
Bateebe elaborated on the government’s strategy, revealing that the Uganda Electricity Distribution Company Limited (UEDCL) plans to invest US$158 million (approximately Shs 587.1 billion) into the distribution system over the next three years. This substantial investment is expected to significantly reduce the final buyout amount payable to Umeme to just US$7.1 million (about Shs 26.3 billion) when the concession concludes.
The impending acquisition marks a pivotal moment for Uganda’s energy sector, with the government aiming to strengthen its control over electricity distribution and ensure a more efficient and affordable service for consumers. However, efforts by The Observer to obtain a comment from Peter Kaujju, the Head of Communications and Marketing at Umeme, were unsuccessful, as he did not respond to calls.
As the transition looms, stakeholders and electricity consumers alike are keenly watching how the government’s acquisition and the subsequent changes in the distribution landscape will impact the future of electricity in Uganda.
