In Uganda, Umeme is proposing a modification of the electricity connection policy in order to allow populations with the means to pay their connection costs in one go. The objective is to support the government which was struggling to finance the old policy.
In Uganda, Umeme, the country’s main electricity distributor, has proposed a review of the Electricity Connection Policy (ECP) implemented by the government. The latter no longer has the means to finance this policy, which allows populations to gradually pay for their connection.
“The original policy we are proposing to revise does not put in place a safety valve saying ‘if you can afford to pay don’t wait’. There is a way to put this in place so that those who have the capacity, and there are many of them, do not wait for the government, but pay at the same time, ” said Selestino Babungi, executive director of Umeme. .
In 2018, the government implemented the Last Mile Connectivity grant program to connect 300,000 consumers to the national electricity grid each year. According to the program, citizens pay only 20,000 Ugandan shillings on connection fees which range between 98,000 and 2 million shillings. The balance is covered by the government.
The cost of the initiative estimated at $ 700 million is expected to be funded by the government with the support of international donors. But according to the authorities, only $ 80 million has been mobilized from donors and the government currently owes $ 25 million for the connections made.
Source: Agence Ecofin