Public electricity provider Umeme Limited have Monday evening through their lawyer denied receiving the letter from President Yoweri Museveni directing IGG Irene Mulyagonja to investigate the South African company over charging Ugandan power consumers exorbitant fees.
Last Week, Museveni through a letter addressed to Mulyagonja said he was displeased with Umeme for overcharging Ugandans and having the highest cost of power in the region, while even exporting some to neighboring countries like Rwanda and Kenya.
Through their lawyers Shonubi, Musoke and Co. Advocates, Umeme said their concession as the sole power supplier was in still in force till 2025 when it would come up for renewal.
In recent years, Umeme has been faulted for among others faulty Yaka metres, failing to grow consumer base, increased load shedding and the overpriced rates to consumers.
Below is the statement from Umeme
Umeme Limited (“the Company”) informs shareholders and the general public that as a public Company with dual listing on the Uganda Securities Exchange and Nairobi Securities Exchange, in accordance with disclosure requirements under the Uganda Securities Exchange (USE) Listing Rules, 2003 (as Amended) and The Capital Markets (Securities) (Public Offers, Listing and Disclosures) Regulation, 2002 of Kenya, the Company is obligated to disclose information about or comment on any circumstance or event likely to have a material effect on its financials or which might reasonably be expected to have a material effect on market activity in the prices of its securities.
The Company has become aware of recent communication and comments on Social Media where statements regarding the Umeme Concession were made.
The Company is not a recipient of the said letter. Nevertheless, in accordance with the provisions of the Regulations cited above, the Company would like to inform its shareholders and the general public that:
- Umeme is operating a 20 year Concession to distribute and supply electricity, until 1st March 2025 and confirms that it has seven (7) years left under the existing Concession.
- The Company commenced engagement with the Government of Uganda on the extension of the Concession period. This process is ongoing and further comment on the same is premature at this point. The Company shall provide timely updates as required under its continuing listing obligations.
- The Company is committed to working with the Government of Uganda, all key stakeholders and development partners to ensure development and improvement of the electricity distribution infrastructure, increase access to grid electricity, further reduction in energy losses and drive towards reduction in tariffs.