Kyegegwa Rural Electricity Cooperative Society Ltd (KRECS) on Tuesday, April 30, 2024 handed over the Central Service Territory (CST) to Uganda Electricity Distribution Company Limited (UEDCL), a parastatal company whose primary purpose is to distribute electric power to domestic and commercial end-users in Uganda.
KRECS has been serving the districts of Kyegegwa, Mityana , Mubende, Kyenjojo , some parts of Luwero, Nakasongola, Kasanda, and sections of Buikwe for ten years until the concession runs out.
Speaking during the handover Mr Edward Iruura, the acting Chief executive officer at Electricity Regulatory Authority (ERA) said UEDCL’s take over from KRECS is as a result of government policy decision not to renew private distribution company licenses upon expiry.
‘’The Decision is part of a broader strategy for the second phase power sector reform initiatives to improve the efficiency of the industry and ERA is committed to ensuring a smooth transition for the CST’’, said Iruura.
Iruura commended UEDCL and KRECS for their commitment to providing Ugandans with reliable electricity and that with the former’s experience and resources , they will seemingly take over operations and maintenance to ensure that the standards established by KRECS is sustained .
‘’Since being awarded the license in 2014, KRECS has continuously worked as to sustainably achieve its license terms and conditions. Therefore, this handover ensures uninterrupted electricity supply for all consumers within the CST’’, Iruura further noted.
Eng.Protaze Tibyakinura, the Chief Engineering & Technical service officer at UEDCL said the company is determined to improve the reliability and the capacity of electricity supply in Uganda, together with several partners that are executing several projects aimed at boosting quality and reliability of supply.
He added that reliable Electricity Supply is a major trigger for Socio-Economic Transformation and development which takes a lot of capital investment to provide adequate network infrastructure, improved responsiveness of Electricity Companies and timely reporting by Electricity Consumers, therefore challenges like vandalism should be fought by stakeholders.
Eng.Odoa Jimmy, the principal energy officer who represented the commissioner for rural electrification department commended for being a Reliable, Customer-Focused And Safety-Oriented National Electricity Distributor, which enable KRECS to run the ten year supply business smoothly.
Dr Patricia Litho the Assistant Commissioner for Communication and Information Management at the Ministry of Energy and Mineral development said government decided to take over the power distribution business itself, a move it says will lower consumer tariffs and enable efficiency.
During the handover ceremony, the KRECS General Manager Mr Charles Matovu commended the Government through the ministry of energy and mineral development for the opportunity to be offered a ten year lease that has come to an end.
‘’I thank the regulator (ERA) for the business operation license and UETCL for accepting to sale them energy. We are ready to work with the new operator. The network was 99% in a sound state beside a few areas with vandalized cables and faulty transformers. The network growth from 155KMs of HT in 2013 to over 1,350Kms of HT and over 1031Kms of LV was because of the government support ‘’, said Matovu adding that several (over 102) potential areas for grid extension and intensification already submitted to the Ministry.
He added that over 13,450 customers have been mobilized and connected on the national grid with over 3,400 inspected and awaiting connection alongside 1091 potential customers who need or applied for a one pole service connection.
‘We have a supportive network and non network assets that KRECS acquired as donations from the Ministry, contractors and through the tariff that has been instrumental in business operation including a pick up single cabin vehicle, motorcycles, computers, GPS machines, office chairs, tables and cabins, the vending system sitting and hosted at UEDCL Tower etc and are available for handover, although some are in obsolete state as they have served beyond their useful life’’.
KRECS had employed 71 staff to support and manage her business operation and UEDCL retained 46.
According to officials, KRECS has been able to meet most of her financial obligations with Ministry for the lease fees, ERA for the license fees and UNTIL for the energy fees and a few balances are awaiting some reconciliation that KRECS is ready to clear.
Matovu requested the Ministry to also pay for the outstanding connections made under different projects and the capital investment made to keep the network sound as well as customer service up.
‘’Some of the challenges we have had include among others; vandalism of network equipment and assets, power theft, outages on some networks like the one of Buikwe and Luwero, rotting poles and non functioning switch gear. I request to have them addressed for better customer service. At Katiirwe mini grid, ERA had offered an operation license to KRECS to operate the generation and distribution system at Katiirwe hybrid solar mini grid where about 180 customers are connected and enjoying the service. KRECS will and very ready to continue operating in the off grid space among other possible services it can offer’’, Matove further noted.
He also requested a close partnership and collaboration with UEDCL on possible areas of service like on the upcoming 1 million connections under EASP, line maintenance, customer surveys, Productive use of energy (PUE) campaign among others.
KRECS Board Chairperson promised to support UEDCL to get accustomed by the local population as they were used of KRECS and asked taking up more staff of KRECS if opportunities are available to avoid unemployment.