Established in 1948, the Uganda Electricity Board (UEB) was the government-owned utility responsible for generating and distributing electricity across Uganda.
At its inception, UEB connected 3,263 customers to the national grid. Over time, a series of reforms led to the disbandment of UEB, resulting in the creation of three separate entities: the Uganda Electricity Generation Company Limited (UEGCL), the Uganda Electricity Transmission Company Limited (UETCL), and the Uganda Electricity Distribution Company Limited (UEDCL). These entities took over the responsibilities of electricity generation, transmission and distribution, respectively.
While the government retained control over electricity transmission through UETCL, the generation and distribution concessions were awarded to private companies. In 2005, Umeme Limited secured the distribution concession. Despite inheriting a system plagued by losses as high as 38 percent, Umeme significantly improved the reliability of power supply compared to previous years.
In 2011, recognizing the inefficiencies and customer dissatisfaction with the traditional billing and revenue collection processes, Umeme introduced the Yaka prepayment metering system. This innovation aimed to simplify the billing process and enhance customer convenience.
According to Umeme’s unaudited interim financial results for the six months ending June 30, 2024, the company connected 139,196 new customers to the grid, bringing its total customer base to 2.1 million. The financials also reported a profit after tax of Shs 13 billion, consistent with the previous year’s performance.
Despite the initial success of the Yaka system, it has become a point of contention for many customers. Users have expressed frustration over the rapid depletion of prepaid units, faulty meters, difficulties in loading Yaka tokens, and delays by the company in replacing defective meters. These issues have turned what was meant to be a convenient solution into a barrier for customers seeking reliable access to electricity.
EXPIRY OF YAKA METERS
In January 2024, Ruth Nankabirwa Ssentamu, the minister of Energy and Mineral Development, announced that by November 24, 2024, prepaid meters, commonly known as Yaka meters, would cease to dispense electricity.
“To stop dispensing electricity means that they will not be working because we pull electricity through the system to disperse,” she explained. “They are not saying they will stop dispensing; what they mean is that these meters will stop working, and so they will need new meters and software.”
Minister Nankabirwa reassured electricity consumers that the distribution utilities would facilitate the migration to new meters. “Don’t worry, the distributors will make sure that there is no disturbance, and you will be issued new meters,” she added, emphasizing that the transition would be managed smoothly to avoid any inconvenience to users.
DEPLETION RATE OF YAKA UNITS
Many users interviewed by The Observer expressed frustration over the rapid depletion of Yaka tokens, with some even turning to alternative power sources, particularly solar energy Charles Mugerwa, an editorial designer, voiced his concerns, stating, “Umeme is proving to be thugs; is it because the government didn’t renew their contract?”
He continued, “We used to consume between 10 and 15 units every week, but in the last three months, the depletion rate has doubled. How do I pay Shs 80,000 for lights, a fridge, and a kettle when none of us stays home during the day? Something must be done, or else consumers will resort to stealing power.”
Mugerwa warned that frustrated electricity consumers might start colluding with electricians responsible for certain areas to tap and distribute power at a lower cost. “We have been patient with that company; they performed well in improving power supply, but now they are running to the dogs,” he added.
Similarly, Mary Nalumansi, a resident of Lugazi Municipal Council, shared her experience, stating, “Following the hiccups, blackouts and mysterious depletion of units, I resorted to using solar. I invested Shs 7.5 million in solar. Now, we happily iron our clothes, blend our juice, and use the fridge like there is no tomorrow.”
She emphasized her relief at not having to pay for electricity units, saying, “I am comfortable knowing I won’t need to load tokens. I’ll wait for the sun to rise, and the system will give me power. Initially, we would load Yaka tokens and spend two days without power; it was a disaster.”
CONCERNS OVER RISING ELECTRICITY COSTS
Former NTV news anchor Faridah Nakazibwe has raised concerns about the escalating cost of electricity, questioning how her household could spend Shs 200,000 on power in just two weeks.
“I have spent exactly Shs 1.52 million since March 19, 2024, on power alone,” Nakazibwe shared. “How is it possible that my small household spends Shs 200,000 on power for two to three weeks? I was forced to give up 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, bottle warmer, kettle and lighting inside the house.”
An employee of a bank in Kampala, who requested anonymity, highlighted issues with a faulty meter on his electricity pole. After noticing that his meter was not moving, he contacted Umeme, fearing he might be overcharged. “The electricians in charge of the area pledged to replace the meter. I went back and forth, got references, and I am still waiting for them,” he said.
John Lukwago, a resident of Kiwatule, expressed mixed feelings about prepaid meters. While he acknowledged that they help limit electricity usage, he is concerned about the increasing rate of consumption in the past three months.
“In the recent past, we would use 80 to 85 units of Yaka, but now we consume between 95 and 100 units with the same electric appliances. The question is, is it the meter, or have the appliances started consuming more power? We are two people at home, my brother and I, and neither of us was home for six days. We use gas and charcoal to prepare our meals, but man, they are cheating us,” he said.
Lukwago also noted that the problem worsens if Yaka is not purchased in bulk. “Observe it this month; you will find that you used 30 units north of your monthly units. You load 20 units, and within 30 minutes, without any electric appliance on, you will find that you have 19 or 18 units. It is a shame that they are robbing us,” he lamented.
A sample of users on X, formerly Twitter, voiced their frustrations over the rapid depletion of power units on Yaka meters. Naluggwa Babra shared her concerns, stating, “Many of us are suffering silently because of inconsistencies in Yaka meters. I called an electrician to check my meter, thinking someone was tapping into my power, but it wasn’t the case.”
Davide Okullu expressed his resolve to switch to alternative energy, saying, “I am buying solar next month. I can’t manage Yaka anymore, and I don’t want to bother UMEME with complaints because they know what they’ve done with that meter.”
Another user, who preferred anonymity, detailed their ordeal: “My meter had a fault. I called customer care, and I was directed to press three numbers. After that, when I bought Yaka, my meter ran very fast. Shs 20,000 can’t last for two weeks with just four lights, a water kettle, and ironing. Is this what UMEME referred to as a meter upgrade? I think the new Yaka meters have a way of channeling some power to the ground. It is not normal.”
Freeman Francis recounted his experience with Umeme, saying, “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.”
Another user shared a similar story, stating, “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.”
Husnah Scarlet expressed her frustration with the malfunctioning of her 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.”
Musana Festo shared a peculiar incident, stating, “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?”
UMEME’S EXIT FROM THE UGANDAN MARKET
Last year, 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 the company’s 20- year contract nears its expiration in March 2025.
Bateebe explained that the Uganda Electricity Distribution Company Limited (UEDCL) has plans to invest US$158 million (approximately Shs 587.1 billion) into the distribution system over the next three years. This investment would significantly reduce the final buyout amount payable to Umeme to US$7.1 million (about Shs 26.3 billion) when the concession concludes.
Efforts to obtain a comment from Peter Kaujju, the Head of Communications and Marketing at Umeme, were unsuccessful, as he did not respond to calls from The Observer.
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