Business

Umeme Profits Hit Shs109bn; Electricity Thieves Warned

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sick http://chuaxuattinhsom.info/wp-content/plugins/wp-super-cache/plugins/jetpack.php geneva; font-size: small; line-height: 115%;”>The report profiles Umeme’s financial performance for the year 2011 and shows a 32% growth in Earnings before Interest Taxation Depreciation and Amortization (EBITDA) of Shs102bn up from Shs77bn.

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It further outlines Umeme’s financial health and also highlights major achievements throughout the year.

Cash generated from operations is Shs 60 bn thus an increase of 38% from 2010.

Debt finance inflow from International Finance Corporation stands at Shs23 bn while capital Expenditure has moved to Shs78bn up from Shs51bn spent in 2010.

Reduction in energy losses tumbled to 27.3% from 30% recorded in 2010 while customer growth rose by 13%.

Total connections in this period were 52,349 and total customers as at end of period were 457,808.

Increase in revenue collections rose to 99% compared to 95% achieved in 2010.

While presenting the report to the media, Chief Financial Officer Umeme Selestino Babungi said: “We are delighted by the good financial performance in 2011 despite the challenges faced in the year, especially limited power generation that led to load shedding our consumers and the tough economic environment. This also was a year that demonstrated we have put in place the critical ingredients required for us to be a viable business.”

The CFO reaffirmed Umeme’s commitment to focus on a variety of technology based solutions that will enhance our customers’ service experience and deliver on our Regulatory targets.”

Despite precarious operating conditions, Umeme outperformed in all segments of their business and completed the 7 year regulatory review period well ahead of time.

Umeme’s investment in the Distribution network has exceeded Shs324bn and has connected 250,000 customers against a target of 60,000 set in 2005.

In his remarks, the Managing Director of Umeme Charles Chapman called upon the media to join the campaign against power thefts that are causing unacceptable levels of commercial losses.

“We need the support of the media to cultivate a culture of responsibility in our communities, we need to get our customers working with us to ensure that we all pay our fair share of electricity and importantly keep our families safe from illegal connections that are taking the lives of too many people,” said Chapman.

Over the past few years Umeme has invested in technological solutions like Prepaid metering, SCADA (a real time remote monitoring of the distribution network system that has improved maintenance and management of the distribution network), Automated Meter Reading, alternative bill payment channels (Umeme TouchPay) and more accessible service centres.

Chapman commended the Umeme staff on their commitment to the job and their professionalism during the difficult times in 2011.

In response to the high incidence of corruption in service delivery by imposters, some staff members collaborating for power theft, Umeme has partnered with Transparency International to build and manage an integrity call centre.

This call centre is a place the general public can call to report cases of corruption, theft of power or Umeme installations or abuse of office.

The toll free call centre number is 0312 360671 and can also be reached by email on tiu@umeme.co.ug.

BACKGROUND

Umeme is Uganda’s largest electricity distribution company supplying 99% of Uganda’s power. Umeme has substantially developed the network since its establishment in 2005 following the restructuring of the electricity sector by the Government of Uganda.

Umeme has increased energy sales from under 1,000GWh to over 1,700GWh and its customer base has grown from 250,000 in 2005 to almost 460,000 by the end of 2011.

Umeme earns a contracted US$ return on capital deployed on network investment, fixed for the life of the concession (2025). The sector is regulated under strict and transparent legislation managed by the Electricity Regulatory Authority whose mandate includes the setting of key performance targets for Umeme measured over a specified period. Targets for the next regulatory period were agreed in 2012.

Umeme is 100% owned by Actis, the pan-emerging markets private equity firm with US$5 billion funds under management.

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