The concession between UMEME and the government of Uganda (under the Electricity Regulatory Authority) took effect in 2005 when Uganda Electricity Distribution Company Limited leased out its assets. The concession is set to expire in 2025. With a few years left before the contract ends, the parties have partnered to usher in a new financial scheme. The partnership also includes the Uganda Development Bank (UDB) and the Rockefeller Foundation in the implementation of the Hybrid Financing Scheme for No-Pole electricity connections.
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With effect from today, 14th December 2022. UMEME will not charge UGX 720,883 to clients for electricity pole connections. This has been reduced from the current UGX 720,883 to UGX 470,000.
Electricity connection applicants have an option of paying the full UGX 470,000 upfront or a minimum of UGX 200.000 upfront and accessing a credit facility of a maximum of UGX 270,000 availed under the Uganda Development Bank financing scheme. The Uganda Development Bank credit facility at zero interest rate, is recoverable from the customer at a minimum of 15% of every electricity purchase over a period of up to 8 years, with an option of early repayment.
In a press release, UMEME welcomed the financing mechanism as the Government accelerates grid connections at an affordable cost. We encourage our customers to take advantage of the scheme through the submission of their applications using the UMEME App or at any UMEME Service Center.
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