East African Business Week

KAMPALA, UGANDA --Uganda's Minister for Energy Irene Muloni has said financial resources will be found to pay the Ush200 billion in arrears government owes the three thermal power generators.
She also said government will further subsidize the thermal generators until the 50MW of the Bujagali power plant is commissioned at the end of October.   
Uganda faces power cuts lasting 12 hours daily due to government's failure to pay power subsidies amounting to Ush200 billion (US$76.9 million).
Uganda Electricity Transmission Company Limited (UETCL), the power transmitter early in the week notified Umeme, the distributor of a generation shortfall, which has led to the 12-hour load-shedding.
UETCL has attributed the shortfall to "commercial predicaments", which have led to the shutdown of the Aggreko-Kira thermal plant. In addition electromaxx-Tororo has also been shutdown forcing Umeme to announce a 12-hour evening load-shedding schedule every other day for many places.
Power transmitter Uganda Electricity Transmission Company Limited (UETCL) is demanding Ush200 billion in unpaid government power subsidy arrears that have accumulated over the last five months.
Government is supposed to pay a fraction of the cost of producing thermal power by private power producers like Aggreko, Electromaxx and Jacobsen Limited.
According to information from the electricity sector, the generation shortfall has shot to 50MW during the day and from 70MW to 120MW at night time.
"This shortfall means that the amount of electricity that Umeme receives for distribution is greatly reduced thus prompting emergency load shedding to regulate the distribution of power," said, Mr. Sam Zimbe, Umeme's General Manager.
The load shedding is expected to affect several areas around the country. During the day load shedding will be from 6:00 am to 6:00 pm and from 6:00 pm to 6:00 am in the evening.
"We regret any inconveniences caused and ask our customers to bear with us as UETCL sorts out the problem," Zimbe said.
He added that they will put into consideration areas that have many industries, medical establishments, security sensitive areas, commercial establishments and the city centre as they carry out the emergency load shedding.