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Government to pay private power distributors to end load shedding

July 14, 2011
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Home Latest Uganda News

Government to pay private power distributors to end load shedding

by Gerald Businge
July 14, 2011
in Latest Uganda News
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The Ministry of Finance is planning to release 30 billion shillings this week to pay private power distributors to deal with rampant electricity load shedding.

The minister of state in-charge of finance Aston Kajara has told MPS on budget committee of parliament his office is in the process of negotiating with private companies to receive part payment as government waits on parliament to approve the balance.

Electricity Company UMEME LTD announced a 12 hour load shedding schedule after private suppliers Agreko, ElectroMax and Jecobson switched thermo power supply for non payments of arrears by the government.

The minister said thermal energy generating companies have agreed to resume generating power despite parliament declaiming for the 2nd time to approve the 92 billion shillings debt owed by government.

The firms had stopped generating power insisting that government should first clear the debt something forced the power distribution company UMEME LTD to announce a 24 hour load shedding.

Energy minister Irene Muloni says she discussed the matter with companies following a directive by parliament on Monday and the companies agreed to supply power out of good will.

Muloni however said the Agreko plant in Jinja is going to be decommissioned because water levels have increased to produce on extra 40 mega watts. She was reporting back to the joint committee on budget and natural resources before which the 92 billion shillings request was tabled.

By Mugisa Isaac Mathias

Tags: Aston KajaraIrene Muloniprivate power distributorsUganda electricity crisisUganda government
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