The parliament of Uganda has agreed to set up a select committee to investigate operations of the national energy sector.

The committee whose members are yet to be named will among others investigate the funding of the thermal power generation project.

Kampala Central MP Muhammad Nsereko tabled before Parliament the motion seeking parliamentary approval to probe the energy sector.

Electric power connection

He told fellow legislators that the underhand dealings in the energy sector require a comprehensive probe by a committee of Parliament.

With support from MPs Katooto Hatwib, Cerenah Nebandah and Opposition Chief Whip Winnie Kiiza, the legislator highlighted the need for proper accountability on funds spent by government on subsidies to the energy sector.

In April 2011, Parliament approved 92 billion Uganda shillings as supplementary expenditure for the energy sector.

MPs are enraged by the current power rates and the rampant load shedding that has grossly affected the economy.

The probe follows a standoff between Parliament and the joint Finance and Energy Ministries over a 61 billion shillings subsidy for the thermal power subsidy.

The funds earlier blocked on the floor of Parliament have been blocked by the Parliament joint committees on budget and natural resources.

A report of the Parliament Budget committee noted that the funds would enable government partially offset outstanding arrears amounting to 207 billion Uganda shillings.

Tim Lwanga the chairperson of the budget Committee told Parliament that it would be irregular for Parliament to approve the expenditure of 61billion Uganda shillings over and above the funds provided for in the ministry budget.

State Minister for Finance Aston Kajara told Parliament that government requires 455 billion Uganda shillings to offset the total power subsidy for the 2011/2012 financial year.

The funds he said are urgently required  to subsidize thermal power generation until Bujagali hydro electricity power plant whose operations have been  pushed to October 2011 becomes operational

By Isaac Senabulya