Parliament has passed the Electricity Amendment Bill, 2022, which among others, permits generation and transmission licensees to supply electricity in bulk directly to categories of customers specified by the minister.
The decision by Parliament, which now awaits assent by President Museveni, ends decades of Umeme’s monopoly as the sole bulk power supplier.
The report by the Natural Resources Committee notes that this action would of necessity eliminate Umeme in service territories where it is not licensed and in effect implement the presidential directive on selling power to industries at a tariff that eliminates the expensive distribution costs of Umeme.
Emely Kugonza, the Committee deputy chairperson, said the elimination of a monopoly in power distribution will help in cutting down the cost to the final consumer.
The Act has set five cents as the unit cost for industries.
To reduce the power tariffs for domestic consumers, the proposed law has recommended a reduction in the Value Added Tax from 18 per cent to 10 percent.
Cause 19 of the Act also introduces hefty penalties for vandalism of electricity infrastructure, as well as power theft.
Parliament set a prison sentence for both offences at 15 years, or a fine of Shs1b or both for those convicted of the offences.
