Umeme to end the subcontractors’ bad attitude
The power distribution company Umeme has lately come under widespread criticism over a range of issues – from its treatment of customers to billing and payment platforms. You can read The Observer's Alon Mwesigwa intervju with Umeme Head of Communications Henry Rugamba below.
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Interview with Henry Rugamba – Umeme’s Head of Communications
The power distribution company Umeme has lately come under widespread criticism over a range of issues – from its treatment of customers to billing and payment platforms.
You can read The Observer’s Alon Mwesigwa interview with Umeme’s Head of Communications Henry Rugamba below.
Why are you forcing people to install pre-paid metres (Yaka), which should be optional?
I wouldn’t say forcing is the fair word to use. We began the Yaka programme in 2011 as a pilot. Under that pilot scheme, [we are] rolling it into the other parts of Kampala.
Yaka gives a customer full control of their consumption, and some who had Yaka installed in the early 2011, and even recently, will tell you that they have experienced better management of their bills.
They appreciated the fact that they haven’t experienced a guy visiting them, bringing them a bill or reading their metre and somebody disconnecting them.
When you say some people have complained, I can also confirm that many appreciate the upgrade to this technology.
However, when we fit in pre-paid meters in an area, we compel people to install because we want to be able to manage the area and clearly say we have finished upgrading it.
If you live in a post-paid area, you receive three visits a month which I think is inconvenient. In the areas we have fitted pre-paid meters in, we don’t have to visit you at all.
It’s a question of embracing technology.
Who is supposed or not supposed to install Yaka? It seems you are dictating to whoever you meet.
If you think about it or remember the budget speech of the Minister of finance, she said: “We have set Umeme with a target of 15,000 pre-paid metres to be installed. But we have hit 42,000. We are [not] dictating to the public. It’s a whole strategy for better power consumption.
This brings me to the legal question: the grid code which we are governed by, presupposes post-paid electricity supply, but it does also say that electricity consumers can use a metre provided by the supplier. It does not specify pre-paid or post-paid. However, as we plan to go national, by 2018, the appropriate legal framework will be in place.
How long does it take you to syncronise your mobile money platform with the customer’s account?
Twenty-four hours and we are working to bring that down. What currently happens when you pay by mobile money is you get a text message notification with a reference number and the payment confirmation.
Our system needs to improve in the event of the payment at 4 p.m. while you may have received your notification, it may not update on our system until the following day. Despite you receiving a confirmation, your local office may send out warning letters for debts and our representatives may visit you. If you tell them you paid, you may not be on the list [after 24hrs] as our system could have registered your payment.
The delay is about the challenges of adopting technology and we will get over it.
How much control do you have over your sub-contractors – given the arrogance, corruption, and the ‘I don’t care’ attitude they approach your customers with?
We don’t deal with it well enough and we have to do a lot more. On the 8th November, we are issuing a new code of conduct which they will have to abide by. It will dictate our minimum standards of conduct.
There are so many frustrating instances of the sub-contractors treating the customers badly and then denying it. We will provide the new code of conduct to the public so they can confront them and prevent their ability to intimidate and mistreat the customers. Corruption and misconduct are totally unacceptable. We have to deal with it.
Some people have complained that you give them inflated bills…
Once again, this is what makes yaka exciting. In the post-paid arrangement, we never remember everything we have done or how we used our equipment over the past month. One month, you may iron your clothes and put them away in the wardrobe; another month, you may iron your clothes every morning when you go to work.
There are many elements you may not remember in thirty days. This is why we seek public enthusiasm to embrace pre-paid metres. It gives people control in terms of how much power they use.
And what should customers do when they receive their bills late?
Customers with access to the Internet can register for an e-bill. You will always get your bill in time. And we will only give it to you when you ask for it.
Stories of a transformer blowing up aren’t strange of late. But how long does it take for you to fix one?
The most frequent cause of transformers failure is the system overload. And overload is brought on by power thefts. We find that in an area where we registered 50 users, 150 users appear during the night. The transformer in that area may [only have capacity to serve] a small number of users.
You might get lucky if only a transformer blows up in your area as you might get it done immediately or within eight hours. Sometimes we get multiple high-level transformers blowing up at the same time and it’s first come first serve basis. If we don’t have any in stock, it may take time to install.
Each new transformer costs $10,000 [Shs 26m]. There is a lot of vandalism – people taking oil out of the transformers, making others suffer the consequences. But remember that we are in the business of selling [power] and it is not in our interest to keep you off the grid. If we keep you off, then you will give your money to the fuel companies.
Everyone seems unhappy. Has Umeme achieved anything this year?
[A key achievement] is a continuous improvement – building one thing to another. We closed last year with our IPO [initial public offering] which was an extremely successful IPO. Umeme won the best IPO for Africa [award]. In terms of bringing trust back into the financial markets and FDI [foreign direct investment] industry, we have done well.
But the best thing is to bring down the losses. We are now down to 24.9 % from 38 %. Our target is 24 % by the end of this year. Every [1 %] loss of power is valued in excess of $3m.
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