The Ministry of Energy in Uganda, under the leadership of Ruth Nankakbirwa, has announced a deadline for the discontinuation of the aging Yaka prepaid electricity meters, in a move towards modernizing its energy infrastructure. The decision stems from Uganda’s commitment, in line with other regional counterparts, to transition to the Standard Transfer Specification, a cutting-edge technology allowing consumers to seamlessly switch between utility providers on a global scale.
The Yaka system, currently provided by Umeme Uganda Limited, will be replaced by a new Token Identification System (TID Rollover). The Ministry, aiming for full migration by October 2024, emphasizes the importance of this transition for consumers to continue purchasing electricity units conveniently. The forthcoming meters mark a departure from the existing Token Identifiers (TID), a change noted by South African operators who anticipate the depletion of TID by November 2024.
Ruth Nankakbirwa, addressing journalists at the Uganda Media Centre, outlined the strategic plan to integrate electricity tokens from various operators, diversifying choices beyond the current Yaka system. The envisioned shift aligns with the government’s broader agenda, as reiterated by President Yoweri Kaguta Museveni in his recent end-of-year address. Lowering electricity costs is a key focus, aiming to enhance the competitiveness of Uganda’s products both domestically and internationally.
President Museveni, aligning with the National Resistance Movement (NRM) government manifesto for 2021-2026, emphasized the significance of reduced end-user electricity tariffs in fostering industrialization and socioeconomic transformation. In pursuit of this goal, he directed Minister Nankakbirwa to reduce the cost of power, specifically for manufacturers, from 8.7 cents of the dollar (321 Shillings per unit) to 5 cents of the dollar (185 Shillings per unit).
Furthermore, President Museveni advocated for direct electricity purchases by the manufacturing sector from government power plants. The cost-effectiveness of power generation at Kiira (1.1 cents per US$ per unit), Isimba (4.16 cents US$ per unit), and the anticipated rate for Karuma (4.97 cents US$ per unit upon completion) supports this directive.
Dr. Sarah Kanaabi Wasagali, Chairperson of the Electricity Regulatory Authority (ERA), disclosed that between September and November 2023, the Authority reviewed annual tariffs following applications from key players in the sector. This comprehensive approach is part of Uganda’s broader Energy Policy for 2023, striving to achieve a targeted electricity generation capacity of 52,481MW by 2040, coupled with an 80% grid access rate.
As Uganda embarks on this ambitious journey of technological advancement and cost reduction, the looming deadline for phasing out Yaka meters signals a transformative era in the nation’s energy landscape.