UMEME-the Electricity Regulatory Authority has halted with immediate effect of free electricity connections to rural households in Uganda because of financial constraints.
The program implemented by the government through the Rural Electrification Agency-REA in 2018 with the aim of supplying electricity at subsidized rates under the free Electricity Connections Policy (ECP).
Under the ECP,300,000 customers are to benefit annually by paying only shs20,000 for inspection while the government pays connection fees.
However, in a statement released on Wednesday morning, Peter Kaujju, the communications head at Umeme says that they were compelled to suspend the program due to financial constraints resulting from the COVID-19 pandemic.
“Due to a realignment of priorities and financial resources by the government in part brought by the unexpected Covid-19 pandemic, the ECP program has been put on hold until further notice,” Kaujju said.
He went on to explain that the Ministry of Energy, UMEME, and REA all acknowledge the weak financial standing constraints and working hard to sustain the program.
