Concession areas

As part of the rural electrification effort being undertaken by both the Uganda Government and the private sector, FESL is involved in maintaining and operating rural power distribution, as a distribution utility company in the following areas: Kakumiro–Kibaale–Kagadi, Rukungiri–Kanungu, Ntugamo–Kitwe–Isingiro, Kyotera–Mutukula–Kansensero, Masaka–Bukakata and Rugombe–Kyenjojo–Katooke electricity distribution concessionaires. So far the total number of consumers connected to FESL power distribution network is over 5,000 on prepayment metering system.
The agreement signed by FESL with the Uganda Government in 2007 through the Electricity Regulatory Agency (ERA), is to maintain and operate the electricity distribution in the above mentioned concession areas for a period of ten years extendable to fifteen years. FESL purchases electricity from Uganda Electricity Transmission Company Limited (UETCL).

4.2.1 Management Capacity

FESL has since 2007 been managing and operating power distribution in the concession areas mentioned above to the satisfaction of the customers connected on its network. All the customers are connected on prepayment metering system.
The Company currently employs about 400 personnel of various skills’ categories and experience, and this is in line with the Government of Uganda effort to create jobs to the nationals. The personnel provide quicker/faster attendance to faults in the system and have the capacity to carry out routine maintenance of the system, hence a healthy transmission and distribution network with limited customer supply interruptions. The company invests in staff motivation that builds confidence, accuracy and ensures diligent performance of the day to day activities to the satisfaction of the customers. This discourages corrupt tendencies, hence efficient service delivery.
The Company’s policy and practice is to ensure availability of technical materials in its stores to meet the customer demands for new customer connections and maintenance of existing power network. This is boosted by our ability and experience in the procurement of materials from within and abroad plus the existence of our own pole treatment plants in Lugazi.
The company has the capacity to put up well distributed service centers (offices) in the power concession areas so as to provide the services as close as possible to its customers. This promotes and supports customer accessibility for effective and efficient service delivery.

4.2.2 Technical Capacity

a)      Management of concessions

FESL has since 2007 been managing and operating power distribution business in a number of concession areas as already stated above. So far the total number of consumers connected to FESL power distribution network is over 5,000 on prepayment metering system.
The prepayment metering system of power billing in our concession areas, allows our customers to control their consumption and do budget for their power use. This helps improve on power saving in the concession areas and instills customer confidence.

The prepayment metering system has simplified revenue collection since payments for energy are made upfront and hence no need for meter reading or billing. This has had a positive impact on keeping our operations costs low.
 
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