By Silvia Nyambura
Umeme Limited’s prepaid service Yaka has reached a record 360,000 registered customers of the current total of 750,000 customers on the electricity grid. The company’s Managing Director Selestino Babungi said Umeme aims at connecting over 1 million customers by 2018.
The company has now unveiled a campaign dubbed ‘Lighten up with Yaka’. It seeks to educate the public on the numerous benefits that come with prepaid electricity, focusing on convenience, control and cost management for the customer.
Addressing the media at the Kampala Serena Hotel today, Babungi revealed there is a large section of the public that does not know about the benefits of the service.There have also been queries on differing units on the same amount of money used to purchase electricity credit.
“Many people are wondering what causes this and some have concluded that it is ‘luck’. Every first purchase of units within a month’s period is subject to a service fee of Ushs 3,360 which is debited per month. However, subsequent purchases of units within the same month period are not subject to any charges. This is what causes the cost-units disparity. The other cause of the disparity is that the first 15 units purchased every month are at a discount of Ushs 150 per unit, but all units after that are at a fixed rate of Ushs 667.4,” he said.
Nicholas Mukasa Appointed Bank of Namibia Deputy GovernorUmeme introduced Yaka to the market in 2011 with a pilot program made up of 10,000 customers. Babungi said this innovation has reduced operational costs for the company.
“Yaka has improved our cash flow management. Previously it would take an average of 90 days for customers to pay their bills. Prepayment ensures they all pay on time. Costs to serve have also decreased as customers do not need to come down to our offices to access services,” he added.
Meanwhile, the company has increased its electricity tariffs by 19.7% from Ushs 558.4 to Ushs 667.4 a unit.This follows the Energy Regulatory Authority’s (ERA) announcement last week that it had hiked electricity tariffs by 19%. ERA attributed this hike to the weakening shilling.
