By Silvia Nyambura
Umeme customers may end up paying more for electricity in the near future following the release of the Company’s half year financials. The electricity distributor registered a loss of Ushs 4.47 billion in the first half of 2015 compared to a profit of Ushs 38.27 billion in the same period last year. This performance is attributed to a surge in unrealized foreign exchange losses on borrowings from Ushs 7.6 billion in the first half of 2014 to Ushs 61.8 billion.
According to the company’s MD Selestino Babungi, Umeme operates under a US dollar concession with the local currency (Uganda Shilling) as its functional currency.
“We are confident we will recover the foreign currency losses over the life of the concession through the quarterly tariff adjustment mechanism,
