Uganda stated on Friday it will not renew South Africa energy agency Eskom’s licences to run two hydropower stations after they expire in March subsequent yr, as a part of plans to carry the electrical energy sector beneath authorities management to scale back prices to customers.
The federal government will create the Uganda Nationwide Electrical energy Firm Restricted (UNECL), a state-run firm to handle the era, transmission and distribution segments of the electrical energy sector, the ministry of vitality and mineral growth stated in an announcement.
President Yoweri Museveni has repeatedly complained that costly non-public capital was liable for excessive electrical energy tariffs in Uganda, which makes it unaffordable for customers.
“The ministry has already formally notified Eskom…of the federal government’s choice to not renew their concession agreements after they come to their pure finish in March 2023,” the ministry stated within the assertion.
Eskom didn’t instantly reply to a request for remark.
Eskom runs two hydropower crops on the supply of the River Nile in Jinja, about 90 kilometres (56 miles) east of the Ugandan capital Kampala.
The federal government intends to “minimise costly non-public capital” within the electrical energy sector by bringing it beneath direct state administration and management, the ministry stated.
The brand new firm, UNECL, will doubtless be structured as a Public Non-public Partnership (PPP) with the state agency as a majority shareholder, the vitality ministry stated.
Final month the federal government notified Umeme Restricted (UMEME.UG), a non-public firm with monopoly rights to distribute energy in Uganda, that it will not renew its licence when it expires in March 2025.
The publish Uganda says will not renew Eskom’s hydropower licences next year appeared first on SABC News – Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader..