The Electricity Tribunal has ordered Umeme to pay Shs 30 million in compensation to Kamba Petroleum Uganda Limited for unlawfully connecting other customers to the complainant’s meter, which led to overbilling and significant financial losses.
In 2016, Kamba Petroleum filed a complaint with the Electricity Tribunal, alleging that Umeme had unlawfully connected multiple customers to its electricity meter. This resulted in inflated electricity bills, and the company sought reimbursement for the overcharged amounts.
Umeme denied any liability, asserting that it conducts its operations lawfully and professionally. The company claimed that the interconnection of other customers to Kamba Petroleum’s meter was the work of third parties, and that once the issue was brought to their attention, it was promptly resolved.
While Kamba Petroleum initially alleged that 50 customers had been interlinked, Umeme’s witnesses verified only 12 such cases. Kamba Petroleum also claimed that the unlawful connections and resulting power interruptions caused them to incur penalties from coffee buyers due to poor product quality and delays in delivery.
Additionally, the company reported a financial loss exceeding Shs 300,000 for unconsumed energy and other inconveniences arising from repeated disconnections. On December 5, 2016, Kamba Petroleum formally filed a claim for overbilling, exaggerated bills over a two-and-a-half-year period, and other financial losses.
Though Umeme admitted to the interconnection of 12 customers, it argued that the incident was a mistake rather than negligence, and that since the issue was resolved within two months, no damages were warranted.
However, Tribunal Chairman Charles Okoth Owor held that Umeme’s actions were more than a mere error, noting that they contravened the Electricity (Primary Grid Code) Regulations, 2003. The regulations mandate that electricity suppliers provide, install, and maintain standard metering and ancillary equipment.
“Umeme had a legal duty of care to act diligently and professionally, avoiding conduct that would harm others. By connecting 12 customers to Kamba Petroleum’s supply, Umeme breached that duty, resulting in damage to the complainant. This constitutes negligence, entitling the complainant to compensation,” the tribunal ruled.
While Kamba Petroleum was unable to provide precise financial figures, the tribunal concluded that it had demonstrated a clear breach of duty and resultant loss.
“It is the tribunal’s responsibility to assess general damages. We hereby assess the damages at Shs 30 million, a fair amount given that the complainant is a profit-oriented business which suffered financial harm, including paying for unconsumed electricity and the opportunity cost of funds lost due to overbilling, as well as the inconvenience of the wrongful connections and subsequent disconnections,” the ruling stated.
