Power distributor
Speaking during the 10th Annual General Meeting in
"Since the 2012 Initial Public Offer,
He added: "We have doubled our electricity sales to 3,500 gigawatt hours, reduced energy losses from 27.3 per cent in 2011 to 18 per cent today, maintained our collection rates at 99 per cent and rolled out prepaid metering to 99 per cent of the 1.6 million domestic customers and invested in innovative technologies and digital solutions for service and business operations."
He said the company is now focusing on creating electricity demand through industrial production, productive use of electricity and new customer connections. Babungi said the demand for electricity continues to grow year-on-year, with a 10 per cent increase in sales in 2021 to 3,507GWh.
"The growth is driven by investments in grid expansion, connections, reduction in energy losses and increased generation capacity. Growing sales reduces deemed energy costs and contributes to overall tariff reduction," he said.
Babungi said they connected 129,000 customers to the grid in 2021, funded under the capital investment, self-funding, and government free connections. He said the company has simplified the connection process through the online application platform.
However, the new connections are still a challenge due to lack of government-funded connections, with a backlog of 211,000 pending. The company also converted 99 per cent of customers to prepayment metering, which has improved revenue collections.
INVESTMENTS
Through investments in the distribution grid and streamlining the commercial operations of the business,
"Over the last two years, the effects of Covid-19 combined with the lack of ECP funding have contributed to the loss reduction performance. With the opening of the economy, we have re-invigorated our strategy to reverse the curve," Babungi explained.
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