The Electricity Regulatory Authority (ERA) has disclosed that power distributor Umeme has submitted a fresh claim for an additional $117 million in compensation, beyond the amount previously approved and verified by the Auditor General.

This comes after Umeme received a $118 million buyout payment in March, following the expiration of its electricity distribution concession.

The initial payment had undergone thorough scrutiny and approval by the Auditor General.

While appearing before Parliament’s Committee on Commissions, Statutory Authorities, and State Enterprises (COSASE), ERA Chief Executive Officer Ziria Tibalwa Waako informed lawmakers that Umeme is dissatisfied with the initial payout and is seeking further compensation.

Waako cautioned that if an agreement cannot be reached through domestic mechanisms, the matter may be escalated to the Court of Arbitration in London, as stipulated under international contractual dispute resolution frameworks.

In a related issue, Waako also addressed reports that Umeme owes UGX 500 billion to the Uganda Electricity Transmission Company Limited (UETCL).

She acknowledged the debt and noted that while Umeme is currently in a position to settle the obligation; legal action should be pursued if the company fails to honor the payment.

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