The Electricty Tribunal has ordered powered distributor, Umeme pay Shs 30 million in compensation to Kamba Petroleum Uganda Limited for losses caused by unauthorized electricity connections that led to inflated bills.
The dispute dates back to 2016, when Kamba Petroleum lodged a complaint accusing Umeme of connecting multiple third-party customers to its electricity meter.
This not only led to unusually high billing over two and a half years but also caused disruptions that affected the company’s operations and incurred financial penalties from clients.
On December 5 , 2016, the company formally submitted a claim citing overbilling, exaggerated bills, and repeated disconnections that hampered their business.
According to Kamba Petroleum, these issues caused them to lose more than Shs 300,000 in unconsumed energy, while also harming product quality and delaying deliveries to coffee buyers.
Umeme, however, refuted the allegations, asserting its professional conduct and denying responsibility.
The utility provider claimed that any interconnections were carried out by unknown third parties and were addressed as soon as they were reported.
Umeme further argued that only 12 customers had been improperly linked contrary to Kamba Petroleum’s original claim of 50.
Despite Umeme admitting to those 12 unlawful connections, it maintained that the situation stemmed from an innocent error rather than negligence.
The company said the matter was resolved within two months and therefore did not warrant compensation.
In the ruling, the tribunal Chairman Charles Okoth Owor emphasized that the case pointed to a breach of duty under existing regulations.
“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.
The tribunal cited the Electricity (Primary Grid Code) Regulations, 2003, which require electricity suppliers to provide, install, and maintain standard metering and ancillary equipment. It concluded that Umeme’s conduct was more than just an error, but a direct violation of these obligations.
The tribunal determined that a genuine loss had been occasioned to Kamba Petroleum due to Umeme’s negligence.
“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.
