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Uganda UGANDA South Sudan DR Our Congo Network Kitgum Distribution Albert Nile Gulu in Uganda UGANDA Umeme’s 458,000 customers are located mainly in urban centres. Lira Masindi Umeme’s footprint extends for 1 km Soroti around the backbone line Lake Albert Hoima Lake Kyoga Bombo V i c Mbale t o r ia N Tororo i Mityana l Fort Portal e Iganga Kampala Jinja Kenya Kasese L. George Entebbe Katonga l Lake Kazinga Channe Masaka Edward Bushenyi Lake Victoria Mbarara Kabale Tanzania Rwanda Highlights Page 2-3 Messages from Staff Page 4-5 Appreciation for Umeme’s Service Page 6 Umeme Relies on Local Suppliers Page 7 Board of Directors Page 8-9 Safety is Paramount Page 10 Message by the Chairman of the Board Page 11 Customer Contact Centre Page 12 Message by the Managing Director Page 13 Umeme’s Control Centre Key Umeme Staff Page 17 Financial Report for 2011 Page 18 Umeme powers Kampala Company Information Page 18 Report of the Directors Page 19 Statement of the Directors’ Responsibilities Page 23 Financial Statements Page 24 Income Statement Page 25 Statement of Comprehensive Income Page 26 Statement of Financial Position Page 27 Statement of Changes in Equity Page 29 Statement of Cash Flows Page 30 Notes to the Financial Statements Page 32 Contents Cover: Pre-payment customers can purchase vouchers at supermarkets like Nakumatt 1 Umeme Annual Report and Financial Statements for the year ended December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meme Annual Report and Financial Statements for the year ended December 2011 VIWYPXMRKMRWYWXEMRIHKVS[XLMRXLI ERHWMKRMJMGERXMQTVSZIQIRXMR [LMPWXHIPMZIVMRKZEPYI IPIGXVMGMX]HMWXVMFYXMSRWIGXSV STIVEXMSREPTIVJSVQERGI XSSYVWLEVILSPHIVW 9QIQI4VSJMX )&-8(% (MWXVMFYXMSR0SWWIW 9WLWFMPPMSR 9QIQIMWSRISJXLIFMKKIWX MRZIWXSVWMR9KERHE 8SXEP'YWXSQIVW 9QIQI-RZIWXQIRX 97QMPPMSR ERHWXEOILSPHIVW 'SPPIGXMSR6EXI 7EPIW +;L 9QIQI'SQTSRIRX SJ7IGXSV6IZIRYI 6IUYMVIQIRX )\GPYHMRKVITE]QIRXSJLMWXSVMG9)&HIFX 3 Umeme Annual Report and Financial Statements for the year ended December 2011 Selestino Babungi Florence Nsubuga Chief Finance Officer Chief Operations Officer We are delighted by the good converted to pre-payment metering. Umeme adopted a multifaceted Umeme’s image as a professional financial performance recorded The performance management approach to manage the challenges service provider has been enhanced in the 2011. In 2011, Umeme system introduced in 2009 continues it faced in 2011. by improvements to service centres. recorded EBITDA of US$ 41m, up to drive improvements in operations Clear signage and visual display of from US$ 31m in 2010. Operating and customer service. The power shortfall, which explanations of matters relating to cash flows from operations worsened further in July 2011, was connection, billing, payments and increased by 38% and shareholder We will continue to focus on a one the major challenges Umeme distribution of US$ 6.2m was paid. variety of solutions like automated disconnection should contribute metering, SCADA, aerial bundle had to address during the year; customer satisfaction, as we find Umeme continued to invest in net- conductor, contact centre, SMS and another was the consequences of that much dissatisfaction is rooted in work expansion, network restora- internet-based solutions and mobile major faults on the network. misunderstanding. We’ve continued tion/rehabilitation, customer connec- money technology to improve with initiatives to address corruption tions, and energy loss reduction and operations, deliver on regulatory As a result, communication with from both within and outside the operational efficiency. A total of US$ targets and enhance our relationship customers was identified as a company. 27.4m of investments was made with customers. priority. One of the wide-reaching during the year, financed by IFC debt communications initiatives involves Customer feedback about the and internally generated cash. “In 2011 Umeme the appointment of an Outage implementation of pre-paid meters under a pilot project has been The main drivers for the good spent more than Projects Manager, who analyses the performance were reduction in load-shedding schedule to ensure very positive. Further initiatives in energy losses to 27.3%, improved Ushs 500 billion locally transparency, and constantly engages the pipeline include expansion of cash collections, to 98.9%, growth with stakeholders to provide the pre-paid metering project, and in purchases of 4% and capital on operations, power information. Implementing a system implementing additional payment investments of US$ 27.4m. Our of SMS alerts and radio broadcasts options, including Mobile Money. Messages from StaffMessages from purchases and capital customer base grew by 13%, to has reduced the number of calls to 458,000, of which 8,000 were expenditure.” the call centre. 4 Umeme Annual Report and Financial Statements for the year ended December 2011 Robert Mubiru Beatrice Nampinga Project Manager, Kampala Customer Care Executive In 2011, Umeme successfully notice, we have decentralised In the eight years I’ve worked for help them. Umeme has been a realigned its processes to improve decision making in relation to Umeme, I’ve served as a meter good employer to me. I have been service delivery to a growing upgrading or replacement of reader and a data clerk. I’ve been able to educate my three children number of customers. transformers, and investigated in my current position, Customer and my job is very rewarding. I new suppliers, thereby reducing Care Executive, for two years now. enjoy the trust my manager has One of Umeme’s achievements the time needed to replace a Reading meters is not an easy job, placed in me. in 2011 was reducing the wait for transformer to an average of five and is riddled with challenges. In a new connection from about 14 days. those days, there was no pre- days to an average of seven days for payment, and now that I’m working domestic customers, and to 25 days Communication with customers with pre-payment customers everyday, I realise how much things (from two months) for commercial received a boost as a result of a “Customers who have improved. customers. Further, more than campaign to capture customer 80% of reported faults are being data – half of customers’ mobile visit our offices During 2011, most of the queries resolved within 24 hours, and phone numbers are now tagged related to shortage of supply, which or call our 24 another 10% within 48 hours. to their bills. Engaging social affected all customers, big and small. media has also yielded positive I feel very proud when I succeed in hour free phone Umeme’s supply was negatively results, as we’ve found that open helping customers with their queries affected by transformer failure, channels of communication and issues. When this happens, I line deserve caused either by theft and leads to more constructive know I’m making a difference. I’ve vandalism, or destruction as a engagement. had training in customer care and professional result of overload. Even though learnt how to deal with people. service.” it is sometimes difficult to obtain Customers who visit our offices or replacement transformers at short call our 24-hour free line deserve StaffMessages from professional service, and I want to 5 Umeme Annual Report and Financial Statements for the year ended December 2011 Emmanuel Katongole Fred Kalule CEO, Quality Chemicals Woodworker, Luzira The relationship between the team at Quality Chemicals Industries I’ve been a customer of Umeme for seven years. My business would be Limited (QCIL) and Umeme staff is very good, and characterised by timely impossible to operate if I did not have power, as I specialise in cutting communications, advice and visits to our site to check on our supply timber, for which I need to operate power saws and other heavy machinery. system – it is clear that Umeme understands our operations. Even though the electricity supplied has not always been sufficient, Umeme has always I don’t have a generator, as it’s too expensive to run. So, when there is load tried to give priority to large industrial consumers like QCIL, and informs shedding, I can’t work. I have four employees, so you can see that power us in good time about load shedding and emergency shutdowns, enabling cuts really affect my business. I receive my bill regularly every month, and I us to plan better. Umeme even goes as far as adjusting routine maintenance can talk to Umeme when I experience problems. and load-shedding schedules to meet QCIL’s critical times of operation. In order to meet our increasing demand for power, Umeme has continuously communicated
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