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Uganda Judgment

Electricity Disputes Tribunal

Kiyingi v UMEME Limited (EDT COMPLAINT 15 of 2014) [2015] UGEDT 3 (12 October 2015)

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01

Holding and result

The tribunal found that while there is a genuine dispute regarding the fraud charge, both parties agree in principle to partial payment pending determination. The applicant's financial hardship and willingness to pay in installments were considered. The tribunal held that fairness requires reconnection upon payment of the first installment, with subsequent monthly payments, rather than insisting on full upfront payment of 60%. This balances the respondent's right to secure payment and the applicant's right to access electricity, pending resolution of the main claim.

Court disposition

Application granted in part; reconnection ordered upon phased payment arrangement.

Orders

  • The claimant shall pay UGX 200,000 per month with effect from October 2015 until disposal of the matter.
  • Upon payment of the first installment, the respondent shall reconnect the claimant.
  • The claimant shall pay for power consumed in each month from October 2015 onwards.
  • Both part payment and monthly consumption charges must be paid by the last day of each month.
  • Any default by the claimant on payments entitles the respondent to disconnect power.
  • Amounts paid as part payment on the fraud bill shall be refunded or credited if the claimant succeeds in the main claim.

02

Material facts

Parties

Kiyingi Badru

Applicant

Umeme Limited

Respondent Counsel: Pricilla Namusikwe

Amounts and remedies

  • 60% of Fraud Bill Demanded by Respondent: UGX 2,479,000
  • Monthly Installment Ordered by Tribunal: UGX 200,000

03

Procedural history

  1. Posture

    Miscellaneous Application / Interlocutory Application for Interim Relief Pending Determination of Main Claim

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contends he was not present when the alleged fraud was committed by his tenants, has suffered and continues to suffer loss due to disconnection, has a history of prompt bill payment, and is willing to pay the required 60% in installments due to financial hardship caused by tenant departure and personal illness.
Respondent
The respondent, through counsel, argues that reconnection should only occur upon full payment of 60% of the fraud bill (UGX 2,479,000), and that the applicant has not demonstrated willingness to pay, having made no payments since disconnection in January 2014.

05

Court’s reasoning

  1. 01

    Electricity Act Cap. 145; Electricity Disputes Tribunal (Procedure) Rules 2012

    A utility provider may require partial payment of a disputed bill as a condition for reconnection pending final determination.

  2. 02

    General principles of equity and fair hearing

    Interim relief may be granted to prevent undue hardship where there is a bona fide dispute and willingness to pay is demonstrated.

06

Ratio, limits and disposition

Ratio decidendi

The tribunal found that while there is a genuine dispute regarding the fraud charge, both parties agree in principle to partial payment pending determination. The applicant's financial hardship and willingness to pay in installments were considered. The tribunal held that fairness requires reconnection upon payment of the first installment, with subsequent monthly payments, rather than insisting on full upfront payment of 60%. This balances the respondent's right to secure payment and the applicant's right to access electricity, pending resolution of the main claim.

Obiter and limits

  • The respondent has a duty to prevent power thefts and protect revenue.
  • Economic hardship faced by the applicant due to disconnection was a relevant consideration.
  • Amounts paid as part payment on the fraud bill may be refunded or credited if the applicant succeeds in the main claim.

Court disposition

Application granted in part; reconnection ordered upon phased payment arrangement.

  • The claimant shall pay UGX 200,000 per month with effect from October 2015 until disposal of the matter.
  • Upon payment of the first installment, the respondent shall reconnect the claimant.
  • The claimant shall pay for power consumed in each month from October 2015 onwards.
  • Both part payment and monthly consumption charges must be paid by the last day of each month.
  • Any default by the claimant on payments entitles the respondent to disconnect power.
  • Amounts paid as part payment on the fraud bill shall be refunded or credited if the claimant succeeds in the main claim.

Source and reliance status

Electricity Disputes Tribunal

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Judgment text

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Source document

Electricity Disputes Tribunal

Judgment

[2015] UGEDT 3

THE REPUBLIC OF UGANDA

ELECTRICITY DISPUTESB TRIBUNAL SITTING AT KAMPALA

IN THE OF THE ELECTRICITY ACT CAP. 145

AND IN THE MATTER OF THE ELECTRICITY DISPUTES TRIBUNAL (PROCEDURE)

RULES 2012, si.53/2012

(ARISING FROM COMPLAINT NO. EDT/15 /2014)

IN THE MATTER OF

KIYINGI BADRU APPLICANT/COMPLAINANT

VERSUS

UMEME LIMITED RESPONMDENT

RULING

This is an application by the Complainant, Mr. Badru Kiyingi for an order of this tribunal to compel the Respondent Ms. UMEME to re-connect power pending payment by him of <sup>a</sup> reasonable "fraud charge" pending the determination of the main claim.

)

The reasons advanced by him for his application are that he was not around when the alleged fraud was committed by his tenants, he has suffered loss and continued to suffer loss arising from the disconnection of power since January 2014, and that he, had previously been paying his bills promptly and his claim has high chances of success.

In response, Pricilla Namusikwe, Counsel for the Respondent informed the tribunal that the Respondent is willing to reconnect the power pending the disposal of the matter before this tribunal, provided the claimant pays 60% of the fraud bill which amounts to UGX. 2,479,000.

Counsel Namusikwe contended that the complainant had not demonstrated willingness to pay since, he has not paid any money since January 2014 when he was disconnected. She therefore argues that there is nothing to show that he will pay.

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In reply Mr. Kiyingi advances as <sup>a</sup> reason for nonpayment the fact of having been disconnected resulting in his tenants vacating the rental houses which were his source of income. The above is coupled with his sickness (diabetes, blood pressure and kidney) for which he has to pay high sums of money for treatment. This is in addition to paying fees for his children.

From the above, it is clear that there is a dispute between the parties as to <sup>a</sup> fraud charge.

It is also clear that both parties do not differ on the principle of partial payment pending the determination of the matter by the tribunal. What is in dispute is the manner in which to pay the 60% that both parties have agreed be paid!

The Respondent demands 60% payment in full before re-connection.

The claimant is willing to pay 60% but requests that the same be phased by allowing him to pay the shs. 100,000/=; the re-connection taking place immediately upon his acceptance to pay and not necessarily upon payment of the 60% in full.

The tribunal is mindful of the following;

- I. That there is dispute between the parties as to the fraud bill. - II. . The Respondent has duty to reign on persons and entities who indulge in "power thefts". - III. The economic hardship faced by the Complainant as a result of his disconnection while he was away on business. - <sup>1</sup> IV. The willingness of both parties to reconnect pending the determination of the claim

In view of the above, the following orders are made by the tribunal;

- i. The Claimant shall pay shs. 200,000/= per month with effect from October, 2015 till disposal of this matter. - ii. installment, the Respondent shall reconnect the Upon payment of the 1st claimant. - iii. In addition to the payment in (i) above, the Claimant shall pay for power consumed in any particular month, thereafter October 2015 inclusive.

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2

- iv. Both part payment and power consumed on the month shall be paid by the last day of the month that they fall due. - v. Any default by the claimant on any of the payments in (i)-(iv) above, shall entitle the Respondent to disconnect power. - vi. Amounts paid as part payment on the fraud bill shall in the event of success by the Claimant in the claim either be refunded or treated as credit to the claimant by the Respondent.

Dated at Kampala this day of October, 2015.

.. Chairman Anaclet Turyakira Chairman Charles Okoth Owor...../........ Lx1'.'.'.

Member Moses Musaazi

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Electricity Act Cap. 145

Legislation

Legislation referenced in the available case record.

Electricity Disputes Tribunal (Procedure) Rules 2012

Legislation

Legislation referenced in the available case record.

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