. Why does Umeme Limited purchase energy at a lower price /kWh from UETCL and charge a higher price/kWh to customers?

Umeme buys electricity at an average tariff of Ush 290 per kWh and sells to customers at a weighted average tariff of about Ush 504 per kWh. The difference between the two tariffs is the distribution price which recovers the approved costs of running the distribution business; including the recovery of investment costs (recovery of invested amounts and the return on investment).