RURA cuts power tariffs for industrial consumers

Sunday August 12 2018

Technicians from Rwanda Energy service an

Technicians from Rwanda Energy service an electricity pylon in Kigali. Industrialists in the country cited high electricity costs as making the manufacturing sector uncompetitive. 

KABONA ESIARA
By KABONA ESIARA
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Rwanda brought down the industrial use power tariffs by an average of 6.5 per cent as it seeks to stimulate growth in the manufacturing.

Rwanda Utilities Regulatory Authority (Rura), the regulator of the power sector in Rwanda reduced the power tariffs for large industries by 3.6 per cent, from Rwf83 ($0.096) per kWh to Rwf80 ($0.092) per kWh.

The tariffs for medium industries dropped to Rwf87 ($0.101) from Rwf90 ($0.104) per kWh while the small fell from Rwf126 ($0.146) to Rwf110 ($0.127) in the new changes communicated by Rura, a utilities regulator.

“The electricity tariffs for industry have been reduced in order to attract foreign investment and increase competitiveness of the Rwandan industrial sector,” said Anthony Kulamba Rwanda Regulatory Authority (Rura), the power sector regulator spokesperson.

Pressure

However Rwanda Today understands that the government has been under pressure from industrialist who have been pushing for a reduction in industrial electricity tariffs.

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Last year the industrialist had suggested 50 per cent cut in power tariffs saying high electricity costs were making the manufacturing sector uncompetitive.

In the new changes, Rura has maintained the lifeline tariff to ensure affordability of electricity service for low income households.

Rwanda has introduced a “lifeline tariff” for low-income households in a review of power tariffs aimed at bringing the cost of electricity to par with its East African neighbours.

The utilities regulator has introduced a tariff of $0.11 for the first 15 units consumed in a month

Rwanda last revised her tariffs in December 2016.

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