tariff hikes
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The Rwanda Energy Group (REG) is planning to revise power tariffs for productive users in the industrial sector in the coming months.

The Minister for trade and industry Vincent Munyeshaka confirmed the development, adding that the country is in the process of getting past the hurdle of energy production, which has made room for price reduction.

“Previously, energy production was not enough. We have been able to boost production. Now we are trying to make it cheaper for users, especially the productive users in the industrial sector. This is part of the reforms that are ongoing,” said Munyeshaka.

According to the New Times, he said: “We want to have some preferential consideration for productive users. We conducted a feasibility study whereby the findings show that it is possible to reduce the cost further,” he said.

REG chief executive Ron Weiss said that the revision will also involve reduction of cost of generation by cutting reliance on fuel for energy generation. Read more: Rwanda Energy Group connects Ruhango District to electricity grid

New power stations

Weiss revealed that the power utility is working to ensure that by 2020, there will be no reliance on fuel for energy generation which will reduce cost of production. This will include installation of new power stations.

Among the challenges that have been in the way of revision of tariffs include energy losses due to the quality of the grid, as well as theft.

“We are currently facing a challenge of theft, which is causing us to lose significant revenue,” he said.

He added: “We have succeeded in reducing the technical losses to below 20% by improving the grid. The target should be less than 10%. Every year we plan on reducing it by at least one per cent.”

In conclusion, the REG official said, “We are still not mature enough to reduce the tariffs drastically. Every new power station will enable us reduce the cost gradually. It will take some time.”

African Utility Week