Industries to get power subsidies

Energy Water and Sanitation Authority (EWSA) has launched a programme that will enable industries operate with subsidised power tarrifs.

Saturday, February 25, 2012

Energy Water and Sanitation Authority (EWSA) has launched a programme that will enable industries operate with subsidised power tarrifs.This was said yesterday by the Director General of EWSA, Yves Muyange, during a press conference at the utility’s headquarters in Kigali.According to Muyange, the programme which will be known as Times of Use (TOU) will mainly target processing plants and factories.He said that the project is still a proposal adding that they have submitted it to Rwanda Utilities Regulatory Authority (RURA) and the Ministry of Infrastructure for approval, and once approved, implementation may begin next month. "Our industrial customers consume around 30 per cent of the total power produced and the objective of this project will be to give incentives to major consumers not to consume electricity during peak times by shifting their production schedules to off peak times,” Muyange said.Muyange said that the peak daily demand for electricity is between 5pm and 11pm adding that clients like households face challenges of load shedding during this time because it’s the time industries use too much electricity. He said that they will offer industrial customers a decrease of 24 per cent on the existing tariffs.The official added that generating power during peak hours is very expensive, adding that mobilizing industries to consume less electricity during the peak will enable EWSA save  substantial power "With a more competitive electricity tariff, Rwanda will be able to attract more industries to invest in the country and existing ones to expand their business operations,” Muyange said. Various consultations have already been carried out between EWSA, industries, the Private Sector Federation (PSF) and the Ministry of Commerce about the move.He said that the programme is still a draft but noted that it’s something they want to put in place in the very near future, saying they have already submitted their draft to the regulator and Minifra to consider for implementation.Rama Kant Pandey, General Manager of Inyange Industries Ltd, a leading producer of various consumer products,said: "From the manufacturers’ point of view, I think this idea is very crucial because it will help us improve our performance in terms of profitability and production”.