Needy families to benefit from lower power tariffs

Needy Rwandans stand to benefit from more affordable power rates by 2017 if a new proposal to help low income families is adopted, the Rwanda Utilities Regulatory Authority (RURA) said. The development comes on the heels of an announcement of new power and water tariffs, last week, due to come into force next month. The price of a kilowatt/hour (a unit for electricity measurement) has been increased by 34.5%, from Rwf134 to Rwf182, for public consumption, while that of a cubic meter of water increased by 19%. But the price of electricity for industrial use remained at the previous Rwf126 a kilowatt/hour. Patrick Nyirishema, the director-general of RURA, told The New Times on Friday that the move is intended to make energy affordable to the vulnerable. His disclosure was in response to calls by sections of the public that electricity and water prices should be based on income levels, like it is the case with public health insurance, if all Rwandans are to benefit from the utility. Jean Claude Muhawenimana, from Musanze District said RURA, should consider lowering power and water tariffs for low income households since many could not even afford the previous prices, which were lower. Benjamin Rutayisire, a resident of Ngoma Sector, Huye District, said electricity and water prices should be charged taking into account the income brackets of consumers. “It would be unfair to have a person earning Rwf50,000 or without a stable income to pay the same amount as the person earning Rwf800,000 or Rwf1 million,” said Rutayisire. Josée Mukamabano, a resident of Gishamvu Sector, Huye District, said although there is electricity line near their home, they cannot afford the connection fees. “We need support to access electricity,” she said. Nyirishema said the increase in power tariffs was mainly due to the fact that 30% of power used in Rwanda is generated from diesel-fueled machinery, which is costly as the operation costs Rwf59 billion per year. He said the price would increase further if the Government did not heavily subsidise power generation. “A kilowatt/hour was set at Rwf182, but the cost of one kilowatt/hour generated through diesel costs Rwf292,” he said. Nyirishema, however, said the Government is putting more efforts in investing in alternative power generation projects which will end reliance on diesel-fueled energy. On water, prices depend on consumption levels, with big consumers paying more than small consumers. A cubic metre (1,000 litres) is at Rwf323, but from 5m3 to 20m3 the price of a cubic metre was set at Rwf331. The industrial users will part with Rwf736 per cubic metre, up from the current Rwf593. The price of water was set in 2006, and that of power in 2012. Nyirishema explained that the rise in the tariffs was mainly due to the high cost of production. The Government’s target is to have 70% of Rwandans access electricity and 100% access clean water by 2018. Access to water is currently estimated to be 82%, while that of electricity stands at 22% of households in Rwanda.

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Needy families to benefit from lower power tariffs