New water, power tariffs come into force today

The new tariff for water and electricity which was announced last month by Rwanda Utility Regulatory Authority (RURA) comes into effect today. The water tariff will see an increase of 19 per cent, while electricity tariff for low voltage users goes up by 35 per cent. Speaking to The New Times, yesterday, James Sano, the CEO of Water and Sanitation Corporation (WASAC), said the new tariff would come into effect at midnight on Tuesday and will not affect previous consumption. The same message was reiterated by Odette Mbabazi, the managing-director of Energy Utility Corporation Limited (EUCL), in an interview with this paper yesterday. “Today, our vending machines will be adjusted to the new tariff. Come end of September, our clients will be billed with the new tariffs different from that of August,” she said. The two utility bodies say the new tariffs were introduced to ensure cost distribution, since previous tariffs had not been revisited in a long time. Sano said WASAC had last revisited their tariff about 10 years ago, while the electricity tariff was last revised in 2012, according to Mbabazi. “In other countries, tariffs are reviewed quarterly or annually,” Mbabazi added. The electricity tariff will increase by 35 per cent for low voltage users, including residential and non-residential customers, where the price will go up from Rwf134 per Kilowatt/hour to Rwf182 per kilowatt/hour. For the medium voltage rates (industrial customers), the tariff will remain at Rwf126 per kilowatt/hour. The water tariff will increase by 19 per cent in general, but the bill will depend on the monthly use ranges. RURA says the increase is meant to offset the cost of electricity, which used to be subsidised by the electricity body. Sano said the water tariff is likely to be reviewed annually. He also noted that the increase is also meant to help cater for rehabilitation and maintenance of water networks and purchase of chemicals for water treatment. “There has been depreciation of the Rwandan Franc since the time the tariffs were last reviewed and costs of chemicals and other maintenance costs have definitely gone up. We need to ensure cost distribution and recovery,” said Sano. The utility bodies maintain that the cost won’t be heavily felt by the consumers, but rather the Government, which is likely to feel the pinch through its subsidisation policy. Efforts to increase water supply Sano added that there are efforts to increase water distribution to 104,000 cubic metres by the end of the current fiscal year, with the new water reservoirs under construction. “We are to commission a 25,000 cubic metre treatment plant which will increase water distribution from 65,000 cubic metres per day in Kigali to 90,000 cubic metres per day by December. This will improve our condition,” said Sano. But until then, for public taps, the flat fee will increase from Rwf240 per cubic metre to Rwf323 per cubic metre. For residential units and institutions consuming between zero and five cubic metres per month, the price will rise from Rwf240 to Rwf323 per cubic metre. Residential units and institutions with a monthly water consumption of between six and 20 cubic metres will see the price raise from Rwf300 to Rwf331 per cubic metre. For residential units and institutions consuming between 21 and 50 cubic metres per month, the price is supposed to rise from Rwf400 to Rwf413 per cubic metre. Homes and institutions using between 51 and 100 cubic metres per month will see the price go up to Rwf736 per cubic metre from Rwf650, while for those consuming between 101 cubic metres and above per month, the price will go up to Rwf847 per cubic metre from the current Rwf740. For industries, the flat fee will go up to Rwf736 from the current Rwf593 per cubic metre. During a recent interview with journalists in Kigali, Coletha Ruhamya, the chairperson of RURA board, said new prices are not meant to fix the current problem of water shortage, but reaffirmed that the government is working hard to address the issue. For electricity, 70 megawatts are expected to be added to national power grid by 2016, including 25 megawatts to be generated from Lake Kivu, 30 megawatts to be imported from Kenya and 15 to be generated from pit. For water, 25,000 cubic metres are projected to be added to the daily water production in Kigali onto the current 65,000 cubic metres. Meanwhile, Sano said WASAC is due to sign an MoU with the Police to avail them with investigators to check water theft. “We trust our clients, but in case there are incidents of theft, the culprits shall be penalised according to the law,” he stated.

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New water, power tariffs come into force today