We’ll turn energy utility into a profit making venture, says REG chief

Plans are in their final phase to turn the Energy Development Corporation Ltd (EDCL) into a profit-making and self-reliant institution, the chief executive said yesterday. Rwanda Energy Group (REG) chief executive Ron Weiss said this while appearing before Parliament’s Public Accounts Committee (PAC). It was the second day of a two-week process that will see 22 institutional heads and mayors appear before the committee for public hearings concerning the management issues contained in the 2014/15 Auditor-General’s report. Eng. Weiss, who took over leadership of the institution in May, told the lawmakers that a three-year plan was being worked on to shift from losses to profits. “We are working to improve the financial reporting in all our activities. We are working on a three-year plan to build the company from one that is making losses to one that is profitable. EDCL is mostly running on the Ministry of Finance budget but we are hoping that, soon, it can also sustain itself,” he said. Top of strategy list of the ‘7.5.2 plan,’ he said, the company will connect the whole country to electricity; in five years, it will connect all the productive users; and in two years, the entire Kigali city. He explained that the mistakes mentioned by the Auditor General were as a result of the confusion caused by splitting of the water utility from energy. “Since 2014, there were many complicated issues as a result of breaking away of WASAC but we would like to let you know that everything is under control right now,” he said. REG and its two subsidiaries; Energy Utility Corporation Ltd (EUCL) and Energy Development Corporation Ltd (EDCL) were incorporated in July 2014 with 100 per cent government shareholding. They are entrusted with energy development and utility service delivery. Action has been taken The AG’s report cited a tender of CashPower meters to a tune of over $700,000, which had never been delivered. However, the committee was informed that this error was rectified and the CashPower boxes were finally delivered and a fine of $78,000 slapped on the supplier. PAC was also told that the price of CashPower meters had significantly reduced, falling to between $50 and $60. The committee demanded to know what action had been taken to fix the issue of high fuel consumption by company cars, but the REG officials said the person who responsible has since been relieved of his duties. Auditor-General Obadiah Biraro, who was present at the hearing, interjected and said the issues in REG are historical, recurring in his annual reports. He advised the new leadership on what to look out for. “Historically, REG has suffered from three things; incompetence, indifference and recklessness. If these are fixed, then we can all move forward,” he said. Company registration Tempers nearly flared during the hearing when, in his explanations, the acting Managing Director of EDCL, Eng. Yves Nshuti, said the company was registered at Rwanda Development Board with value of Rwf1.5 million. PAC chairperson Juvenal Nkusi wondered how long it takes to value a firm. “What? EDCL is valued at Rfw1.5 million? Why is that so? I don’t understand how an entity like EDCL can be valued at [only] Rfw1.5 million as if it’s a second-hand cloths business. It is now three years since the establishment of EDCL. You promised us the last time you were here that this would be fixed, how long does it take to fix this?” he asked. The hearings will end on October 10 and a report of the findings will be delivered to the Plenary by October 23. editorial@newtimes.co.rw

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We’ll turn energy utility into a profit making venture, says REG chief