Rwanda Energy Group (REG) has clarified on reports which suggested that residential houses get a bonus when they buy electricity in the early dates of every month or when they buy electricity in bulk. Rather, it says that, once a month every residential house benefits from subsidized tariffs when they buy electricity on any date of the month. On an annual basis, the government provides a subsidy amounting to Rwf10.5 billion to consumers. The current electricity tariffs were set0n January 21 2020 and reviewed by RURA David Karangwa, an official in the Commercial Department at EUCL -REG explained that starting from 15 units of electricity and below, consumers benefit from the lowest tariffs. This, he said, is to ensure that vulnerable or poor households -who consume less electricity and have little money to buy it – may afford electricity tariffs. However, he said all residential customers of electricity benefit from this reduction (lowest tariffs) on the first 15 units they buy but when they exceed buying over 15 units, the tariffs increase as they are considered as financially capable to pay. “Every residential house benefits -once a month- from reduction (subsidy) of electricity tariffs on the first 15 units they buy. Whether you buy them at the beginning of the month, the middle or the end. It doesn’t require buying on an early date or in bulk,” he explained. The subsidy is divided into three stages meaning 15 units and below, from over 15 units to 50 units and from 50 units to above and each stage has its own tariffs. Subsidy on the first 15 units and below means a residential customer pays only Rwf89 per unit and when they buy over 15 units, the subsidy decreases (tariffs increase). For instance, between 15 units to 50 units, they pay Rwf212 per unit with VAT inclusive. REG explains that when it is over 50 units, they pay Rwf249 per unit VAT inclusive. To cut the long story short, it means even someone who buys a lot of units still benefits from the subsidy but in three stages. “If a residential customer buys 200 units in total, the first 15 units of them are subsidized with Rwf89 per unit, and from over 15 units to 50 units which means 35 units, they pay Rwf212 per unit. And over 50 units to the remaining Rwf150 units, they pay Rwf249 per unit. It is an automatic calculation,” REG says that for non-residential houses, the subsidy is low because they pay. Access to electricity was at 52.8 percent or 1.4 million households by the end of 2019. That means 38.8 percent of households were connected to the national grid while 14.3 percent were connected to off-grid solutions such as solar home systems and mini-grids. There is a target of connecting all 3.8 million households by 2024 which requires $1.5 billion (Rwf1.4tn). This means there remains with connecting 2. 4 million households. To facilitate this universal access to electricity in the country, the utility firm will need to generate 556 megawatts. The plan is by 2024 to have 52 percent of households connected to national grid while 48 percent will be connected to off-grid solutions.
