New power tariffs favour factories

Factories operating at night are set to benefit from revised electricity tariffs. According to the new tariffs, which will become effective May 1, industries operating between 11p.m and 7a.m will be charged Rwf 80 /KWh as opposed to the previous charge of 105/KWh.“We want to encourage factories to work overnight. That is why we have reduced the tariff, which we evaluated after consultation with many industrial heads and the Private Sector Federation,” Felix Gatanazi, the Acting Head of Commercial Unit at Energy Water and Sanitation Authority, (EWSA) noted in an interview.EWSA statistics indicate that factories use 30 per cent of Rwanda’s total electricity consumption.Gerard Mukubu, the Director of Advocacy at PSF, welcomed the move observing that high electricity tariffs have been a hindrance to the productivity of industries.“There are some factories that are on the verge of closing shop due to high costs of production, particularly, electricity costs. We expect this new billing to give them some comfort as they perform their business,” Mukubu said.However, EWSA announced it had increased tariffs to 140kWh for those operating between 5 and 11p.m.EWSA explained that the increase resulted from high electricity demand during those hours.“5 to 11p.m are peak hours where electricity is consumed at a high rate and yet our resources are limited,” Gatanazi explained.“Generating power during the peak load period is very expensive and if we can incentivise the industrial customers to consume less during these periods, EWSA can realise substantial savings in electricity generation cost.”

National

New power tariffs favour factories