Rwanda could Cut Power Tariffs by 50%

Rwandans could see power tariffs reducing, if all efforts go in accordance with the additional power generation anticipated from the diversification of energy sources.

Energy Development Corporation Ltd, a subsidiary of Rwanda Energy Group Ltd, has proposed to review the present electricity tariff structure of both domestic and industrial users.

The proposal is based on a combination of increasing generation capacity, diversification of energy sources, reducing the proportion of thermal power in the energy mix and negotiating better feed in tariffs, The East African reports.

The managing director at the Energy Development Corporation Ltd, Emmanuel Kamanzi, said: “We have substantially increased electricity generation. Therefore, there is a need to make power affordable for domestic and industrial users.”

It is reported that the government hopes to realise a 50% drop in power tariffs due to energy from cheaper sources that are feeding into the grid.

If the new electricity tariff structure succeeds, manufacturers in Rwanda could pay an average $0.12/kWh, a sharp drop from the current average tariff of $0.24/kWh.

Source: ESI Africa

 

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