The regulatory board of Rwanda utilities and Regulatory Authorities (RURA) on 13rd December 2016, has approved new electricity and rural water tariffs. The new tariffs will become effective on 1st January 2017, the decision aims at increasing the affordability of electricity and rural water services and boost Rwanda’s competitiveness particularly investors into the industrial sector.
For electricity, special consideration has been made for low income earners and the industrial sector. RURA introduced a lifelines tariff which will allow low income households to access electricity at the price of Frw 89/Kwh for 0.15 kwh per month representing a decrease of 51%.
There is also a significant tariff reduction for industrial customers with large industrial paying an energy charge of Frw 83/kwh, medium paying Frw 90/kwh and small industries paying a flat fee of Frw 126/kwh. This represents of 28.34% depending on industrial category.
For rural water, RURA has for the first time established a maximum tariff depending on the type of water system; thus the new maximum tariffs per jerrican has changed for better.
The new tariffs for both electricity and rural water supply reflect the government policy of making social amenities accessible and affordable to the population including the low income groups. These new tariffs also aim at attracting foreign and domestic investment and promoting industrial development in Rwanda.