Electricity tariffs have remained unchanged for five years, despite fluctuations in global market prices and the rising value of the US dollar. Access to electricity has steadily increased, reaching 85 percent of households in 2025 compared to less than 2 percent in 2000.
Although the Cabinet was informed that tariff revisions are planned to support the continued expansion of electricity access, it is not yet clear whether prices will increase or decrease.
However, tariffs are likely to go up, given that they have remained unchanged for five years while the US dollar has appreciated significantly.
In 2020, the US dollar was valued between 955 and 990 Rwandan francs, whereas today it stands at 1,445 francs, representing a significant increase.
The rise in the dollar is particularly important in the electricity business because the Rwanda Energy Group (REG) settles payments to electricity investors in dollars.
As the value of the dollar increases, the cost of purchasing electricity also rises. REG typically procures electricity from independent producers, including those generating power from sources such as peat, methane gas, and others, to supplement its own generation capacity.
According to the 2023 report by the Office of the Auditor General, the Energy Utility Corporation Limited (EUCL) spent over Frw 162.2 billion to purchase 861,713,116 kWh of electricity.
The report also revealed that EUCL had accumulated losses of approximately Frw 126.39 billion by that year, with 53.4 billion loss by June 2023 before tax payments, and Frw 31.3 billion in 2022.
REG has frequently faced losses, partly due to buying electricity at high costs and selling it at what it considers low tariffs. The authority emphasizes that these losses, resulting from purchasing electricity at high prices but selling it at lower rates, must be addressed to continue the goal of achieving 100 percent electricity access for Rwandans.
On the other hand, REG customers have expressed concern that electricity prices remain high, despite being unchanged for five years.
The Rwanda Utilities Regulatory Authority (RURA) is responsible for setting tariffs that balance the interests of the public with those of REG as the electricity provider. It is expected that electricity tariffs may increase, although consultations are ongoing to assess how adjustments could affect both consumers and the utility.
Electricity prices are generally set for households, non-residential buildings, small industriesâ€"including water treatment plants, water pumping machinery, and telecommunications towersâ€"and larger industrial consumers.
RURA last announced new electricity tariffs in 2020, and these were based on the type of user and the level of consumption. At that time, the lowest rate applied to households using less than 15 kWh per month, charged at Frw 89 per kWh.
For households consuming 15 to 50 kWh, the rate increased by 16 percent, from Frw 182 to Frw 212 per kWh. Non-residential buildings consuming up to 100 kWh saw tariffs rise from Frw 204 to Frw 227, while consumption above 100 kWh increased from Frw 222 to Frw 255.
Small industries' tariffs rose from Frw 110 per kWh to Frw 134 , medium industries from Frw 87 to Frw 103 s, and large industries from Frw 80 to Frw 94 per kWh.
While electricity tariffs may rise, the government considers measures to reduce industrial electricity costs to promote industrial development and attract new investment, enabling Rwanda to remain competitive in the regional market.
IGIHE
