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REFIT

Belgian-Mozambican exchange
        5 March 2012
Content

1.   Benchmarking of REFIT
2.   Budget execution;
3.   Studies and tenders ongoing;
4.   Chalenges
Regional Tariff benchmarking
•   The benchmark revealed that Rwanda has amongst the highest electricity tariffs
    in the region
     – Ordinary customers pay FRW 112 plus VAT = 132 FRW per kWh (22
       USc/kWh)
     – Some industrial customers pay FRW105 plus VAT = 123.9 FRW per kWh (21
       USc/kWh)
•   East African tariffs are lower
     – Kenya approximately FRW 90 (16 USc/kWh)
     – Uganda approximately FRW 100 (17 USc/kWh)
•   Southern African tariffs are much lower
     – 2005-07 study FRW 20-60 (3-10 USc/kWh)
CdC 16 du 08/03/2011   4
Comparisons with 10 other countries

US cents/ kWh including taxes                                            Social LV                LV residential

30
                                                                         Commercial LV            Industrial LV


                                                                         MV
25




20




15




10




 5




 0
         Egypt           Kenya   Lesotho   Malawi   Morocco   Tanzania   Tunisia         Uganda            Rwanda
Key findings of regional review

• Ten countries reviewed have at least four tariff categories
   – Rwanda has only two
• Utilities invariably have a residential category
• All utilities categorise their customers by voltage of supply or
  small/large
Estimated marginal costs for alternative
consumer categories, 2012
REFIT
• Consensus on REFIT for Hydro projects
 H:MOZAMBIQUEREGULATIONS_ON_FEED_TARIFFS_HYDRO_POWER_PLANTS.pdf




                                     CdC 16 du 08/03/2011           8
• The end




            CdC 16 du 08/03/2011   9

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Btc for ewsa 01_08_2011

  • 2. Content 1. Benchmarking of REFIT 2. Budget execution; 3. Studies and tenders ongoing; 4. Chalenges
  • 3. Regional Tariff benchmarking • The benchmark revealed that Rwanda has amongst the highest electricity tariffs in the region – Ordinary customers pay FRW 112 plus VAT = 132 FRW per kWh (22 USc/kWh) – Some industrial customers pay FRW105 plus VAT = 123.9 FRW per kWh (21 USc/kWh) • East African tariffs are lower – Kenya approximately FRW 90 (16 USc/kWh) – Uganda approximately FRW 100 (17 USc/kWh) • Southern African tariffs are much lower – 2005-07 study FRW 20-60 (3-10 USc/kWh)
  • 4. CdC 16 du 08/03/2011 4
  • 5. Comparisons with 10 other countries US cents/ kWh including taxes Social LV LV residential 30 Commercial LV Industrial LV MV 25 20 15 10 5 0 Egypt Kenya Lesotho Malawi Morocco Tanzania Tunisia Uganda Rwanda
  • 6. Key findings of regional review • Ten countries reviewed have at least four tariff categories – Rwanda has only two • Utilities invariably have a residential category • All utilities categorise their customers by voltage of supply or small/large
  • 7. Estimated marginal costs for alternative consumer categories, 2012
  • 8. REFIT • Consensus on REFIT for Hydro projects H:MOZAMBIQUEREGULATIONS_ON_FEED_TARIFFS_HYDRO_POWER_PLANTS.pdf CdC 16 du 08/03/2011 8
  • 9. • The end CdC 16 du 08/03/2011 9