The Government of Rwanda has under taken reforms in the energy and water sector which have been concretized by the separation of energy from water operations. The main objectives being; to have sector focused and efficient operations; attract more investment; improve planning and accountability; and increase access to services by the population to drive sector performance towards the targets envisaged in the EDPRS II and other national goals.
To this end, Government adopted the corporatization model as a vehicle to implement the required reforms. The law repealing EWSA Law of 97/2013 of January 31, 2014 paved the way for the creation of two corporate entities which were subsequently incorporated in July 2014 with 100% government shareholding. The Rwanda Energy Group Limited (REG Limited) and its two subsidiaries; The Energy Utility Corporation Limited (EUCL) and The Energy Development Corporation Limited (EDCL) entrusted with energy development and utility service delivery while the Water and Sanitation Corporation (WASAC) has the mandate to develop and operate water and sanitation infrastructure and deliver related services in the country.
The Rwanda Energy Group Limited was incorporated to expand, maintain and operate the energy infrastructure in the Country through its two subsidiaries the Energy Utility Corporation Limited (EUCL) and the Energy Development Corporation Limited (EDCL). The objective of creating these subsidiaries amongst others was to ensure focused attention to enhancing efficiency in utility operations on one hand and ensure more timely and cost efficient implementation of development projects on the other. Moreover the REG holding structure provides the overall coordination and ensures effective development of energy and investment plans.
Overall the group structure is aimed to ensure the autonomy and efficiency of the EDCL and EUCL.
REG Holding, the group is supervised by one Board of Directors and therefore by design, the subsidiaries while being independent corporate entities are under the purview of the REG Board. The Board sets the strategic agenda and the CEO ensures that this is achieved by the subsidiaries through the development and implementation of appropriate Business Plans. The organization structure of REG Holding has been designed with a philosophy that the holding is a coordination and monitoring organ of the group.
The Holding ensures the effective implementation of Government policies, monitoring the execution of strategic plans; improvement of service delivery and effective project execution by the subsidiaries. It also plays a coordination role to ensure the smooth interrelationships of the two subsidiaries. The Holding has no operational responsibilities and will not participate in the day-to-day decisions of the subsidiaries thus enabling it effectively play of the oversight responsibility.
The Holding will also play strategic external stakeholder relationships with the Ministry of Infrastructure on policy and sector matters, Ministry of Finance with respect to the financing arrangements for investments and subsidies, the Rwanda Utility Regulatory Authority (RURA) on wider and compliance issues of the EUCL and EDCL.
The Energy Utility Corporation Limited (EUCL) was incorporated to have devoted attention in providing energy utility services in the Country through operations and maintenance of existing generation plants, transmission and distribution network and retail of electricity to end-users. In executing its mandate, the Company will strive to achieve;
a) Optimized generation capacity and economic plant dispatch to meet short and long-term energy supply requirements,
b) Enhanced operational efficiency (progressive system loss reduction, billing and collection efficiency, network reliability and high quality of service),
c) Improved customer service, and
d) Network growth and increased connections within the foot print of electrified areas thereby making an effective contribution to the EDPRS targets.
The Company has four main processes feeding into the core business; Policies planning, Marketing planning and development, Distribution planning and development within already electrified areas and Operation & Maintenance of Power Plants and Transmission & Distribution Networks owned by the Utility. The utility will also play a key role in the execution of Power Purchase/Power Sales Agreements with IPPS and other regional utilities for import and export.
The Energy Development Corporation Limited (EDCL) was incorporated to have devoted attention to;
a) Increasing investment in development of new energy generation projects in a timely and cost efficient manner to expand supply in line with EDPRS and other national targets,
b) Develop appropriate transmission infrastructure to evacuate new plants and deliver energy to relevant distribution nodes; and
c) Plan and execute energy access projects to meet the national access targets.
This ring-fenced approach to development is designed to enhance accountability of development resources with the various stakeholders while at the same time opening space for increased private sector participation.