Electricity tariff policy under review
The Electricity Control Board (ECB) has announced a major modernisation of its regulatory framework, targeting a tariff methodology that has remained largely unchanged for two decades. Speaking at a final validation workshop this week, ECB CEO Robert Kahimise stated that the move is designed to bring transparency and structure to the sector while improving overall cost efficiency.
The overhaul seeks to transition the industry toward a performance-based system. According to Kahimise, the current methodology requires an urgent update to drive operational improvements and ensure the network receives the investment necessary to sustain an evolving energy market.
“We must move towards a structured and transparent system, including multi-year pricing,” Kahimise told stakeholders. “This will allow us to incentivise real operational improvements and manage costs effectively.”
The review is anchored by four primary objectives: ensuring the financial and technical sustainability of the Electricity Supply Industry (ESI), maintaining affordability for socio-economic development, linking tariffs to service quality, and upholding a predictable regulatory process.
Beyond price setting, the ECB is introducing updated Economic Rules to foster a competitive and sustainable industry. These rules are intended to strike a balance between "cost-reflective" tariffs—which ensure the viability of utility providers—and the necessity of consumer protection.
A key component of the new strategy is the formalisation of Net Metering Rules. Kahimise noted that these rules are designed to empower consumers through self-generation, effectively reducing reliance on the national grid while promoting the adoption of renewable energy.
“Together, these instruments form a coherent strategy to steer our industry toward greater resilience, sustainability, and fairness for all stakeholders,” Kahimise said. The ECB expects the integrated drafts to provide the clarity needed to finalise the multi-year review process.
