|
What are rates and charges?
Rates refer to price schedule (tariff) of goods or services rendered by service providers. Charges refer to associated costs of goods and/or services.
What are EWURA’s mandates to regulate rates and charges?
Section 17 of Cap 414, obliges EWURA, subject to sector legislation and licences granted, to carry out regular reviews of rates and charges. EWURA is responsible for regulating rates and charges of goods and services provided by service providers in electricity, and water and sewerage. In the case of petroleum and natural gas sectors, EWURA reviews the rates and charges of processing, transmission and distribution services.
Why regulate rates and charges?
Regulation of rates and charges of goods and services is aimed at achieving financial sustainability and improving energy and water services, by reducing per unit costs and setting reflective tariffs levels, implementing adequate billing and collection, and adjusting tariffs. EWURA analyzes the financial position of energy and water sector utilities; determines revenues requirements to operate; reviews rates that achieve objectives; implements subsidy programmes that effectively target the low income and disadvantaged consumers; and develops transparent processes for reviewing rates and charges.
What aspects to consider?
In determining applicable rates and charges, or method for regulating rates and charges, EWURA considers a number of things, including but not limited to, the costs of making, producing and supplying the goods or services, the return on assets in the regulated sector, any relevant benchmarks including international benchmarks for prices, costs and return on assets in comparable industries, the financial implications of the determination, the consumer and investor interests, the desire to promote competitive rates and attract market and any other factors specified in the relevant sector legislation.
Are the orders published and gazetted?
EWURA ensures publication in the Government Gazette, of all its Orders with respect to rates and charges pursuant to the requirements of Cap 414.
|
|