Africa: Tanzania’s Tanesco Bid To Raise Tariffs Hits Setback


The Energy and Water Regulatory Authority-Consumer Consultative Council (Ewura-CCC) has opposed a bid by the Tanzania Electric Supply Company Limited (Tanesco) to raise power tariffs by 18.19 percent.
Mr Aman Mafuru, an official of CCC, speaking during a public meeting to collect views on the proposals urged the energy regulator to reject Tanesco’s move because there was no strong justification for the increase.
According to him, the state power company is arguing that it wanted to raise tariffs after it failed to acquire a bank loan to improve its infrastructure.
However, Mafuru said, Tanesco had not explained why they failed to acquire the loan. He also argued that the power utility failed to provide a breakdown of the costs of producing one unit of electricity.
He said: “In April, Ewura accepted Tanesco’s request to lower power charges by 1.1 percent per a unit, but today they want to hike it by 18.19 per cent, just eight months after they lowered it; this is unacceptable.”
He warned that by increasing power charges Tanesco was undermining President John Magufuli’s resolve to push for an industrial economy.
Mafuru said raising power tariffs could also scare away investors.
Ewura conducted public meetings for one week in Mwanza, Mbeya, Arusha and Dodoma.
The majority of stakeholders who attended the meeting strongly opposed the proposal on grounds that it could raise the cost of living.
In April this year, Ewura blocked a 7.9 percent electricity tariff reduction plan by Tanesco.
Speaking during yesterday’s meeting, Ewura’s director general Felix Ngamlagosi urged stakeholders, who failed to attend the public hearing to submit their opinions to the regulator’s office or send them to the authority’s postal address.

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