Talks continue on power tariffs
Tanzania Electric Supply Company technicians are at work. PHOTO|FILE
What you need to know:
Tanesco public relations manager Adrian Severin told The Citizen that the talks were aimed at deciding whether to reduce or increase the tariffs, depending on the cost of electricity production.
Dar es Salaam. The Tanzania Electric Supply Company (Tanesco) has said that it is currently in talks with the Ministry of Energy and Minerals to review power tariffs.
Tanesco public relations manager Adrian Severin told The Citizen that the talks were aimed at deciding whether to reduce or increase the tariffs, depending on the cost of electricity production.
“After finalising the talks and completing our analysis on the production costs and the coming of the gas, then we will come to a decision,” he said.
He explained that there were a lot of things to be considered during the analysis including looking at the depreciation of the dollar against the shilling.
He said the cost of fuel would also be taken into consideration since many plants use fuel for production.
Such plants are expensive to run and ultimately increase the production cost.
“We are a public entity working for the people and although we don’t want to increase tariffs, we cannot operate at a loss. So if the analysis shows that the cost of production is high we will increase the power tariffs,” he said.
According to him, Tanesco is also producing electricity from gas and that is why it is imperative to propose new cost of electricity.
When Tanesco submits its proposal it will be considered by the ministry, the Energy and Water Utilities Regulatory Authority (Ewura) and the Ewura Consumer Consultative Council and could take about two months before coming to a decision.
Ewura principal communication officer Titus Kaguo said the Tanesco proposal was awaited for consideration.
“Once the proposal is submitted we will consider it prudently. We are in no position to refuse their request without going through the evaluation as obviously they might lead to an increase in tariffs,” he said.
He stressed that Ewura could only make a decision based on the analysis and evaluation from Tanesco.
Late last year, Energy and Minerals minister Sospeter Muhongo issued a directive to Tanesco, Ewura and the Tanzania Petroleum Development Corporation to facilitate the lowering of electricity tariffs effective January 1 this year.
