Tanzania’s power tariff cheapest in East Africa, Parliament told

Dar es Salaam. The Deputy minister for Energy, Judith Kapinga, has said the cost of electricity in Tanzania is cheaper compared to the rest of East African countries due to the government's subsidy on the costs incurred by consumers.

Ms Kapinga made the remarks on Friday, August 30, 2024, while responding to questions from Members of Parliament who had wanted to know as to whether the commencement of electricity production at the Julius Nyerere Hydro Power Project (JNHPP) would reduce power costs and whether the government was considering lowering electricity charges.

"Honourable Speaker, the current electricity price already includes government subsidies, with the average subsidised rate being Sh100 per unit for ordinary users of up to 75 units per month as compared to Sh292 per unit without government subsidy,” she told Parliament in Dodoma.

Further, she said a consumer utilising more than 75 units is charged Sh292 per subsidised unit instead of Sh320 without subsidy.

According to her, the government will continue to regularly assess service provision costs by the Tanzania Electric Supply Company Limited (Tanesco) based on the cost of power production, transportation, and distribution.

Regarding the power connection in the Chunya mines, Mbeya Region, Ms Kapinga instructed the Rural Energy Agency (REA) director general to oversee the contractor to ensure prompt completion of the project.

She said the construction of a substation in Hanang, Manyara Region, will be implemented in the second phase of the robust grid project.

Discussing the extension of grid electricity to island areas, Ms Kapinga said Tanzania had approximately 120 islands, and the government had begun carrying out a feasibility study to extend the power grid to those areas.

She said the government has provided a 50 to 55 percent subsidy to ensure residents had reliable electricity, noting that currently, the islands were using solar power.