Tanzania: Report on Power Tariff Cut Out Soon

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The Energy and Water Utilities Regulatory Authority (EWURA) is set to finalise and present a report to the public on the recommendations of lowering power tariffs as directed by the government and other stakeholders at the end of this month.

EWURA Director General Felix Ngamlagosi made the revelation in Dar es Salaam yesterday during a public hearing on the proposals that were presented by Tanzania Electric Supply Company (Tanesco) to lower power tariffs.

“We are hoping to present to members of the public a report in connection with the recommendations at the end of this month,” he said, adding that the regulatory body is evaluating the recommendations and various views presented by stakeholders before making the report public by the end of this month.

Tanesco had asked EWURA through the proposals to approve a power tariff reduction of 1.1 per cent effective April 1, this year and a further cut of 7.9 per cent next year.

Other recommendations include getting rid of the 5,520/- charged monthly as service charge for household customers, a 5,000/- fee charged for electricity application form and service line connections fees.

Mr Ngamlagosi said that the company’s (Tanesco) recommendation comes following the reduction of oil prices in the world market as well as in the country’s market, abolition of emergency power plant production system and availability of enough water power production in dams. According to the views presented by Ewura Consumer Consultative Council (EWURA- CCC), the 1.1 per cent reduction on the power tariff was still low.

The council called for further reductions considering the volume of power production in the country.

“The percentage proposed (1.1 per cent) is still low, considering the factors behind the reductions of the tariffs compared to the past year (2013) when the regulatory body approved the power tariffs,” said the Acting Chairman of EWURA-CCCM, Eng Thomas Mnunguli.

He said if the proposal (1.1 per cent) is approved, the power tariffs would continue be high by 38.01 per cent compared to the rates that prevailed in 2013.

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