BY FRANK AMAN
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The allegation was raised at a stakeholder’s meeting over the weekend in Dar es Salaam where the association of political parties without representation in Parliament demanded all gas and electricity contracts be reviewed and capacity charges paid to producers re-calculated.
Among others, the meeting was attended by politicians from the Alliance of Farmers Party (AFP), Chama Cha Kijamii (CCK), Sauti ya Umma (SAU), the Union for Multiparty Democracy (UMD) and Demokrasia Makini (DM).
Chama cha Kijamii (CCK) Secretary General Renatus Muabhi said; “We know Tanesco pays Sh9 billion per month in capacity charges to several companies, even though the latter produce no electricity at all.”
He advised the government to review all related contracts and to also dismiss all cases against IPTL and PAP because according to him, they are ready to reschedule the costs.
Alliance for Farmers Party (AFP) Secretary General Rashid Rai, said the government has failed to give what he described as ‘the right answers on electricity costs which are hurting the people.’
“To date, many people fail to know why electricity costs remain high despite the drop of oil prices in the world market, but government officials lack the right answers,” he said.
Responding, Tanesco Investment Manager Eng Rwabangi Luteganya denied the accusations and maintained that at present, Tanesco is not paying any private company which does not supply electricity to it.
However, he failed to explain the high electricity charges against falling oil prices.
Ewura Acting Director for electricity, Godfrey Chibulunje, said they have started reviewing all power contracts and have also introduced a new system to monitor and regulate all agreements.
He insisted that capacity charges cannot be avoided and that at USD 0.16 per unit, Tanzania has the lowest cost per unit across East Africa.
Notably Uganda has the highest cost at USD 0.19 dollars per unit while Kenya charges USD 0.18 per unit.
SOURCE: THE GUARDIAN
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