Ewura endorses power tariff hike

BY CORRESPONDENT DAVID

24th December 2013

 

  They become effective next month

Energy and Water Utilities Regulatory Authority (Ewura)

Energy and Water Utilities Regulatory Authority (Ewura) yesterday approved the Tanzania Electric Supply Company’s request to increase electricity tariffs from 60/- to 100/- per unit for ordinary domestic users with effect next month.

Ewura Director of Regulatory Economics, Felix Ngamlagosi announced the changes in Dar es Salaam yesterday directing the state-run utility –Tanesco to use least cost merit order in the production of electricity.

Ewura warned that it would amend the tariff adjustments if Tanesco failed to oversee implementation of various projects to improve power production.

The Authority also required Tanesco to present a monthly report showing the actual electricity production plan and ensure electricity production tenders are issued according to the needs stipulated in the national power system master plan.

Addressing a press conference, the director said the decision to endorse the tariffs was reached after a consultative meeting by Ewura’s Board of Directors.

Tanesco lodged the tariff adjustment proposal early this month, but the Authority had to verify their demands before coming up with recommendations.

“The tariffs are applicable with effect from next January and will expire in three years to come. But due to price fluctuation, availability of subsidy from the government and the change of oil prices, the tariffs will be readjusted,” he said.

Ngamlagosi said his office conducted analysis over the financial position at the state-run utility firm and discovered that the company lost 47.3bn/- in 2010 and 223.4bn/- last year.

The losses contributed to the company’s failure to clear up its short and long term debts that had risen to 456.8bn/- by November this year.

Ewura is confident that the cost reflective tariff and access to soft loans and/or securing subsidy from the government would apparently clear the alarming Tanesco debts.

Ewura also approved an 85/- increase per unit for the group of big domestic users (small businesses, mills machines, traffic lights and billboards) raising the tariff to 306/- from 221/-instead of 331/- proposed by Tanesco.

Power subscribers whose demands exceed 7,500 units, will now pay 205/- per unit from the current price of 132/- per unit (up by 73/-, instead of the proposed 145/-).

For large scale power consumers (T3-MV) including large industries connected to the medium voltage, Ewura has approved 166/- per unit from 121/-; an increase of 45/- instead of 148/- proposed tariff by Tanesco.

The approved price for the group of customers connected to the high voltage which uses 66,000 units and above (T3-HV) is 159/- from 106/- per unit equivalent to an increase of 53/-, Tanesco had asked for the increase of 80/- per unit. This group comprises Zanzibar Electric Company (ZECO), Bulyanhulu gold mine and Twiga Cement.

Meanwhile, regarding to the possibility for natural gas power generation, Ewura plans to carry out a research to establish the actual cost of electricity service in 2015. 

SOURCE: THE GUARDIAN