New power tariff to hit big customers only, says Tanesco

MAUREEN ODUNGA

AMID the hue and cry by electricity customers on the recent announcement by the Tanzania Electric Supply Company (TANESCO) to hike tariffs, the utility firm’s Managing Director, Engineer Felchesmi Mramba, has said that the changes will not affect ordinary customers, citing the global trend in the rise of oil prices as a factor.

Eng Mramba told reporters in Dar es Salaam yesterday that last year had marked a decrease in fuel prices as per global market trend, which has not been the case this year. The increase in fuel prices for this year had led to the Energy and Water Utilities Regulatory Authority (EWURA) to hike oil prices in the country.

Power tariffs are dictated by fluctuations in the running costs; for instance, to run a plant like IPTL, it requires over 1bn/- per day,” Eng Mramba explained.

Commenting on media reports that TANESCO is undergoing bankruptcy and needed 5 trillion/- or else it faces an imminent collapse as well as incurring huge debts amounting to 700bn/-, he said the company had registered notable achievements, particularly in the investment of major electricity projects and infrastructure.

He cited the Controller and Auditor General (CAG) report for the year 2014/2015, which showed that TANESCO had over a long period of time obtained a gross profit of 186bn/- and an operating profit of 263bn/- from a gross loss of 496bn/- in the year 2013.

Along with that, power losses have gone down from 21 per cent in 2012 to 17 per cent in the current year. On the other hand, the country had gone through power outages totalling to 300 megawatts, whereas areas such as Mwanza, Arusha and Kilimanjaro were hit badly.

Eng Mramba also quoted the recent report issued by the Governor of the Central Bank, which had pointed out that electricity played a vital role in the economy of the country due to its reliability by 14 per cent. “The company’s assets have increased from 3.8 trillion/- in 2013 to 5.2trillion/- in 2014, which is equivalent to 36.8 per cent.

In 2012, the number of customers provided with electricity meters was by 60 per cent, in the current year the number has gone up to 96 per cent. “We anticipate reaching the remaining four per cent by March 2017, this in turn will lead to achieving Tanzania’s dream of becoming an industrialised country,” noted Eng Mramba.