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Tanzania: Government keen to trim electricity tariffs

According to the Tanzania Daily News, Dr Medard Kalemani, deputy minister for energy and minerals, made the statement while addressing parliamentary members at the National Assembly last week, whereby he mentioned that the Energy and Water Regulatory Authority (EWURA) is eager to lower electricity costs.

“The government will keep trimming electricity tariffs. EWURA continues to review the tariffs with a view to lowering them,” Kalemani said.

It is reported that the deputy minister was responding to a question posed in the House by one of the members, who wanted to know the criteria EWURA used to set up power tariffs and if there was any relief for customers who are connected to high voltage, being 11 kV, 33 kV and 132 kV.

Daily News reported that according to Kalemani the relief that high voltage customers have now is low energy charges compared to lesser consumers, especially household consumers. He said the relief was resulting from the costs of supplying electricity and the power loss ending at the HV and MV, that being 220 kV, 132 kV, 66 kV, 33 kV and 11 kV systems.

In April, EWURA announced the deduction of electricity tariffs to household consumers. The prices went down from  between 1.5 to 2.4%, depending on the category of consumers.

EWURA to look into electricity tariffs

Earlier this year, public power utility Tanzania Electric Supply Company (TANESCO) had presented a proposal to decrease electricity average tariff by 1.1% from TZS274.9/kWh ($0.125) to TZS272.00/kWh ($0.124) effective from 1 April 2016 and further cut tariff to 7.9% from January 2017.

However, the proposal for 2017 will only be reviewed in August this year by the energy and water regulatory body, of which the time frame is said to be the same as when the Mtwara gas pipeline will be handed over to the government.

The media reported that Kalemani explained that there are five electricity consumer groups, namely D1, which involves the lowest consumers using up to 75 units; T1, above 75 units; T2, medium industries using more than 7,500 units and T3, those connected to medium and high voltage and buying electricity in bulk.

He stated that small consumers in the D1 category pay TZS100 per unit ($0.045), while T1 consumers pay TZS292 per unit ($0.133), down from TZS298 per unit  ($0.136). Medium industries in category T2 pay TZS195 per unit ($0.089); category T3-MV pay TZS157 per unit ($0.071), while T3-HV purchase each unit at TZS152 ($0.069).

Homepage image credit: sandc.com

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.