TANESCO TOLD NOT TO INCREASE TARIFFS

In Summary

Stakeholders call on energy company to fulfil its promise of lowering power charges by 7.9 per cent come 2017

Mwanza. Stakeholders in the Lake Zone regions have opposed Tanesco’s proposal to raise energy cost by 18.19 per cent, only a few months after the charges were lowered by 1.1 per cent.

The stakeholders called on Tanesco to fulfil its promise of lowering the charges by 7.9 per cent come 2017.

Speaking during a meeting to collect views from the public Energy and Water Regulatory Authority (Ewura) Consumer Consultative Council chairman Jerry Mwasa advised the power firm to explore new sources of power in bid to reduce the charges. “Instead of pushing up charges, Tanesco should explore new sources of energy so as to relieve wananchi of the burden and spearhead industrial growth,” said Mr Mwasa.

Ewura CCC acting regional chairman Thomas Mnunguli advised the energy authority to reject Tanesco’s proposal on hiking the charges.

Another stakeholder, Mr Amani Mafura, said even if the cost of electricity production has increased, the power firm should raise charges gradually. He noted that raising power charges by over 18 per cent would increase the cost of living.

Earlier, Tanesco deputy managing director for Electric Supply Kahitwa Bishaija told the stakeholders that hiking energy charges would enable the company to afford production, transportation and distribution costs.

He said despite using natural gas by 58 per cent in 2016 from last year’s 47 per cent, and reducing oil usage by five per cent, the company still faces operation financial cost.

Mr Bishaija, the company’s debt has increased from Sh699.57 billion in December last year to Sh794.48 in September 2016.

He said Tanesco, which has increased production from 988 MHz in 2015 1, 041 MHz this year, with revenue increasing to Sh1, 042.5 billion in 2016 compared to last year’s Sh995.3 billion, is obliged to spend an average of 13 per cent of the monthly income to buy heavy oil to generate electricity.

According to him, new prices consider power generation, transmission, distribution costs per unit which is Sh155.35, Sh23.76 for transmission and Sh107.17 for distribution, thus making a total of Sh286.28 per unit, an increase of 18.19 percent compared to the current Sh242 .21.