THE MINISTER FOR ENERGY AND MINERALS, PROF. SOSPETER MUHONGO DENIES SUPPORTING REVOKED POWER TARIFF HIKE

The Minister for Energy and Minerals, Prof Sospeter
Muhongo.

The Ministry of Energy and Minerals has rubbished reports in some local newspapers claiming that the Minister for Energy and Minerals, Prof Sospeter Muhongo, had agreed on the hiking of electricity tariffs at a meeting with a World Bank delegation on September 28, last year.

A statement issued by the ministry yesterday explained that the meeting in question was a continuation of meetings by the government and the Bretton Woods institution to secure 200 million US dollars for strengthening of the Tanzania Electric Supply Company (Tannest).

“The Ministry of Energy and Minerals has been conducting meetings with various stakeholders including public and private institutions as well as development partners and financial institutions with the aim of encouraging investments in the energy and mineral sectors,” the statement said.

According to the statement, the ministry had on the material day conducted the meeting with the World Bank delegation, which was also attended by other stateowned entities.

Institutions present at the meeting were the Rural Energy Agency (REA), State Mining Corporation (Stamico), Tanzania Petroleum Development Corporation (TPDC), in addition to the National Development Corporation (NDC) and the Energy and Water Utilities Regulatory Authority (EWURA).

“The main issues discussed during the meeting included availability of adequate, reliable and affordable electricity that would act as a catalyst for economic growth through industrialisation, agriculture and trade.

“It as well dwelt on improving efficiency of the state-owned power utility and how to reduce its debt,” the statement read in part. At that time, Tanesco had debts amounting to 363 million US dollars (about 800bn/-) and the ministry was looking at the possibility of securing 200 million dollars from the World Bank to improve the efficiency of the power utility.

“There was no discussion on hiking power tariffs as it has been reported by
some newspapers,” the statement explained. According to the statement, the ministry is still engaging several development partners including the African Development Bank (AfDB), European Union (EU) and Japan International Cooperation Agency (JICA) on securing funds to boost the energy sector.

EWURA had on December 30, last year, announced an increase of power tariff by an average of 8.5 per cent; the new rates were scheduled to commence on January 1, this year.

However, a day after the announcement Minister Muhongo revoked the proposed electricity tariffs and ordered EWURA to shelve the planned increase in the cost of power supply.

Prof Muhongo said then that the new tariff structure would not take effect until the government receives and reviews a formal report on the matter from the industry regulator.

Daily News