Electricity prices are too low!!! Umeme bei ni ya chini sana! The core problem is that Tanzania has the view that all government companies are mean't to provide very cheap services by using tax payer money to SUBSIDIZE the cost. Tanzanians don't mind because they THINK they don't pay taxes its only those big companies. However, the government to keep TANZANIANS happy forced TANESCO to keep electricity prices very low by world standards and in turn did not subsidize the cost by giving the money to build power plants. So as the old power plants giving essentially free electricity became insufficient there was little money for TANESCO on its own to build power plants. It has to go to government which in the past was not willing. $400 million is alot of money. And donors were not giving money as they were unsure if TANESCO would get privatized. For all you people out there who are not clear let me explain privatization. It means that the government sells TANESCO to a private company so that it can RAISE prices (No one can then blame the government for raising prices, it will just say we have no control). And then charge Tanzanians what it costs to build power plants, generate electricity, and make a very nice PROFIT. "Only when one comes to the details does the problem come up more clearly, for instance that Tanesco uses 70% of its income for purchasing the gas, paying the capacity charge and electricity for Songas alone, an untenable financial matrix." Home TANESCO PRICE @7 cents per KWH Due to Comments I am adding a U.S. study comparing cost per MWH for various types of power sources. In the study they include construction cost, financing cost, and fuel cost and divide everything over the life of the plant. Note profit is not included. To get the price in KwH divide by 1000. http://en.wikipedia.org/wiki/Relative_cost_of_electricity_generated_by_different_sources Umeme bei ni ya chini sana! Tatizo la msingi ni kwamba Tanzania ina maoni kuwa makampuni yote ni mean't serikali kutoa huduma nafuu sana kwa kutumia walipa kodi fedha kwa ajili ya kufidia gharama. Watanzania hawana akili kutokana na kudhani kwamba si kulipa ushuru wa makampuni hayo tu kubwa. Hata hivyo, serikali kuhifadhi WATANZANIA furaha kulazimishwa TANESCO kuweka umeme bei ya chini sana kwa viwango vya dunia na kwa hiyo hakuwa na ruzuku ya gharama kwa kutoa fedha ya kujenga mitambo ya nguvu. Kwa hiyo kama zamani mitambo ya kutoa umeme kimsingi bure akawa haitoshi kulikuwa na fedha kidogo kwa ajili ya TANESCO yenyewe ya kujenga mitambo ya nguvu. Ina kwenda kwa serikali ambayo katika siku za nyuma hakuwa tayari. $ 400,000,000 ni fedha nyingi. Na wafadhili walikuwa hawatoi fedha kama walikuwa uhakika kama TANESCO bila kupata yaliyobinafsishwa. Maana watu wote wewe huko nje ambao ni wazi napenda kuelezea ubinafsishaji. Ina maana kwamba serikali anauza TANESCO kwa kampuni binafsi ili iweze kuongeza bei (Hakuna mtu anaweza lawama serikali kwa ajili ya kuongeza bei, itakuwa tu kusema hatuna udhibiti). Na kisha malipo Watanzania nini gharama ya kujenga mitambo ya nguvu, kuzalisha umeme, na faida nzuri sana. "Ni wakati tu moja anakuja na maelezo haina tatizo kuja wazi zaidi, kwa mfano kwamba Tanesco anatumia 70% ya mapato yake kwa ajili ya ununuzi wa gesi, kulipa malipo uwezo na umeme kwa ajili ya Songas peke yake, halikubaliki ya fedha ya tumbo."