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Tanesco applies for steep tariff increase
By Lydia Shekighenda
19th November 201
Power tariffs for domestic consumers are likely to increase from the current 195/- per unit to 497/- if the Energy and Water Utility Regulatory Authority approves adjustments requested by Tanzania Electric Supply Company (Tanesco).
According to a statement availed to 'The Guardian' yesterday in Dar es Salaam by Ewura Director General Haruna Masebu, the power utility firm is requesting for approval of an average tariff increase of 155 per cent of the current power rates.
The statement said Tanesco's request to increase power tariffs on an emergency basis is due to the emergency power efforts which have significantly increased the utility's operational costs.
According to Tanesco proposals, the domestic low usage, which includes an energy charge of 0-50kWh, will increase from 60/- to 153/- per unit while energy charges above 50kWh will shoot up to 497/- from 195/- per unit.
The Ewura statement said that, according to the application, Tanzania experienced poor rains in the catchments in 2010 and 2011 which negatively impacted hydroelectric power generation.
As a result, the country experienced an acute shortage of power which affected Tanesco's financial stability.
The statement said the power utility entered into an interim agreement to buy power from IPTL to supply 100MW using heavy fuel oil (HFO).
It signed another pact with Symbion LLC to generate 112MW (75MW gas-fired); and with Aggreko to supply 100MW using gas oil.
According to the statement, Tanesco has procured its own dual fuel-powered plant of 150MW and an HFO-fired plant of 70MW. With the exception of the firm's power plants which will be operational in 2012, the emergency rental power plants owned by Symbion and Aggreko are already operational and have considerably reduced power-rationing in the country.
Masebu said that, in accordance with Paragraph 15 (1)(3) of the Tariff Application Guidelines of 2009, the minister responsible for energy who, in principle, supports Tanesco's current application, has to issue a certificate of urgency for Ewura to expedite the approval process of an application.
The statement said Ewura received such certificate from the minister on November 11, 2011. Consequently, the regulator is reviewing Tanesco's application on an urgency basis, which calls for issuance of a provisional order to be issued after a limited public consultative process.
He said Ewura has arranged a public hearing of Tanesco's application to be held on December 2, this year, with a view to establishing the reasonableness or otherwise of the requested tariffs, which are proposed to come into effect from January 1, next year.
SOURCE: THE GUARDIAN
By Lydia Shekighenda
19th November 201
Power tariffs for domestic consumers are likely to increase from the current 195/- per unit to 497/- if the Energy and Water Utility Regulatory Authority approves adjustments requested by Tanzania Electric Supply Company (Tanesco).
According to a statement availed to 'The Guardian' yesterday in Dar es Salaam by Ewura Director General Haruna Masebu, the power utility firm is requesting for approval of an average tariff increase of 155 per cent of the current power rates.
The statement said Tanesco's request to increase power tariffs on an emergency basis is due to the emergency power efforts which have significantly increased the utility's operational costs.
According to Tanesco proposals, the domestic low usage, which includes an energy charge of 0-50kWh, will increase from 60/- to 153/- per unit while energy charges above 50kWh will shoot up to 497/- from 195/- per unit.
The Ewura statement said that, according to the application, Tanzania experienced poor rains in the catchments in 2010 and 2011 which negatively impacted hydroelectric power generation.
As a result, the country experienced an acute shortage of power which affected Tanesco's financial stability.
The statement said the power utility entered into an interim agreement to buy power from IPTL to supply 100MW using heavy fuel oil (HFO).
It signed another pact with Symbion LLC to generate 112MW (75MW gas-fired); and with Aggreko to supply 100MW using gas oil.
According to the statement, Tanesco has procured its own dual fuel-powered plant of 150MW and an HFO-fired plant of 70MW. With the exception of the firm's power plants which will be operational in 2012, the emergency rental power plants owned by Symbion and Aggreko are already operational and have considerably reduced power-rationing in the country.
Masebu said that, in accordance with Paragraph 15 (1)(3) of the Tariff Application Guidelines of 2009, the minister responsible for energy who, in principle, supports Tanesco's current application, has to issue a certificate of urgency for Ewura to expedite the approval process of an application.
The statement said Ewura received such certificate from the minister on November 11, 2011. Consequently, the regulator is reviewing Tanesco's application on an urgency basis, which calls for issuance of a provisional order to be issued after a limited public consultative process.
He said Ewura has arranged a public hearing of Tanesco's application to be held on December 2, this year, with a view to establishing the reasonableness or otherwise of the requested tariffs, which are proposed to come into effect from January 1, next year.
SOURCE: THE GUARDIAN
