Who is responsible for TANESCO's death!?

[BAK]

...and why nothing has been done to those responsible of this situation!?

Tanesco losing $5m a month due to low tariffs

By JOSEPH MWAMUNYANGE
THE EAST AFRICAN

The Tanzania Electric Supply Company (Tanesco) has been losing an average of Tsh6.4 billion ($5.1 million) a month for the past nine months running after the energy regulator dropped its bid to raise tariffs.

Tanesco managing director Dr Idris Rashidi told The EastAfrican the firm's audited accounts for last year show that it is incurring heavy losses.

"For the company to fully recover its cost of service by charging a ‘cost reflective' tariff, last year's tariff would have to be increased by 118 per cent. However, we have submitted an application to the Energy and Water Utilities Regulatory Authority (Ewura) for a 40 per cent tariff adjustment and the reasons for it," he said.

Ewura currently has a team going round the country collecting views from the public and other stakeholders before it decides whether to allow a tariff increase.

Dr Rashidi said Tanesco was aware of the fact that the proposed tariff increase was a steep one and would have an adverse impact on its customers, adding, "That is why we are exploring alternatives to mitigate the impact of the tariff increase.

"The current cost of supply to consumers is Tsh183 ($0.1464) per kWh, and the average tariff charge is around Tsh84 ($0.1464). This means that Tanesco loses Tsh99 ($0.0792) on every kWh sold. As a consequence, the company is deeply in the red," he said in a candid admission to The EastAfrican.

The accumulated loss up to 2006 was Tsh677 billion ($541.6 million) due to the heavy use of the more expensive thermoelectric generation necessitated by severe drought.

"During the first nine months of 2007, the loss amounts to Tsh58 billion ($40.8 million) which is the equivalent of Tsh6.4 billion ($5.1 million) per month," said Dr Rashidi.

He added: "The shortfall between our revenues and our costs has historically been covered by bank borrowing, late payments to suppliers and direct subsidies from the budget, but from this financial year, the government will no longer subsidise Tanesco for operating costs, only disbursing Tsh18 billion ($14.4 million ) as part payment of the Independent Power Tanzania Ltd capacity charges."

The average cost per unit over the past three years has been varying. But Tanesco's failure to raise enough money to meet the real cost of the service it is providing has seen it fail to improve reliability and general efficiency.

The cost of service from the audited accounts ranged from 70 to 118 per cent above actual revenue. In August, banks and financial institutions in Tanzania teamed up to arrange a loan for Tanesco that represents the largest single financing deal ever undertaken in the East African region.

Dr Rashidi said some of the money will go towards paying off debts the company owes banks and the rest to revamping services and buying equipment needed to improve the provision of services to customers.

He said that the signing of the Tsh300 billion ($240 million) loan agreement was the first of a series of critical steps that Tanesco needs to undertake to return to a sound financial footing.

The firm's Tsh1,266 billion ($1 billion) financial recovery plan, which enjoys government as well as donor support, contains a number of initiatives the loan will fund.

Under the plan, the company has embarked on an ambitious programme to sustain an average load growth of 15 per cent per annum over the next five years. This will cater for new infrastructure and new customers.

Tanesco serves less than one million clients out of a population of 37 million. The electricity coverage is 10 per cent nationally but in many regions is in single digits. Rural coverage is below 2 per cent.

The main reasons for this low coverage are the limited reach of the company's grid and low intensity of connections in the grid areas, lack of funds to expand the grid, weak policy, regulatory and financing mechanisms for rural electrification in general and alternative off-grid solutions in particular.

Tanzania is endowed with diverse energy sources including biomass, natural gas, hydropower, coal, geothermal, solar and wind power, much of which is untapped.

 

[MzalendoHalisi]

Economics,
Watu wanasema sisi maskini- hatuwezi Kulipia! Sasa moja kuamua- kusuka au kunyoa- we can not have both!

 

[Mafuchila]

Kuongeza kiwango cha malipo ya umeme si suala la TANESCO, bali TANESCO ni shirika la kibiashara. Tatizo hapa ni kuwa, madhara ya mikataba ya Songas, IPTL na Richmond ndio inaanza kuonekana. Wanachofanya EWURA na bodi ya Kazaura ni kutomgusa kipofu mkono ili aone mambo yote shega na serikali inamlinda, lakini ukweli wenyewe baada ya serikali kuondoa ruzuku kwa TANESCO na kuiachia TANESCO mzigo wa kulipia madeni kwa Dowans, IPTL na Richmond, hapo ndipo tunapoona TANESCO haina njia nyingine isipokuwa kupandisha gharama zake ili kufidia gharama za uendeshaji. Kuliambia shirika lisipandishe gharama wakati serikali imejiondoa kutoa ruzuku kuna mawili: ama serikali na mabepari uchwara wanataka kulipeleka TANESCO kule walikoipeleka TRC au la wanajisafisha wao kwa gharama za TANESCO.

 

[rpg]

Economics,
Watu wanasema sisi maskini- hatuwezi Kulipia! Sasa moja kuamua- kusuka au kunyoa- we can not have both!

What do you mean?????????

 

[Mugo"The Great"]

The Tanzania Electric Supply Company (Tanesco) has been losing an average of Tsh6.4 billion ($5.1 million) a month for the past nine months running after the energy regulator dropped its bid to raise tariffs.

“The current cost of supply to consumers is Tsh183 ($0.1464) per kWh, and the average tariff charge is around Tsh84 ($0.1464). This means that Tanesco loses Tsh99 ($0.0792) on every kWh sold. As a consequence, the company is deeply in the red,” he said in a candid admission to The EastAfrican.

The accumulated loss up to 2006 was Tsh677 billion ($541.6 million) due to the heavy use of the more expensive thermoelectric generation necessitated by severe drought.

“During the first nine months of 2007, the loss amounts to Tsh58 billion ($40.8 million) which is the equivalent of Tsh6.4 billion ($5.1 million) per month,” said Dr Rashidi.

He added: “The shortfall between our revenues and our costs has historically been covered by bank borrowing, late payments to suppliers and direct subsidies from the budget, but from this financial year, the government will no longer subsidise Tanesco for operating costs, only disbursing Tsh18 billion ($14.4 million ) as part payment of the Independent Power Tanzania Ltd capacity charges.”


The government is fully responsible for the bogus contracts,which have led the country in an unceremonious and disorganized struggle. JK should not avoid his shadow, let him deal with MAFISADI,whom egotistically signed the contracts.Otherwise,the problem is being transferred from the Government to Poor Tanzanians and we are told to wait for "MAISHA BORA KWA KILA MTANZANIA" tutafika kweli? I believe the Truth will stand one day (Not Long from Now), let's wait and see.

 

[Koba]

Hawa watu hawako serious na swala zima la umeme na kila siku wanakuja na excuse nyingi sana ili mradi tuu kutudanganya danganya kama watoto,na nimeshtuka sana umeme Tanzania ni chini ya 10% na sehemu nyingi ni 2% tuu,nani asiyejua almost 100% ya mikataba yote ya TANESCO ni bogus & rushwa tupu kuanzia Luku,MNET group,IPTL,Richmond etc,angalia maofisa wa TANESCO Landcruisers wanazosukuma unafikiri pesa inatoka wapi? na hiyo mikopo waliyochukua Bank nasikia ni disaster na ndio itaua kabisa kila kitu...lakini bottom line hawa watu hawazalishi umeme bado wanatumia mitambo aliyotuachia mkoloni na matakataka ya IPTL na Richmond,juzi wamechukua billions kutoka bank lakini watakachofanya na hizo pesa mtashangaa ni kuziba ziba maviraka ya upuuzi wao badala ya kufanya kweli na kununua mitambo mipya na Teknoloji mpya ya kuzalisha umeme,Gas tunayo lakini wameshindwa hata kununua tuu mtambo kutoka kwa original seller mpaka wamtumie Richmond ambaye ndio kutuletea stone age technology na bei mara 100,hivi hawa watu wana akili kweli? na ndio watatuletea umeme kweli? tatizo hawa watu ni wala rushwa tuu na hawana vision yeyote na fukuza wote

 

[Agao Kichore]

Tanzania is endowed with diverse energy sources including biomass, natural gas, hydropower, coal, geothermal, solar and wind power, much of which is untapped.
Sasa kama yote haya tunayo sasa kwa nini taabu zote hizi?
TANESCO Inatakiwa kusimamiwa kama usalama wa Taifa. Kitendo cha Serikali kuchezea Uwezo wa nchi kuzalisha umeme kwa gharama nafuu ni kitendo cha hatari sana. Kuingia mikataba kimaslai binafsi na upungufu wa umakini ni pigo kwa Taifa. Tumeona ni jinsi gani JK asivyoweza mambo. Licha ya kutia msukumo na kutangaza janga la umeme wakati ule ilikuwa ni dhiaka kwa kazi kama ile kufikia hatua ya kuingia mkataba feki na Richmond. Hivi watu hawa wanatofauti ghani na wale madaktari wa MOI waliofanya operation vise versa. Unaongeza ugonjwa kwenye mwili unaoumwa.
Nchii hii kama unataka umaarufu bila ku rock the boat ni wahindi tu ndo watatoka. All in All Ni CHAMA TAWALA kimetufikisha kwenye safari ya kifo cha TANESCO. Kifo kitakachopelekea kupatikana kwa kundi jingine la mafisadi. Viongozi wetu wazuri wa kutuadaa ilimradi tu muda wao uishe. Si mnaona Waziri mkuu wa Canada katua Bongo na Issue made in PUBLIC NI MADINI. Do, tumekwisha.

...and why nothing has been done to those responsible of this situation!?

Tanesco losing $5m a month due to low tariffs

By JOSEPH MWAMUNYANGE
THE EAST AFRICAN

The Tanzania Electric Supply Company (Tanesco) has been losing an average of Tsh6.4 billion ($5.1 million) a month for the past nine months running after the energy regulator dropped its bid to raise tariffs.

Tanesco managing director Dr Idris Rashidi told The EastAfrican the firm’s audited accounts for last year show that it is incurring heavy losses.

“For the company to fully recover its cost of service by charging a ‘cost reflective’ tariff, last year’s tariff would have to be increased by 118 per cent. However, we have submitted an application to the Energy and Water Utilities Regulatory Authority (Ewura) for a 40 per cent tariff adjustment and the reasons for it,” he said.

Ewura currently has a team going round the country collecting views from the public and other stakeholders before it decides whether to allow a tariff increase.

Dr Rashidi said Tanesco was aware of the fact that the proposed tariff increase was a steep one and would have an adverse impact on its customers, adding, “That is why we are exploring alternatives to mitigate the impact of the tariff increase.

“The current cost of supply to consumers is Tsh183 ($0.1464) per kWh, and the average tariff charge is around Tsh84 ($0.1464). This means that Tanesco loses Tsh99 ($0.0792) on every kWh sold. As a consequence, the company is deeply in the red,” he said in a candid admission to The EastAfrican.

The accumulated loss up to 2006 was Tsh677 billion ($541.6 million) due to the heavy use of the more expensive thermoelectric generation necessitated by severe drought.

“During the first nine months of 2007, the loss amounts to Tsh58 billion ($40.8 million) which is the equivalent of Tsh6.4 billion ($5.1 million) per month,” said Dr Rashidi.

He added: “The shortfall between our revenues and our costs has historically been covered by bank borrowing, late payments to suppliers and direct subsidies from the budget, but from this financial year, the government will no longer subsidise Tanesco for operating costs, only disbursing Tsh18 billion ($14.4 million ) as part payment of the Independent Power Tanzania Ltd capacity charges.”

The average cost per unit over the past three years has been varying. But Tanesco’s failure to raise enough money to meet the real cost of the service it is providing has seen it fail to improve reliability and general efficiency.

The cost of service from the audited accounts ranged from 70 to 118 per cent above actual revenue. In August, banks and financial institutions in Tanzania teamed up to arrange a loan for Tanesco that represents the largest single financing deal ever undertaken in the East African region.

Dr Rashidi said some of the money will go towards paying off debts the company owes banks and the rest to revamping services and buying equipment needed to improve the provision of services to customers.

He said that the signing of the Tsh300 billion ($240 million) loan agreement was the first of a series of critical steps that Tanesco needs to undertake to return to a sound financial footing.

The firm’s Tsh1,266 billion ($1 billion) financial recovery plan, which enjoys government as well as donor support, contains a number of initiatives the loan will fund.

Under the plan, the company has embarked on an ambitious programme to sustain an average load growth of 15 per cent per annum over the next five years. This will cater for new infrastructure and new customers.

Tanesco serves less than one million clients out of a population of 37 million. The electricity coverage is 10 per cent nationally but in many regions is in single digits. Rural coverage is below 2 per cent.

The main reasons for this low coverage are the limited reach of the company’s grid and low intensity of connections in the grid areas, lack of funds to expand the grid, weak policy, regulatory and financing mechanisms for rural electrification in general and alternative off-grid solutions in particular.

Tanzania is endowed with diverse energy sources including biomass, natural gas, hydropower, coal, geothermal, solar and wind power, much of which is untapped.

 

[Mafuchila]

Bongo itajengwa na wenye moyona kuliwa na wenye meno...

 

[BAK]

Viongozi mafisadi na familia zao wamenufaika kupitia mgongo wa TANESCO waliposaini mikataba ya Richmond ambapo $172 million ililipwa kwa Richmond bila kufanya kazi yoyote~HAKUNA ALIYEWAJIBIKA! Viongozi mafisadi na familia zao walinufaika pale ambapo mkataba kati ya Kiwira Coal Mining na TANESCO uliogharimu shiling 340 billioni na usiokuwa na maslahi yoyote kwa Watanzania uliposainiwa kwa shinikizo toka kwa viongozi wa awamu ya tatu ambao pia ni wamiliki wa KCM~HAKUNA ALIYEWAJIBIKA! Mkataba wa IPTL ambao ulikuwa ni gharama kubwa ulisainiwa pamoja na kuwa kuna wataalamu wizarani walitoa maoni kwamba usisainiwe kwa kuwa ni ghali mno, lakini bado uksainiwa na HAKUNA ALIYEWAJIBIKA!

Hata katika nchi zilizoendelea sekta ya umeme ni nyeti na siku zote inakuwa chini ya miliki ya serikali au shirika/kampuni ambalo ni la serikali, jimbo au mji na siyo private company kutokana na umuhimu mkubwa wa umeme. Leo hii nashangaa kusikia pamoja na kuwa TANESCO ina hali mbaya sana kifedha, sirikali imeamua kujitoa kuidhamini TANESCO na wakati huo huo haiko tayari kuirihusu iongeze bei ya umeme. Sirikali ni lazima iamue moja la kufanya kati ya hayo mawili, ama ihakikishe kwamba TANESCO inasaidiwa na sirikali ili kupunguza au kuondoa kabisa matatizo yake kifedha au iruhusiwe kuongeza bei ya umeme angalau hata kwa 10%. TANESCO ni mgonjwa taabani inabidi apate matibabu haraka iwezekanavyo vinginevyo tusishangae kuona nchi inarudi tena kwenye kiza kinene.

 

[Mafuchila]

Na kwa sababu mikataba ilisainiwa kwa shinikizo kutokana serikalini, basi serikali ndio ibebe mizigo ya IPTL na Dowans. Na walioisaini wawajibishwe mara moja.

 

[Alpha]

Of course nobody will be held responsible. It's TZ whats new, steal, lie, almost plung the WHOLE country into total darkness, and just generally be completely incompetent at your job. The worst thing that could happen is, you might be transfered to another department.

Wish i could find a job like that in the private sector

 

[eddy]

Hiki kibabu Dr Idrissa Kiko wapi?

 

[Iselamagazi]

Hiki kibabu Dr Idrissa Kiko wapi?

Duuuh, Uzi wa mwaka 2007!

 

[FRANCIS DA DON]

RUFIJI HYDROPOWER oyeee...!!!

 

[FRANCIS DA DON]

Na kwa sababu mikataba ilisainiwa kwa shinikizo kutokana serikalini, basi serikali ndio ibebe mizigo ya IPTL na Dowans. Na walioisaini wawajibishwe mara moja.

Akina Rugemalira na Singa singa wananyea debe hadi leo

 

[FRANCIS DA DON]

Tanzania is endowed with diverse energy sources including biomass, natural gas, hydropower, coal, geothermal, solar and wind power, much of which is untapped.
Sasa kama yote haya tunayo sasa kwa nini taabu zote hizi?
TANESCO Inatakiwa kusimamiwa kama usalama wa Taifa. Kitendo cha Serikali kuchezea Uwezo wa nchi kuzalisha umeme kwa gharama nafuu ni kitendo cha hatari sana. Kuingia mikataba kimaslai binafsi na upungufu wa umakini ni pigo kwa Taifa. Tumeona ni jinsi gani JK asivyoweza mambo. Licha ya kutia msukumo na kutangaza janga la umeme wakati ule ilikuwa ni dhiaka kwa kazi kama ile kufikia hatua ya kuingia mkataba feki na Richmond. Hivi watu hawa wanatofauti ghani na wale madaktari wa MOI waliofanya operation vise versa. Unaongeza ugonjwa kwenye mwili unaoumwa.
Nchii hii kama unataka umaarufu bila ku rock the boat ni wahindi tu ndo watatoka. All in All Ni CHAMA TAWALA kimetufikisha kwenye safari ya kifo cha TANESCO. Kifo kitakachopelekea kupatikana kwa kundi jingine la mafisadi. Viongozi wetu wazuri wa kutuadaa ilimradi tu muda wao uishe. Si mnaona Waziri mkuu wa Canada katua Bongo na Issue made in PUBLIC NI MADINI. Do, tumekwisha.

RUFIJi oyeeee..!!!