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Monday, 13 January 2014

Tariff hikes hit Tanzanians

Life gets tougher for Tananzians tomorrow when a 40% increase in power tariffs kicks in, hitting consumers and the country’s economy in general.

According to the Energy and Water Utilities Regulatory Authority (EWURA), ordinary domestic users will have to pay 100 shillings (US 60 cents) more per unit, up from 60 shillings. For big domestic consumers, small business operators, milling machine operators and the likes the price has been raised to 306 shillings from 221 shillings a unit. Subscribers using more than 7 500 units will pay 205 shillings a unit, up 132 shillings. For large-scale power consumers such industries connected to medium voltage, the new charges will be 166 shillings a unit, an increase 45 shillings.

The new price for high-voltage customers – Zanzibar Electric Company (ZECO), Bulyanhulu gold mine and Twiga Cement who use more than 66 000 units (T3-HV) – is 159 shillings a unit, up from 106 shillings, an increase of 53 shillings.

Felix Ngalamgosi, EWURA's director of regulatory economics, says price hikes are to bail out state- owned utility Tanesco. "The tariff adjustments enable Tanesco to meet its operational costs and capital investment programme, show bankability to donors and increase capacity needed to meet peak demand,” he says.