EWURA LOWERS POWER TARIFFS

Dar es Salaam. Power tariffs have been reduced by 2.21 percent for Tanzania Electric Supply Company customers who consume more than 75 units a month.

The fall becomes effective March 1, Energy and Water Utilities Regulatory Authority (Ewura) said on Friday.

“The study carried out last year found it necessary to reduce the tariffs by 2.21 per cent because Tanesco had enjoyed unplanned income of TZS 33 billion following changes in the cost structure accrued from inflation, oil prices and the shilling value,” said Ewura director general Felix Ngamlagosi.

According to him, the changes in Tanesco running costs include fuel costs at the value of TZS 57.2 billion, the decline in the shilling value that results in unplanned revenue of TZS 6.7 billion and inflation that has resulted in TZS 17.4 billion spending.

The second category is for customers consuming 400 volts, who will enjoy a tariff reduction of five shillings per unit; from TZS 205 to 200 per unit. The third category includes those who will enjoy a reduction of four shillings per unit, which is a fall from TZS 163 to 159 per unit. The fourth category includes those who will enjoy a reduction from TZS 159 to 156 per unit.

“The last category will include big industrial consumers of electricity and Zanzibar customers.” Customers consuming 75 units or less than that will not enjoy a tariff reduction because already they have been subsidised by higher consumers, notes Ewura.

Moreover, Ngamlagosi said according to operating regulations on tariff changes, Ewura would be reviewing the power tariff structure quarterly with effect from April this year.

Major factors that will be used to calculate the new tariff structure under the set formula include energy costs, national currency value and inflation, according to him.