Update: Energy Minister Sospeter Muhongo has ordered the implementation of new energy tariffs be halted until the ‘government has thoroughly and carefully considered the formal report it will receive from EWURA.’
The statement was made in a letter dated December 31 that was widely shared on social media.
Happy New Year, your power bill is going up.
Tanzania’s energy utility provider Tanesco will hike tariffs by an average of 8.5 percent effective January 1, 2017.
“The average tariff will thus increase from 242.34 TSH/kwh to 263.02 TSH/kwh,” says Felix Ngamlagosi, director general of the Energy and Water Utilities Regulatory Authority (EWURA.)
Tanesco had hoped to hike power tariffs by 18.19 percent to help cover costs, but the energy regulator only approved a hike of less than half, says Ngamlagosi.
The utility provider says they they are currently selling power at a loss and hope the increase will ‘demonstrate its bankability to donors offering concessionary loans or grants.’
Residential utility costs will go up 7 percent, from 292 TSH to 312 TSH per unit.
Light industry utility costs will rise 8.4 percent, from 292 TSH to 317 TSH per unit.
The rate for industries consuming an average of more than 7,500 kwh per meter reading period will increase by 8.8 percent, from 195 TSH to 213 TSH per unit.
Tariffs for customers requiring medium and high voltage will rise 8.3 and 7.5 percent respectively.
Low use customers on single-phase connections using less than 75 kwh per month will not be affected; but should low use customers use more electricity for six consecutive months, they will be bumped to the residential tariff level which is subject to the 7 percent increase.
The rate at which Tanesco sells its power to ZECO, the Zanzibar Electric Company, will increase by 5.7 percent.
According to Reuters, Tanesco has been seeking loans from the World Bank, the African Development Bank and other lenders to help them return to profitability.