...as customers reject power hike plea

 

ELECTRICITY stakeholders yesterday rejected a proposal for an 18.19 per cent hike in power tariffs, advising the power utility to instead collect its outstanding 276bn/- debts.

They told the Tanzania Electric Supply Company (TANESCO) to halt the plan, describing the envisaged power hike as unnecessary burden on consumers, with adverse consequences on the cost of living for ordinary citizens. 

 

Speaking at an Energy and Water Utility Regulatory Authority (EWURA) organised public hearing here, electricity consumers warned that should the proposal be endorsed, it will counter the government efforts to make electricity accessible and affordable by majority people.

EWURA-Consumer Consultative Council (EWURACCC) representative, Erasto Kishe, said TANESCO has requested for power tariff hike in six months after it had lowered the charges by between 1.5 and 2.4 per cent last April and promising another 7.9 per cent reduction in 2017.

“The proposal to raise charges by 18.9 per cent invalidates its 1.1 per cent reduction in power tariffs for this year ... in other words, Tanesco wants to hike power tariffs by 20 per cent,” Mr Kishe said, adding that the power firm had admitted that an increase in power tariffs was partly due to its failure to change its debt amounting to 699.57bn/- by December 2015.

“The council advises EWURA to order Tanesco to submit its strategic plan to collect the 699.57bn/- debt,” charged the EWURA-CCC representative, explaining further that by September 2015, customers owed Tanesco 374.92bn/- but the amount increased to 699.57 in a threemonth period to last December.

“This is an increment of 100bn/- per month ...before EWURA and the government work on Tanesco proposal, the power firm should first submit its plan of collecting this debt from power bill defaulters, mostly government institutions,” he said.

He advised Tanesco to disconnect the power service to defaulters to force them pay the debts with penalties as per its regulations.Tanesco representative Sophia Mgonja said that in February, this year, Tanesco submitted its proposal to review the power charges and abolished the monthly service charges, fees for new applicants and lowered power charges by between 1.1 per cent for 2016 and 7.9 per cent for 2017.

She said that EWURA endorsed the proposed charge adjustments, including the reduction of power charges by between 1.5 and 2.4 for 2016.

“The power regulator directed TANESCO to resubmit the proposed power tariffs for 2017 by August 31, this year, but while the company was working on the 2017 proposal, it issued new formula of computing power charges approved by its board for 2016,” said Ms Mgonja, hinting that the firm’s debt has increased to 794.48bn/- by last September from 699.57bn/- in December, 2015.

EWURA’s Godfrey Chibulunje said that according to Tanesco proposal, among other things, the increase in power charges will help the company to invest in new infrastructure.

Responding to stakeholders’ concerns, Ms Mgonja said that at the time the company lowered power tariffs, its hydro sources were generating power at their fully capacity.

“Basing on weather forecast by Tanzania Meteorological Agency (TMA), there will be below average rainfall, with the megawatts generated from hydro sources likely to decrease,” she said, adding that the company must take precautions to ensure reliable power to its customers.

One of the stakeholders, Kashimili Mayunga from Dodoma Urban Water and Sewerage Authority said that his Authority was using electricity by 100 per cent, noting that an increase in power tariffs will affect water charges as well.