THE Energy and Water Utility Regulatory Authority, Board of Directors has extended Tanzania Electric Supply Company (Tanesco) emergency power tariff order for another three months.
Tanesco was granted an emergency tariff hikes up to 40.92 per cent, early this year following an emergency tariff application requesting for 155 per cent tariff.Tanesco cited high operational costs due to emergency power plants and extensive use of its own thermal generation plants to address power shortages as the reason for the emergency tariff.
EWURA's Principal Public Relations and Communication Officer, Mr Titus Kaguo, told 'Daily News' that emergency power tariff was to end last month, upon which the regulatory body was to conduct a review and set new prices.
"For the next three months, Tanesco will continue using the emergency tarrif granted by EWURA, until the utility body conducts a thorough study to determine Tanesco's real operational costs," he explained. Mr Kaguo said EWURA had planned to conduct a thorough study of Tanesco's Operational costs by using a National Power Master Plan, which has not been finalized yet.
Instead the government has directed EWURA to use the National Power Master Plan in its draft form, to conduct the study which will take three months, Mr Kaguo explained."In order for Tanesco to have a prudent reflective tariff cost, they must have a cost of service study, which show the operational costs.
The study will show all this, which will in turn make it possible for EWURA to set a realistic power tariff," he explained.
The study titled 'Cost of Service Study' will take three months and the EWURA will cover the costs of conducting the study.
Early this year EWURA granted Tanesco a 40.92 per cent power tariff hikes, instead of the original requested 155 per cent.
Tanesco had asked for an increase of 155 per cent, arguing that operational costs had risen due to emergency power plants and extensive use of its own thermal generation plants to address power shortages.
The new prices, according to Ewura, was to hold for six months upon which a review would be made and new prices given depending on the prevailing situation in terms of rain, oil prices and inflation.