In Tanzania, Energy and Water Utilities Regulatory Authority (EWURA) approved application by power utility Tanesco to reduce power tariff.

We have approved to decrease tariff by a range of 1.5 to 2.4 per cent in 2016 compared to the current tariff, said Felix Ngamlagosi, EWURA’s director general. The new tariff is effective since April 1, 2016. It cancels rates on households’ consumption and to connect new clients to the grid.

The approval is subsequent to a request from Tanesco, for the reduction of power tariff by 1.1% starting from April 2016 and 7.9% starting from January 2017. Before being introduced, EWURA approval a 2.21% decrease for clients consuming less than 75 units per month.

Felix Ngamlagosi said it approved the tariif cut on the condition that Tanesco submit another request for the January 2017 tariff cut ; by August 31, 2016, and send an updated version of its investment program taking into account the difference bewteen depreciation and profit of its assets valued at Sh351.4 billion ($160 million).

The tariff cut was driven by the country’s power policy that aims to develop its own gas plants, thus saving on expenses made to purchase power from independent producers.

Gwladys Johnson