Monday, November 12, 2007

Ewura bars new Tanesco charges


Plans by the Tanzania Electric Supply Company Ltd (Tanesco) to hike domestic power connection charges have hit the wall.

The reason is that the firm has failed to get the mandatory approval for the proposed changes from the Energy and Water Utilities Regulatory Authority (Ewura).

Tanesco was out to hike the charges by more than 100 per cent this month but there have been nationwide calls against the idea � with Ewura also far from impressed.

Ewura Director General Haruna Masebu said in an exclusive interview with The Guardian on Friday that Tanesco management had responded to the authority`s four-day ultimatum issued last week.

The power supply firm now wants the authority to bless the proposed higher charges, which it earlier sought to effect behind Ewura`s back.

Ewura, the Government`s watchdog on all affairs relating to the energy and water sectors in the country, in turn instructed Tanesco to explain why it unilaterally decided to announced the illegal hike.

Masebu said Tanesco duly responded to the Ewura note through an official letter before the end of last week, thus beating the Friday deadline.

`At least for the time being, the power supply company will shelve the plan but they have now applied for permission from us to alter the charges as required by the law. We are working on the matter to see whether the proposed rates are reasonable,` he added.

Elaborating, the Ewura chief observed that Tanesco reply does not explain why the company announced `changes on such a sensitive issue as energy charges` without seeking the watchdog�s approval.

However, he noted that his office would not push for any further explanation `so long as they have complied with our directive`.

Tanesco�s Public Relations Manager, Daniel Mshana, confirmed in a separate interview that the company�s Director General, Dr Idris Rashid, officially responded to the Ewura query by the Friday deadline. He would give no further details.

Last week, the Government told the National Assembly currently in routine session in Dodoma that it was wrong and illegal for the power supply firm to revise the electricity connection service charges without Ewura`s consent.

Energy and Minerals deputy minister William Ngeleja told the House that Tanesco was incompetent to revise charges for its services without studying the actual amount of money spent on each particular service and without getting permission from Ewura.

Masebu had also clarified to The Guardian that Tanesco has no mandate whatsoever to announce new power tariffs without the consent of the authority.

Asked for comment on the issue then, Masebu said Tanesco had sent Ewura an application seeking to have its tariffs reviewed `but the letter did not include the element of power connection costs.`

He said that procedure requires that Tanesco and Ewura sit together and see what to do to make sure that the changes do not needlessly harm the people.

The power supply company last hiked service connection fees by more than 100 per cent, leading to a nationwide outcry, and hence the current intervention by Ewura and the Government.

The new connection charges Tanesco are gunning for range between 563,271/- and 3.78m/- for consumers using pre-paid meters, popularly known as LUKU, and between 497,482/- and 2.4m/- for those using ordinary meters.

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