Tanzania: Power Connection Costs Need to be Reduced

Tanzania: Power Connection Costs Need to be Reduced - MP

Posted on :Thursday , 2nd February 2017

Dodoma — The service line charged by the Tanzania Electric Supply Company (Tanesco) for power connection is too high and needs to be revised, a Member Parliament declared here yesterday.

Daniel Mtuka, the Manyoni East legislator (CCM), said in the cost imposed by the company was unbearable for Tanzanians in rural and urban areas compared to the cost charged by the Rural Energy Agency (REA) for the same service.

"Most Tanzanians still need electricity, but they have been disappointed due to the high charges of service line," he said, mentioning the charges as 177,000/- for Tanesco and 27,000/- for REA. "Is it not a high time for the government to lower the charges to 27,000/-?" he asked.

The MP said the clients also face a burden in power connection as a single pole is charged 337,740/-. "These poles are property of Tanesco why is this burden not taken by the government?" he asked.

Responding to the queries, Deputy Minister for Energy and Minerals Dr Medard Kalemani said Tanesco incurs the cost for developing infrastructure -- including the cost of poles and other equipment to supply power to its clients.

Considering the budget deficit, the minister said it was not easy for the firm to distribute power to all areas of the country. The 2011 Electricity Act provides for customers putting up infrastructure to get an agreement with Tanesco on how they would be refunded their costs. Dr Kalemani said "in areas where there is infrastructure, people only pay for poles and other equipment as charges to get power connection.

"The government finances REA projects by 100 percent. The 27,000/- charge is a value-added tax being imposed to encourage and enable people in rural areas with limited means to get power," he said.

He said after the REA project, new clients are connected with electricity under Tanesco's guidelines, which require them to pay 177,000/- to a distance that does not need a pole.

The cost covers a cable and electric metre. The cost for connecting electricity to customers who do not need a cable is 320,960/-. That does not include service charge which was scrapped off by the ministry in April last year.

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