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Tanesco eyes 1.5m customers by 2015

26th February 2012
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Tanesco Managing Director, William Muhando

The State owned power utility, Tanzania Electric Supply Co Ltd(Tanesco), plans to increase its customers base to 1,500,000 by 2015 up from the current 932,385, the company’s Managing Director, William Muhando told Tanzania Editors Forum last Saturday.

Briefing editors about the current situation of power production, distribution and supply, Tanesco’s Managing Director said by 2015 the company’s customers would be 30 percent of the total population.

So far Tanesco has only 932,385 customers or 17 percent of the country’s population, according to the company’s data.

According to data from Uganda Electricity Board, the country’s electricity distribution company, there are 450,000 connections to the grid in Uganda.

However in reality there are bout 9 million electricity users in Tanzania because energy experts believe that every single connection create opportunity to new five users of electricity.

In third world countries like Tanzania where most houses are overcrowded the number could even be higher than five people.

According to the company’s Managing Director by 2015 Tanesco plans to produce a total of 2000 megawatts up from the current 833 megawatts.

The State Owned power utility also plans to reduce the electricity loses during transmission to 15 percent down from the current 21 percent.

Tanzania produces an estimated 4.628 billion Kilowatts Hour per year according to the data published by the World Bank in 2011. In 2008 the total Kilowatts Hour (kWh) produced in Tanzania was 4.414 billion per year.

The Electricity production (kWh) in Kenya per year was 6.875 billion units (kWh) in 2009, up from 6.775 billions kWh produced in 2008 according to a World Bank report, published in 2010.

Tanzania’s electric power consumption (kWh per capital) is still the lowest whereby in 2010 it was 86 units or kWh, while in Kenya the per capital consumption stands at 147 units.

South Africa has the highest electric consumption per capital which currently stands at 4,532units (kWh) or fifty times the per capital consumption in Tanzania.

Citing the company’s performance after the Parliament authorized a $1 billion power rescue plan in August last year, the MD said so far Tanesco has managed t

Electric power consumption measures the production of power plants and
combined heat and power plants less transmission, distribution, and
transformation.

Explaining the Tanesco’s financial situation, the MD said despite difficulties in financing as well as power rationing, the company has managed to move from a loss-making of about Sh161 billion($100million) in 2006 to a profit-making of Sh40 billion($24 million) by the end of 2009.

Citing the company’s performance after the Parliament authorized a $1 billion power rescue plan in August last year, the MD said so far Tanesco has managed to produce a total of 928.7 megawatts whereby Hydro electricity production accounts for 45.3 percent, Gas 29.5 percent and Thermo electricity 25.2 percent.

However the company’s financial outlook are still bleak as it still produces electricity at the highest price, but sell it at the lower price.

Currently with the heavy dependency on emergency power generating plants, which mainly use fuel as the source of energy, it cost Tanesco a total of Tsh359 to produce and distribute a single unit of electricity.

Taking an average price of Tsh156.8 per unit after last week’s increment, it means in every single unit of electricity produced by Tanesco, the company will still lose Tsh202.2, casting a bleak future to the cash strapped State owned power utility.

Following the newly approved increment Tanesco’s revenues for 2012 are projected to be Tsh1.5 trillion ($1billion). The company had sought to earn Tsh1.86 trillion ($1.1billion) during this fiscal year.

SOURCE: GUARDIAN ON SUNDAY
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