‘Reduce electricity prices after completing JNHPP‘

By Guardian Reporter , The Guardian
Published at 09:17 AM Aug 31 2024
MP Masache Kasaka (Lupa)
Photo: Courtesy of National Assembly
MP Masache Kasaka (Lupa)

THE government has been urged to review electricity prices following the completion of the Julius Nyerere Hydropower Project (JNHPP) to provide relief to consumers, the legislature has demanded.

Masache Kasaka (Lupa) asked in a supplementary question in the National Assembly why the government had not revised electricity prices despite the completion of the major power project.

Currently, the average price for one subsidised unit of electricity is 100/- (for normal usage of up to 75 units per month) while without subsidy the cost stands at 292/- for a unit, official figures show, while for consumers using more than 75 units per month, they pay 292/- per unit with subsidy, instead of 320/-.

Judith Kapinga, the Energy deputy minister, explained that electricity costs encompass production, distribution, transmission and preliminary investment costs, while current electricity prices include government subsidies designed to reduce the burden on specific sections of consumers.

Compared to other East African countries, Tanzania's electricity prices are relatively low, she said, noting that the government is firm on subsidies to ensure that prices remain affordable for the public.

In the basic question, Suma Fyandomo (Special Seats) demanded when the government would reduce the unit price of electricity, to which the deputy minister responded that the price is related to all the cost sources.

“The current price does not reflect the actual cost; it includes government subsidies. The average price for one subsidised unit of electricity is 100/- (for normal usage of up to 75 units per month), while without subsidy, it is 292/-.

For those using more than 75 units per month, they pay 292/- instead of 320/-,” she said.

The government was constantly evaluating the costs of TANESCO services to adjust prices by changes in all the cost areas, she added.