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Tanzania hikes electricity tariff by 40 per cent

Domestic power customers who consume less than 50 kWh of electricity will not be affected by this new system of tariffs, EWURA said. (Image source: Ruben GS/sxc.hu)

Tanzania’s energy and water utilities regulatory authority (EWURA) has announced a 40 per cent increase in electricity tariffs effective January 2014

The new tariff rates, proposed by the Tanzania Electric Supply Company (TANESCO), were detailed in the ‘Multi-Year Tariff Adjustment Order 2013’ report and are expected to hold up until 2016, according to Tanzania Daily News.

Felix Ngalamgosi, EWURA's director of regulatory economics, said, “The proposed tariffs will enable TANESCO meet its operational costs and the requirements of its capital investment programme.”

Domestic power customers who consume less than 50 kWh of electricity would not be affected by this new system of tariffs, EWURA said.

Earlier this year, TANESCO had revealed that it sought a 155 per cent increase in electricity tariffs.

Ngalamgosi added that a comparison of the electricity tariffs in east Africa revealed that Tanzania’s new tariffs, particularly for commercial and industrial consumptions, are still on the lower end in the region.

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