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Home >> Business
UPDATED: 14:41, June 01, 2006
Tanzania raises electricity tariffs by 5 percent
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Tanzania's sole electricity supplier on Thursday raised its power tariffs by 5 percent so as to help meet operating costs, local media reported on Thursday.

The hiked tariff, however, were to affect the livelihood of those who consume more than 50 kilowatt/hour per month as only the tariff for consumption of more than 50 kilowatt/hour per month had been raised by the Tanzania Electric Supply Company Limited.

The power tariff hike was triggered by increased operational and power production costs, the company's board chairman, Felgence Kazaura, said in an official announcement.

Tanzania had been relying on hydropower generation that used to provide 90 percent of the country's electricity consumption.

Yet drought in recent years have forced the Tanzania Electric Supply Company Limited to turn to thermo-generated power that is much more expensive.

Now natural gas-fired turbines are generating upwards of 70 percent of the country's electricity consumption.

Local consumers of electricity are fearing that the power tariffs will have to be increased again as rumors had it that donors who have been pumping their money into the operation of the Tanzania Electric Supply Company Limited have wanted the power tariffs to be increased by between 15 and 20 percent, instead of only 5 percent.

Source: Xinhua


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