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Tanesco announces cuts in power connection fees

19th December 2012
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TANESCO

Tanzania Electric Supply Company has announced major reduction in connection fees starting next month, as promised by the Energy and Minerals minister some months back.

A statement availed to The Guardian yesterday by Tanesco said connection fee for single phase for urban customers has been reduced by 30 percent while connection fee for rural consumers has been reduced by 70 percent.

According to the statement connection charges for single phase for rural customers within a distance not exceeding 30 meters of the main line, and not needing an electric pole will be required to pay 177,000/- while  those in urban areas will pay 320,960 instead of  the previous 455,108/-.

The statement said the reduction is equivalent to 61.11percent for rural consumers and 29 .48 percent for those in urban areas.
Rural consumers who need a single phase connection, whose installation requires one electric pole will pay 337,740/- while urban dwellers will pay 515,618 instead of 1,351,884/- currently being paid by the customers.

The reduction is equivalent to 75.02 per cent for rural dwellers and 61.86 per cent for urban dwellers.

Consumers in rural and urban areas requiring single phase power connection, which requires two electric poles shall have to pay 454,654/- equal to 77.28 per cent and 696,670/- equal to 65.19 per cent respectively, instead of the previous 2,001,422/-.
The statement said Tanesco aimed at reaching more 30 per cent of the total population by 2015.
 
Earlier this month, Energy and Minerals Minister Prof Sospeter Muhongo told The Guardian that the power connection charges would be effected in at least six regions by next month.
Without naming the regions, he said that the applicable fees have already been set for each region.

He said that residents of Lindi and Mtwara regions have meanwhile, started enjoying the lower rates. They will for the next six months be paying only 99,000/- connection fee for both single and three-phase power, a steep reduction from 455,104.76/- for single phase and 912,104.74/- for three phase.

According to the Minister, residents of Lindi and Mtwara have been given such lower prices as an offer to enable more people in the regions have access to electricity. He said the residents have for a long time complained about high fee for power connection despite the regions being major producers of gas in the country.

Tabling the 2012/13 budget estimates for the ministry, Prof Muhongo said the new charges aimed at reducing the burden of power connection cost by 30 and 70 per cent from the levels that new customers have been shouldering.

SOURCE: THE GUARDIAN