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Power sector badly needs some respite
2008-03-29 09:24:09
By Editor
The government looks determined to see the Electricity Supply Bill, 2007 endorsed at the ordinary meeting of the National Assembly next month.
Its determination remains unswerving despite the fact that the draft bill has been rejected twice this year at legislators` seminars organised by the Energy and Minerals ministry.
Apparently, the seminars were meant to ``soften`` the lawmakers into embracing the bill closely enough for it to be tabled in the National Assembly for later enactment.
It appears the MPs have noticed at least two major weaknesses in the draft bill they would want addressed before they consider its endorsement.
First, they believe it is too early to fully liberalise the energy sector and thus let the troubled state-run Tanzania Electric Supply Company (Tanesco) compete with private operators.
They also stress the need for the crafting of a national power master plan that they hope will give a clear picture on whether Tanesco will still have the capacity to serve the community efficiently enough in the future.
This is an excellent moment to think of how much cash is needed to revamp Tanesco.
This is particularly given its obligation to pay about 21bn/- monthly in energy capacity charges to emergency power producing firms while it collects a mere 30bn/- from its customers per month.
But until such time that the controversial Power Purchase Agreements are no longer in force, Tanesco will hardly ever be able to stand on its own feet.
What is even worse is that the monopolistic Tanesco is not run efficiently enough and previous studies have shown that it needs to radically rationalise its revenue collection department.
Meanwhile, there would be little use in having an energy sector master plan for the sake of Tanesco alone when it would not always be the sole energy supplier in the country.
What is needed is a national master plan also addressing issues like long-term alternative energy policies and programmes, specific energy technologies appropriate for rural and peri-urban areas, changing regulatory requirements, and the funding options and modalities.
The creation of any master plan is a collaborative process involving the engagement of both stakeholders and reputable consultants.
It is not something that can be accomplished in a short while because one of its major components ought to be a stakeholder outreach programme.
Issues to keep a keen eye on include existing and potential energy resources, power supply constraints, regulatory compliance, and energy utility rates.
That would, in turn, lead to the creation of a stakeholder opinion summary for onward presentation to authorities like the Energy and Water Utilities Regulatory Authority.
In any case, any master plan must be periodically updated so that it is in tune with changes in demand, the emergence of new energy technologies and the need to expand and upgrade facilities.
The energy sector in this country has had it horrendously rough in the last two decades or so, partly because of the lack of a sectoral master plan, and badly needs some respite. Let it come.
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