Ewura Launches Study: Unveiling the Costs Behind Electricity Service Delivery

In Dar Es Salaam, the Energy and Water Utilities Regulatory Authority (Ewura) intends to undertake a study in the fiscal year 2025/26 aimed at evaluating the actual costs associated with delivering electrical services. This was disclosed recently by Dr. James Mwainyekule, who serves as the organization's Director General. Dr. Mwainyekule made his announcement during an event held on April 7th in Dodoma marking the release of the performance report for the energy sector covering 2023/24. He mentioned that these studies will come about due to several large-scale governmental initiatives focused on enhancing the nation’s electric grid through facilities like the Kinyerezi Gas-Fueled Power Plant and the Julius Nyerere Hydroelectric Project (JNHPP). Accordingly, he stated that although substantial advancements have occurred within the framework supporting the transmission and distribution networks—including a notable growth rate of nearly 26% across all sectors—the current pricing structures remain unchanged since 2016. This stagnation contrasts sharply against the backdrop where the state-owned firm responsible for managing much of Tanzania’s public utilities network, namely TANESCO, has witnessed considerable profitability improvements leading up to today—a stark departure from previous trends characterized predominantly by recurring deficits. During those earlier periods marked by heavy dependence upon leased machinery used primarily for generating power, rates escalated significantly; however, reductions did not occur post-termination of rental arrangements. Another pivotal step towards stabilizing finances involved converting part of TANESCO's debts totaling roughly $1 billion USD into share capital instead. Looking ahead, projections suggest escalating demands could see consumption levels soar upwards toward 4,878 MW by 2030 before peaking again near 8,000+ MW five years later. To meet future requirements effectively requires bolstering investments directed specifically towards green alternatives such as harnessable sunlight and gusts available via wind farms currently being established throughout various parts of western Tanzania. Nonetheless, some concerns persist regarding certain non-operationalized contracts tied explicitly to photovoltaic installations amounting to almost half their intended output potential. Consequently, authorities urge closer scrutiny coupled alongside accelerated resolutions targeting inactive accords awaiting activation status changes soonest possible. Syndigate.info ).