A MEMBER of Parliament yesterday questioned why the Tanzania National Electric Supply Company (Tanesco) charges high costs for connection fees, calling for immediate review of costs.
Led by Manyoni MP, Daniel Mtuka (CCM), the lawmakers argued that the state-owned utility company imposes high charges that most Tanzanians cannot afford.
In his question during the question and answer sessions, the legislator argued: “It is absurd that Tanesco charge 177,000/- while the Rural Energy Agency (REA) charges 27,000/- for the same services.”
He argued that majority of the Tanzanian population need electricity but are taken aback by high costs of service lines which is six times that charged by REA.
The MP said that customers also face another burden in connecting to the power line as one pole costs 337,740/-. "These poles are property of Tanesco, why has this burden not taken by the government?"
Dr Medard Kalemanim, Deputy Minister for Energy and Minerals, responded by telling the house that Tanesco incurs costs for infrastructure including poles and other equipment to supply electricity to customers.
He also said that due to financial constraints, it is not easy for the firm to supply electricity to all areas.
However, the Electricity Act Regulations, 2011 stipulates that customers putting up infrastructure should have an agreement with Tanesco on how to be refunded once other customers are connected using the same infrastructure.
The deputy minister noted: "In areas where there are infrastructures, people only pay for poles and other equipment as charges for them to be connected."
"The government finances REA projects by 100 percent. The 27,000/- charged is a value added tax being imposed to encourage and enable people in rural areas with limited means to get the energy," he said.
He said after REA project, customers will be connected under Tanesco's guidelines which require them to pay 177,000/- to a distance that does not need a pole.
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