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Power Company Plans To Raise Tariffs 34 Percent

Tanzania hoteliers shocked by increase in price of electricity

Wolfgang H. Thome, eTN  Jul 06, 2010

(eTN) Earlier this week, the Tanzanian power company went public with plans to raise electricity tariffs by a staggering 34 percent, prompting immediate responses from consumers, industry, and hotel operators to reduce the increases to a more manageable level.

Hotels, in particular those located along the Tanzanian beaches and in Dar es Salaam, depend on reliable electricity supplies to run their air-conditioning plants and cold rooms, and one source in Dar swiftly pointed out to this correspondent: "Power bills are already at [an] all-time high and a major source of expense for us. Supply has been erratic and when we use our own back up generator it is even more costly. Now if bills are to go up by another third, we must raise tariffs ourselves, because this cannot be absorbed. It is our guests who will pay a lot more, and we worry about being competitive in the region. Kenya is bringing in a lot of green energy sources, and Uganda has found oil, but we in Tanzania have to be able to compete, not only in quality but also by pricing."

It was also mentioned that the tourism sector ought to lobby for a more moderate increase in electricity prices and be present at the public hearings government intends to hold in order to get opinions from all walks of life before either approving or rejecting target="_blank">TANESCO’s application.

Tanzania hoteliers shocked by increase in price of electricity
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