The Tanzanian Parliament has called on the government to reassess electricity tariffs following the substantial progress in the Julius Nyerere Hydropower Project (JNHPP), which is nearing completion.
The project, expected to deliver a significant increase in electricity supply, has prompted discussions on whether current pricing structures should be adjusted to provide relief to Tanzanians.
During today’s parliamentary session, Lupa MP Masache Kasaka raised a pressing question regarding the need for a new pricing strategy. He argued that since the JNHPP is now generating sufficient electricity, with surplus energy anticipated, the government should consider revising electricity tariffs to benefit consumers.
“Given the successful commencement of electricity production at JNHPP, shouldn’t the government re-evaluate and reduce electricity unit prices to ease the burden on Tanzanians?” Kasaka asked during the session.
In response, Deputy Minister of Energy Judith Kapinga emphasized that electricity pricing in Tanzania is not solely dependent on production costs. She pointed out that the pricing also includes costs related to distribution, transmission, and long-term investments in the energy sector.
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However, she assured the Parliament that Tanzania’s electricity prices remain among the lowest in East Africa, making it affordable compared to neighboring countries.
The JNHPP, a monumental project in Tanzania’s energy landscape, is currently 97.74% complete. Key infrastructure, including the main dam and turbines, has been successfully established. With the first turbine already generating 235 megawatts and connected to the national grid, the project is set to significantly enhance the country’s power supply.
The call for a review of electricity prices comes as the JNHPP reaches its final stages, marking a critical point in Tanzania’s energy production capabilities.