U.S. Government Supports Training on Energy Tariffs

Visitors inspecting Kinyerezi I Power Plant in Dar es Salaam recently. (Photo: U.S. Embassy, Dar es Salaam)
Visitors inspecting Kinyerezi I Power Plant in Dar es Salaam recently. (Photo: U.S. Embassy, Dar es Salaam)

Dar es Salaam, TANZANIA.  The Tanzanian Energy and Water Utilities Regulatory Authority (EWURA) and other energy sector stakeholders gathered from August 17-20, at the Hyatt Regency Hotel, Dar es Salaam to participate in an interactive workshop on cost-reflective tariffs. The training was organized by the U.S. based, National Association of Regulatory Utility Commissioners (NARUC) with support from the United States Agency for International Development (USAID) under the Power Africa initiative.

Cost – reflective tariffs are tariffs that have taken into account all justifiable costs of generating, transmitting, distributing and supplying electricity to various customers.  Ensuring that electricity tariffs reflect the true cost of power is a critical step in establishing financially viable electricity sectors and creating an environment primed for private investment in infrastructure.

In Tanzania, TANESCO and EWURA have made significant strides toward a cost-reflective tariff in recent years. However, as Tanzania embarks on plans to attract more private investment, especially into electricity generated from renewable sources, EWURA will be tasked with reviewing further tariff applications.

The goal of the workshop on cost-reflective tariffs was to help build capacity to create the regulatory framework and price signals that will ultimately bring power projects on line in Tanzania. Working in small teams the participants debated real-world challenges and analyzed the impact of different regulatory choices. Through this simulation, participants were able to exchange perspectives on the challenges and learn how different decisions can impact the pricing and sustainability of energy.

Tanzania is one of the six initial focus countries of Power Africa, an initiative U.S. President Obama launched in 2013 aiming to double electricity access in sub-Saharan Africa by 2018.

For more information about the Power Africa activities in this region, please visit http://www.usaid.gov/powerafrica.

To request more information about this event, please email Japhet Sanga (SangaJJ@state.gov), Senior Information Specialist at U.S. Embassy Dar es Salaam.