Sustainable electricity pricing in Tanzania
This project provided a brief summary of the history and detailed situational analysis of the energy sector in Tanzania. It was structured around two key questions:
- For a country anticipating a significant increase over the next 3-5 years in the supply of low-cost feedstock for electricity generation and given that high cost and poor availability of electricity is the binding constraint on private investment, how should government and the power utility determine electricity tariffs?
- In the light of the poor track-record of TANESCO, what key lessons from regulatory experiences elsewhere would help the government put in place a regime that would provide predictability in pricing, deliver a tariff that generates an appropriate degree of cost recovery, and is appropriately structured given investment requirements?
