Manufacturers fault permanent increase of power tariff by 40pc

Manufacturers fault permanent increase of power tariff by 40pc

“CTI is not against the tariff raise because it was inevitable, but it was supposed to be periodical, not permanent,” Mr Mosha told the Business Standard in Dar es Salaam over the weekend. The current move, according to Mr Mosha, would impact negatively on the competitiveness of the manufacturing sector in the region as goods from Tanzania would be expensive due to high electricity costs.

“The 40 per cent increase is too high. The rate is not acceptable and risk pulling back the export business the country’s goods enjoyed in the region,” the CTI chief said. He said in the coming days the confederation will make an impact assessment of the power tariff increment to the manufacturer s, especially on the prices of goods and its regional competitiveness.

CTI and other stakeholders recommended that the tariffs should at least rise by between 20 and 25 per cent and not the over 40 per cent that was announced. “The negative impact on Tanzania products in the regional markets will be unavoidable.

This will back tract our export drive,” Mr Moshi said The Bank of Tanzania in its last September monthly economic review shows that the value of non-traditional exports was 3,582.8 million US dollar (5.732trn/-), being 24.3 percent higher than the amount recorded during the year to August 2010.

Report shows that gold and manufactured goods accounted for about 80 percent, out of which the latter commanded 28.5 per cent. The “rise in manufactured goods is explained by increased demand for manufactured goods particularly cement, textile apparels, edible oil, plastic items, iron and steel products, wheat flour as well as paper and paper products from neighbouring countries,” BoT said in its latest report.

On other hand, the dominance of gold exports was largely attributed to the increase in gold prices in the world market. Last Thursday, Energy and Water Utilities Regulatory Authority (EWURA) announced an increase of 40.29 percent in power tariff instead of 155 per cent as requested by Tanesco. Customers using over 50kWh, general use consumers (restaurants, barber shops) currently paying 157/- per unit will be pay 221/- per unit.

Customers paying 94/- per unit as lower voltage supply consumers will now be required to pay 132/- per unit. High voltage supply consumers (mining companies, industries and factories) now paying 84/- per unit will buy each unit at 118/-. And the utility’s staff had for a long time enjoyed a special rate of 4/90 per unit.

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