Tanzania's electricity prices are lower than in other East African countries, according to Deputy Minister of Energy, Hon. Judith Kapinga.
Kapinga credited the to government subsidies on electricity costs on August 30, 2024, in Dodoma, while responding to questions from Members of Parliament.
Policy makers demanded to know whether the start of electricity generation at the Julius Nyerere Hydropower Project (JNHPP) would reduce electricity costs and when the government plans to lower prices.
“The current price of electricity already subsided. The average price of a subsidized unit is 100 Tanzanian shillings for regular usage under 75 units per month. Without subsidies, the price is 292 shillings per unit,” she told the parliament.
Consumers using more than 75 units per month pay 292 shillings per subsidized unit instead of 320 shillings without subsidies.
She said the government will continue to review TANESCO’s service costs and adjust prices based on production, transmission, and distribution costs.
In response to questions about extending electricity to mining areas in Chunya, Mbeya region, Kapinga instructed the Rural Energy Agency (REA) to ensure the project is completed quickly.
On the Hanang power station in Manyara, she noted that construction would take place in the second phase of the National Grid Strengthening Project.
Kapinga also mentioned that Tanzania has about 120 islands, and the government is working on connecting them to the national grid.
Currently, the islands rely on solar power, with government subsidies of 50% to 55% to ensure reliable electricity for residents.