Sustainable electricity pricing for Tanzania

Peng, Donna; Poudineh, Rahmatallah

doi:10.26889/9781784670610

Cited by 5 publications

(5 citation statements)

References 9 publications

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“…In this regard, there is no spatial variation in electricity prices, but substantial time-variation due to tariff hikes. The price information is sourced from Peng and Poudineh (2016). The State electricity provider, TANESCO, allocates five different tariff bands, dependent on the type of electricity use of the consumer.…”

Section: Energy Pricesmentioning

confidence: 99%

Stacking up the ladder: A panel data analysis of Tanzanian household energy choices

2019

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Energy-use statistics in Tanzania reflect the country's low level of industrialization and development. In 2016, only 16.9% of rural and 65.3% of urban inhabitants in mainland Tanzania were connected to some form of electricity. We use a nationally representative three-wave panel dataset (2008-2013) to contribute to the literature on household energy use decisions in Tanzania in the context of the stacking and energy ladder hypotheses. We firstly adopt a panel multinomial-logit approach to model the determinants of household cooking-and lighting-fuel choices. Secondly, we focus explicitly on energy stacking behaviour, proposing various ways of measuring what is inferred when stacking behaviour is thought of in the context of the energy transition and presenting household level correlates of energy stacking behaviour. Thirdly, since fuel uses have gender-differentiated impacts, we investigate women's bargaining power in the decision-making process of household fuel choices. We find that whilst higher household incomes are strongly associated with a transition towards the adoption of more modern fuels, especially lighting fuels, this transition takes place in a context of significant fuel stacking. In Tanzania, government policy has been aimed mostly at connecting households to the electric grid. However, the public health, environmental and social benefits of access to modern energy sources are likely to be diminished in a context of significant fuel stacking. Lastly, we present evidence that the educational attainment of women in the household is an important aspect of household fuel choices.

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Section: Energy Pricesmentioning

confidence: 99%

Stacking up the ladder: A panel data analysis of Tanzanian household energy choices

2019

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“…Currently, remuneration for the electric power industry in Tanzania is recovered via a multi-year integral tariff, proposed by TANESCO and approved by EWURA, to be reviewed at least once in every 3 years. The integral tariff does not distinguish between the origin of costs that need to be recovered into functional segments such as generation, transmission, and distribution (Peng and Poudineh, 2016). This is a feature which reflects the fact that Tanzania's power industry structure is not yet unbundled.…”

Section: Tanzaniamentioning

confidence: 97%

“…The marginal cost-based approach, unlike the accounting approach, does not directly allocate the allowed revenues to be recovered over the tariff structure. Instead, as described in Figure 4, it allocates the Long-Run Marginal Cost (LRMC) which means the economic value of future resources required to meet incremental changes in consumption of electricity over the next 5-10 years for each category of customers (Peng and Poudineh, 2016). In other words, the marginal cost approach provides ratepayers with cost information about the future, whereas the accounting approach (average cost approach) is based on historical data and thus provides ratepayers with cost information about the past.…”

Section: Marginal Cost Pricingmentioning

confidence: 99%

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Electricity Tariff Design “Theoretical Concepts Vs Practices”: Review of Tariff Design Approaches in East Africa - Case Studies of Rwanda, Kenya, Uganda and Tanzania.

Mburamatare

Gboney²,

Dieu³

2022

IJEEP

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This paper presents a comparative analysis between the theoretical concepts of tariffs design methodologies and tariff design practices in developing countries especially in East African countries including Rwanda, Tanzania, Uganda and Kenya. The theoretical concepts impose regulatory principles to be followed by the utilities for a fair and efficient tariff. A well-defined and appropriate tariff structure must balance the financial sustainability of the sector on the one hand and the well-being of various segments of society on the other. Even if utilities in regulated markets, especially in East African Countries are currently supposed to apply dynamic pricing models, their governments are still providing significant subsidies and this can create operational inefficiencies. In addition, inappropriate dynamic pricing models can lead to cross subsidization between customers which violate the equity or non-discrimination principle of a good tariff which discourages use by the overcharged and promotes overconsumption by the subsidized. The work presented in this paper evaluate the performance of different methodologies used by developing countries to set electricity prices against the theoretical concepts of electricity dynamic pricing. It also highlights the opportunities and challenges to be addressed in order to set efficient and appropriate tariffs. The conclusion and policy recommendations are provided.

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“…-Rural electrification sets up is not well linked to the municipal, districts, regional and government -Lack of knowledge and acknowledgement in social, environmental and cumulative impacts toward the implementation of the projects determination of the electricity tariff is either allowed revenues recovered or define the tariff structure and allocation of allowed costs [75]. The revenues recovered determined by either calculating the cost of service regulation or incentive-based regulation as described in [76]. EWURA estimates the tariff of isolated mini-grid SPP based on the cost-based tariff described in [68].…”

Section: Barriers Description Sourcementioning

confidence: 99%

Assessment of hydropower resources in Tanzania. A review article

Mdee

Nielsen

Kimambo

et al. 2018

Renew. Energy Environ. Sustain.

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The hydropower resources have become an attractive means of generating electricity to the off-grid network, especially in rural areas. This article assesses the small, mini and large hydropower resources and identified to reach 5.3 GW for electricity generation in Tanzania. The technology development discussed comprises of hydro turbine manufacturers, classification and turbine selection. The barriers presented include the presence of sediment in the hydropower reservoirs, financial viability, policy and regulatory issues related to hydropower development. This reviewed article serves the investors and policymakers to understand the status of hydropower resources in Tanzania.

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Sustainable electricity pricing for Tanzania

Cited by 5 publications

References 9 publications

Stacking up the ladder: A panel data analysis of Tanzanian household energy choices

Stacking up the ladder: A panel data analysis of Tanzanian household energy choices

Electricity Tariff Design “Theoretical Concepts Vs Practices”: Review of Tariff Design Approaches in East Africa - Case Studies of Rwanda, Kenya, Uganda and Tanzania.

Assessment of hydropower resources in Tanzania. A review article

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