Unbundling of Tanesco should be done carefully: Minister

Friday May 25 2018

Minister for Energy, Dr Medard Kalemani

Minister for Energy, Dr Medard Kalemani 

By Alawi Masare @AMasare malawi@tz.nationmedia.com

Dodoma. Minister for Energy Dr Medard Kalemani said on Friday that the proposed unbundling of Tanzania Electricity Supply Company (Tanesco) should be done carefully for the interest of the nation.

He was winding up his budget estimates and responded to some issues raised by the MPs during the debate that started on Thursday.

Some lawmakers proposed dividing Tanesco into different parts and privatise others for efficiency.

Ms Esther Bulaya (Bunda Urban -Chadema) proposed the power utility into three sections of generation, distribution and transmission.

She said there have been such recommendations from international consulting firms like PWC but the government has not implemented it.

The same was a concern by Mr Nape Nnauye (Mtama - CCM) but he proposed unbundling Tanesco into two sections of generation and distribution.

However, Dr Kalemani said; "Electricity is national security and electricity is economy. We need to privatise Tanesco very carefully."

He said that the advice was good and the government was working on it.

When the Parliament convened as an expenditure committee, the issue was raised again by Mr Abdallah Mtolea (Temeke-CUF) who said Tanesco was behaving like a middle agent and raised electricity prices for no reasons.

He said Tanesco had monopolised everything and denies competition.