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Simba Cement opposes tariff hike

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World Cement,

Reuters are reporting that Simba Cement Company Ltd. is opposing a power tariff hike in Tanzania.

Effective 1 January 2017, Tanzania’s energy regulator has approved a power tariff hike of 8.53% by The Tanzania Electric Supply Company (TANESCO). The company had sought an increase of 18.19% to stem losses, making the approved change less than half of what it needed.

The average tariff would now be increased from 242.34 Tanzania shillings (US$0.1114) per kilo-watt hour to 263.02 shillings/kwh.

Simba Cement Company, in opposition to the tariff hike, has emphasised that it will lead to increased production costs with the quality of power supply still being poor.

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