NATIONAL INSTITUTE OF TRANSPORT

DEPARTMENT OF BUSINESS & ENTREPREURSHIP STUDIES

PROGRAMME: BACHELOR DEGREE IN HUMAN RESOURCE MANAGEMENT

MODULE NAME: PUBLIC POLICY

MODULE CODE: 08208

STUDENT NAME: ABDALLAH Fatima

REGISTRATION NUMBER: NIT/BHRM/2016/294

TASK: INDIVIDUAL: ASSIGNMENT 1

LECTURER’S NAM: DR KHADUDU

SUBMITION DATE: 30th April 2019

QUESTION: INDIVIDUAL ASSINGNMENT 01
SINCE 2000, the Tanzania electricity supply (TANESCO) has being issuing information to all
customers to reduce their power by 20%. The decision has been taken as the measure to
overcome their low supply capacity that usually to the most severe socio-economic effect. How
does a country blessed with ample energy resource, hydroelectric generating systems, coal, gas
and public private policy (with high foreign direct investment) be without power supply?

Question

a) What is the policy issue for agenda setting in this context?

b) Define the policy problem for energy policy formulation

2018/2019

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 Table of Contents
1.1 BRIEF HISTORY OF THE COMPANY. ............................................................................ 3

1.2 MISSION: ............................................................................................................................. 3

1.3 VISION: ................................................................................................................................ 3

1.4 GENERAL OBJECTIVE OF TANESCO ............................................................................ 3

1.5 Reason of poor supply of electricity in Tanzania .................................................................. 3

1.6 Poor and worn out Infrastructure .......................................................................................... 4

1.7 Electricity Theft..................................................................................................................... 4

1.8 Demands versus Supply of Electricity .................................................................................. 4

1.9Monopoly of TANESCO in Electricity.................................................................................. 4

2.0 POLICY ISSUE FOR AGENDA SETTING IN THIS CONTEXT. .................................... 5

2.1 Consequence of Electricity Interruption ............................................................................... 5

2.1.1 Changing of Working hours ............................................................................................... 5

2.1.2 Working Extra Shifts.......................................................................................................... 5

3.0 Government Strategies in minimizing electricity Interruptions ............................................ 5

3.1 POLICY PROBLEM FOR ENERGY POLICY FORMULATION ..................................... 6

3.1.1 NATURE OF THE PROBLEM ......................................................................................... 6

3.1.2 MAGNITUDE OF THE PROBLEM ................................................................................. 6

3.1.3 CAUSES OF THE PROBLEM .......................................................................................... 6

4.0 IMPACT OF THE PROBLEM ............................................................................................. 7

5.0 Solution of this public problem. ............................................................................................ 7

6.0 CONCLUSION .................................................................................................................... 8

7.0 REFERRENCE .................................................................................................................... 8

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1.1 BRIEF HISTORY OF THE COMPANY.
Tanzania Electric Supply Company Limited (TANESCO) is an organization under the Ministry
of Energy. The Company generates, transmits, distributes and sells electricity to Tanzania
Mainland and sells bulk power to the Zanzibar Electricity Corporation (ZECO) which in turn
sells it to the public in islands Unguja and Pemba. TANESCO owns most of the electricity
Generating, Transmitting and Distributing facilities in Tanzania Mainland.
The German colonialists established the first public electricity supply in Tanganyika in 1908 at
Dar es Salaam. Tanzania has abundant and diverse indigenous energy resources which are yet to
be fully exploited. The sources include; wood fuel and other biomass fuels, hydropower, natural
gas, coal, uranium, wind, geothermal and solar. Tanzania’s energy supply depends mainly on
biomass. Since 85-90% of the population are not connected to the electricity grid, the
overwhelming majority of households use wood and charcoal for cooking. One of these
companies was the Tanganyika Electric supply Company Ltd. (TANESCO) which was
established on 26th November 1931 and the other company was the Dar es Salaam and District
Electric Supply Company Ltd (DARESCO).

1.2 MISSION:
To generate transmit and supply electricity in the most effective, competitive and sustainable
manner possible

1.3 VISION:

To be an efficient and commercially focused utility supporting the development of Tanzania.

1.4 GENERAL OBJECTIVE OF TANESCO

The overall objective of the programme was to make a contribution to ensuring the economically
efficient, secure and reliable transmission of electrical power in the TANESCO grid. Two
indicators were identified to this end Productive electricity consumption accounts for more than
60% of the total electricity consumption in TANESCO’s grade.

1.5 Reason of poor supply of electricity in Tanzania

Tanzania like many other developing countries in the world is suffering from electricity
interruptions. Electricity in the country is characterized by frequent interruptions, and thus small
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business like the industry under this study and electricity users at household level who have no
alternative power sources are affected. Some of the major causes of electricity interruptions in
Tanzania are discussed.

1.6 Poor and worn out Infrastructure

Poor and worn out electricity infrastructure in Tanzania contributes to electricity interruptions.
According to (TANESCO, 2010) poor infrastructure is a major contributing factor to electricity
interruptions in Tanzania. Moreover, electricity transition and distribution lines are very old. Due
to poor and old electricity infrastructure there are frequent electricity interruptions .The
breakdown includes fall of electricity poles and electric cables, failure of the transmission cables
to carry enough load and hence electricity system fail to operate effectively.

1.7 Electricity Theft

Another contributing factor for electricity interruptions in Tanzania is theft of electricity
equipment which continues to pose serious problem in Tanzania’s energy sector. These illegal
connections may cause overload and even insufficient supply as supply becomes smaller than the
demand. These practices often lead to huge revenue loss to TANESCO which affects effective
delivery of electricity. When there is less revenue, services become worse and customers
experience more interruptions in power supply.

1.8 Demands versus Supply of Electricity

TANESCO depends on much of its electricity from hydropower as a major source In Tanzania
demand for electricity is higher than supply, this has largely contributed to interruptions of
electricity supply. In case of insufficient water, there is low production which results into low
supply of electricity. Dependency of electricity production only from hydro is a major challenge
in the country. Electricity demand is growing fast because of population growth and economic
activities which mainly involve electricity in the operations.

1.9Monopoly of TANESCO in Electricity

Sector Monopoly by TANESCO in generation, transmission and supply of electricity in
Tanzania is a major problem. According to (CTI, 2011) Tanzania’s power sector is dominated by
a single company TANESCO, under the Ministry of Energy and Minerals whose main function
is generation, transmission, and distribution of electricity in the country.

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2.0 POLICY ISSUE FOR AGENDA SETTING IN THIS CONTEXT.
Agenda setting refers to the list of subjects or problems to which the governmental officials, and
people outside of government closely associated with those officials are paying some serious
attention at any given time.

The following are the issue for agenda setting

a. Lack of heavy competition

b. Poor technology
c. Poor administration support
d. Inadequate government budget
e. Lack of alternative source of energy

2.1 Consequence of Electricity Interruption

2.1.1 Changing of Working hours

Due to the problem of power interruptions, industries have to change working time to night shifts
and working over time, so as to continue production. A study by (Hussain et al, 2012) found out
that 15.0 percent of industries in Punjab changed working time table to night shifts and 57.5
percent of industries adopted overtime work.

2.1.2 Working Extra Shifts

Power supply and distribution in Tanzania and Africa faces major challenges. Power is necessary
for any economic development in the world. But power supply in developing countries is
unreliable. The industries have to work extra shift during off-peak hours, weekends and in late
hours. This is seen in studies by (Sullivan, Terry and Mark, 1997; Alam, 2012 and Hussain et al,
2011).

3.0 Government Strategies in minimizing electricity Interruptions

The government of Tanzania recognizes power interruption problem and have put in place some
mechanisms country wide to improve the situation. The government is carrying out some
measures and different electricity projects all over the country. The government through MEM
and TANESCO is doing a number of things to cope with power interruption country wide.

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One of strategy is the improvement and increase electricity generation capacity from 1220
MW up to 1396 MW in 2014 (URT, 2014). This effort has not been fulfilled yet. Apart from
improving generation capacity, the government is implementing electricity projects such as
Makambako-Songea of kV 200, Dar es Salaam-Chalinze-Tanga-Arusha kV 400, and Iringa-
Shinyanga kV 400. It is expected that after the implementation of these projects power supply
problem will be reduced (URT, 2014).

3.1 POLICY PROBLEM FOR ENERGY POLICY FORMULATION

Policy Problem,. From the perspective of communication, however, both defining problems and
analyzing solutions rely on persuasion (Stone). And so, they are presented here for instruction in
purposeful rhetoric. In practice, when you are defining a problem, it is crucial to remain aware of
your purpose and not to confuse the two purposes, advocacy and analysis.

3.1.1 NATURE OF THE PROBLEM

The nature of this problem is a public problem since it affects many people in Tanzania
especially in rural areas whereas there is a greater shortage of electricity due to the presence of
poor transportation system which leads to occurrence of high blaming to the people.example
rural areas are the one which are affected.

3.1.2 MAGNITUDE OF THE PROBLEM

The magnitude of the problem or size of the problem in term of affection is affecting the whole
country especially in rural areas of Tanzania. This problem cover both urban and rural in our
country but a larger number of people who are affecting is rural areas but in Urban areas the is
reduced because government has locating supply electricity in town and city but still is facing
with in sufficient of electricity.

3.1.3 CAUSES OF THE PROBLEM

Poor and worn out infrastructure;

poor infrastructure is a major contributing factor to electricity interruptions in Tanzania.
Moreover, electricity transition and distribution lines are very old. Due to poor and old electricity
infrastructure there are frequent electricity interruptions .The breakdown includes fall of
electricity poles and electric cables, failure of the transmission cables to carry enough load and
hence electricity system fail to operate effectively.

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Poor technology in our country.
This is among of the challenging facing Tanzania electricity supply company since our
technology which we use is not well designed we use the local technology which perform work
for short period of time and then restructured.

Inadequate government budget;

Our country is developing country thus we cont have enough fund to invest in energy resources
that is why we depend to the developed countries which have enough funds.

4.0 IMPACT OF THE PROBLEM

The problem affects the standard of living to the people

Due to the insufficient of electricity among people in the society has lead to poor living standard
of life.

Insufficient productivity
In the industries where by insufficient of electricity may lead to plant to reduce their function
and result to lower productivity among industries. Hence this leads to become dependent due to
the poor quality of productions in the local market.

Economic stagnation,
insufficient supply electricity in Tanzania has lead to stagnation of our economy since main
economic activities has not been carried out because of shortage of electricity in some areas.

5.0 Solution of this public problem.

To improvement and increase electricity generation capacity.
This effort has not been fulfilled yet. It is expected that after the implementation of these projects
power supply problem will be reduced. Apart from improving generation capacity, the
government is implementing electricity projects such as Chalinze, Arusha, and Iringa, and other
regions which founding in Tanzania.
The government must cope with power interruptions is the renovation and
replacement of worn out electricity infrastructure which cause either electricity loss or
power cuts. Up to 2014, the government has renovated transmission and distribution lines and
reduces power loss by 19 percent country wide (URT, 2012).

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To ensure implementation of energy policies; This policy is to encourage competition in
electricity generation, transmission and distribution. Also the government is forecasting to join
electricity market where there will be importation and exportation of electricity neighbor
countries through Southern Africa Power Pool and East Africa Power Pool.

6.0 CONCLUSION

Generally; this issues can be solved by using the companies which regulate this energy like
TANESCO himself, TPDC, EWURA and REA which are the organs under the MEM. There is
need to improve performance in these energy bodies by improving and implementing energy
policies which will help to improve electricity access and availability in the country. The
government should make sure that these organs are responsible to ensure power accessibility and
reliability to the customers especially industries which are the large electricity consumers.

7.0 REFERRENCE
 Tim Jarrett and Claire Taylor, ‘Bribery allegations and BAE systems’, Standard Note:
SN/BT/5367 (House of Commons Library, Business and Transport Section and
International Affairs and Defence Section).
 British High Commission, ‘Summary of Kiswahili Press, 1 April 2009’ (British High
Commission, Dar es Salaam, Tanzania, 2009).
 Pfeffer, Jeffrey, and Gerald R Salancik.1978.1st ed. The External Control of the
Organizations:A resource Dependence Perspective. New York: Harper & Row.
 Pinda, Mizengo P.2008. “HotubayaWaziriMkuuKwenyeUfunguziwaKongamano la nne
kuhususektayaNishati Tanzania.” Dar es Salaam.
 Praktiknjo, Aaron J. 2014.“Stated preferences based estimation of power interruption
costs in private households: An example from Germany.” Energy. Vol.76:82-90.