In the matter of an Application by the KIGOMA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY (KUWASA) For a Tariff and Charges Adjustment Background 1. On 17 th May 2011 KUWASA submitted an application for review and approval of the following regulatory actions: (a) (b) (c) (d) (e) (f) (g) increase in the current water tariff for metered customers ranging between 100% and 433%; increase in the current flat rates ranging between 233% and 2,200%; increase in meter rent by 66.67% from TZS 300 to TZS 500 per month; increase in new connection fees ranging between 75% and 100%; increase in reconnection fees ranging between 200% and 400%; introduce service charges ranging between TZS 1,000 per month to TZS 5,000 per month; introduce meter deposit charge of TZS 150,000 per new connection; and (h) the requested tariff, if approved, take effect from 1 st July 2011. Stakeholders Consultation 2. Pursuant to section 19(2) (h) of the Energy and Water Utilities Regulatory Authority Act, Cap. 414, EWURA conducted an Inquiry into the reasonableness of the proposed tariff as well as charges. This Inquiry included an economic and a technical evaluation of the Application and a public hearing that was held in Kigoma/Ujiji Municipality on 8 th September 2011 to hear the views of stakeholders. 3. During the public hearing, KUWASA made presentations explaining the basis of the Application and the justification of the 1
proposed tariff and charges increase. All stakeholders including the Public, Government Consultative Council ( GCC ), and EWURA Consumers Consultative Council ( EWURA CCC ) were given an opportunity to examine and comment on the reasonableness of the KUWASA Tariff Application. KUWASA had a chance to respond to stakeholders comments in the meeting and later by submitting written responses to EWURA. 4. EWURA CCC was concerned, among other things, with high tariff rates compared to other Lake zones water utilities' tariffs, discriminatory tariff where Expatriates are considered as a unique customer category, high connection charges, low operational efficiency, and sudden increase in personnel and maintenance costs in the year 2011/12. 5. GCC was concerned, among other things, with high debts, lack of sewerage services, low collection efficiency, high water losses, lack of regular tariff reviews as a result there was a high proposed tariff increase in one application, and unrealistic asset values resulting into high depreciation charge. 6. The Public was concerned with high water tariffs and that the tariffs were illegally increased well before KUWASA submitted to EWURA for approval, low service coverage, and shortage of water coupled with unreliable rationing schedule. 7. At the closure of the Inquiry process on 22 nd September 2011, KUWASA had reasonably responded to stakeholders comments and EWURA had gathered satisfactory and adequate information to prudently determine the application. During the review, KUWASA was requested to provide supplementary information in support of its application. Analysis and Adjustment 8. As a result of the Inquiry and Evaluation process, EWURA concluded that KUWASA s proposed tariff was reasonable except for: (a) high estimates of Operational and Maintenance costs (O&M) for 2011/12 which include i. high estimation of electricity expenses for water production arising from computational error which was corrected; ii. huge increase in distribution costs mainly due to the high budget on water meter installation costs amounting TZS 525 million per year. This was adjusted to reflect the installation cost per meter 2
which is TZS 20,000 and the 2,000 meters planned to be installed in the FY 2011/12; (b) iii. iv. high repair and maintenance costs which were adjusted to take into account the huge repair and maintenance activities conducted during 2009/10 amounting to TZS 687,866,785 which renewed the system and minimizing immediate future repair cost; and personnel expenses that was benchmarked with category B water authorities; and low estimate of NRW which was adjusted from 35% to 30% to reflect the current achievement level. 9. The proposed and adjusted Revenue Requirement is as shown in the table below. Table 1: Revenue Requirement (RR) Proposed RR 2011/12 Adjusted RR 2011/12 TZS TZS OPERATION AND MAINTENANCE EXPENSES Production 950,977,320 602,716,280 Distribution 871,023,720 337,523,720 Repair & Maintenance 359,200,000 98,760,000 Administration 577,416,144 410,765,005 Personnel 1,013,957,360 444,000,000 Financial 14,400,000 6,000,000 Events and Donation 36,280,000 26,200,000 Business Promotion 24,400,000 24,400,000 Sub-Total 3,847,654,544 1,977,865,005 CAPITAL INVESTMENT Depreciation 248,706,904 248,706,904 Contribution to Investment 198,263,010 198,263,010 Sub-Total 446,969,914 446,969,914 TOTAL REVENUE REQUIREMENT (RR) 4,294,624,458 2,424,834,919 Decision 1. The Board of Directors of EWURA having met on 16 th December, 2011 to consider this matter decided as per the Order below: 3
THE WATER SUPPLY AND SANITATION ACT (CAP. 272) ORDER No. 11-019 (Made under section 28(d)) THE KIGOMA URBAN WATER SUPPLY AND SEWERAGE AUTHORITY ("KUWASA") TARIFF ADJUSTMENT ORDER, 2011 Citation Tariff adjustment Conditions 1. This Order may be cited as the Kigoma Urban Water Supply and Sewerage Authority ( KUWASA ) Tariff Adjustment Order, 2011 and shall come into force on the 1 st January, 2012. 2. The water supply tariff within the Kigoma Urban Water Supply and Sewerage Authority (KUWASA) are hereby adjusted as specified in the Schedule to this Order. 3. The approved tariffs shall be subject to the following conditions: (a) on or before 30 th March 2012, KUWASA shall submit to EWURA its plan to: (i). (ii). (iii). increase revenue collection efficiency from the current 80.1% to 90% by June 2012; reduce Non Revenue Water from the current 35% to 30% by June 2012; and pay all its electricity debts; (b) on or before 30 th March 2012, KUWASA shall purchase and install 2000 domestic water meters; (c) on or before 30 th April 2012, KUWASA shall purchase a 250m 3 /hr new pump; (d) on or before 30 th June 2012, KUWASA shall improve service coverage through extending water distribution network from Vamia to Mji Mpya areas (4km of length) and from Mlole to Gungu (4km of length) areas; (e) on or before 30 th June 2012, KUWASA shall submit to EWURA an elaborate plan/strategy of identifying the poor and 1
providing free water services pursuant to the National Water Policy; (f) on or before 30 th June 2012, KUWASA shall submit to EWURA a status report on the implementation of customer outreach programme. A status report on the implementation of that programme shall be included in all future Applications for tariff and charges adjustment and considered by EWURA in evaluating the reasonableness thereof; and (g) KUWASA shall continue to provide EWURA with information about its financial and operating condition in accordance with the requirements of EWURA. This information will be used by EWURA to evaluate KUWASA s performance in comparison with other utilities and the improvement of its performance over time. This evaluation will be considered by EWURA in evaluating the reasonableness of all future requests for tariff adjustment. Revocation 4. The water supply and sanitation tariffs set in the year 2004 currently in use are hereby revoked. 2
SCHEDULES Table 1: Current and Approved Water Supply Tariff (Metered Customers) Category Current Tariff (TZS/m 3 ) Approved Tariff (TZS/m3) Domestic 300 630 Institutional 450 940 Commercial 500 980 Industrial 600 1,020 Kiosks 250 TZS10/20lts Expatriates 600 Re-categorised as domestic Table 2: Current and Approved Flat Rate Category Consumption Bracket (Pressure Zones) Current Charge (TZS/ Month) Approved Charge (TZS/ Month) Domestic Low 5,200 15,750 Medium 6,400 15,750 High 7,500 15,750 Institutional 10,000 No flat rate customers Commercial 15,000 No flat rate customers Industrial 20,000 No flat rate customers Expatriates 15,000 Re-categorised as domestic Table 3: Current and Approved New Connection Fee Category Current Fee (TZS) Approved Fee (TZS) Domestic 40,000 20% of connection cost Institutional 50,000 20% of connection cost Commercial 60,000 20% of connection cost Industrial 60,000 20% of connection cost Expatriates 60,000 Re-categorized as domestic Table 4: Current and Approved Reconnection Fee Category Current Fee (TZS) Approved Fee (TZS) Domestic 5,000 10,000 Institutional 10,000 15,000 Commercial 15,000 15,000 Industrial 15,000 20,000 Expatriates 15,000 Re-categorized as domestic 3
Table 5: Current and Approved Meter Rent Category Current Charge (TZS/Month) Approved Charge (TZS/Month) All Customers 300 500 Table 6: Current and Approved Meter Deposit Charge Category Current Charge (TZS/New Connection) Approved Charge (TZS/New Connection) All Customers - - Table 7: Current and Approved Service Charge Category Current Charge (TZS/Month) Approved Charge (TZS/Month) Domestic - 1,500 Institutional - 2,200 Commercial - 2,300 Industrial - 3,300 Kiosks - - Expatriates - Re-categorized as domestic Dar es Salaam 16 th December 2011 HARUNA MASEBU Director General 4
Ombi la Kurekebisha Bei za Majisafi na Majitaka la MAMLAKA YA MAJISAFI NA MAJITAKA KIGOMA (KUWASA) Utangulizi 1. Tarehe 17 Mei 2011, Mamlaka ya Udhibiti wa Huduma za Nishati na Maji ( EWURA ) ilipokea ombi kutoka KUWASA kuhusu yafuatayo: (a) kuongeza bei ya sasa ya maji kwa wateja wenye dira kwa kiwango cha kati ya asilimia 100 na 433; (b) kuongeza bei ya sasa ya maji kwa wateja wasio na dira kwa kiwango cha kati ya asilimia 233 na 2,200; (c) kuongeza kodi ya dira kwa asilimia 66.67 kutoka TZS 300 hadi TZS 500 kwa mwezi; (d) kuongeza ada ya maunganisho mapya ya maji kwa kiwango cha kati ya asilimia 75 na 100; (e) kuongeza ada ya kurejesha maji baada ya kukatiwa kwa kiwango cha kati ya asilimia 200 na 400; (f) kuanzisha tozo ya huduma ya kati ya TZS 1,000 kwa mwezi hadi TZS 5,000 kwa mwezi; (g) kuanzisha amana ya dira ya TZS 150,000 kwa kila unganisho jipya; na (h) kupendekeza kuwa bei na tozo hizo kama zitapitishwa zianze kutumika rasmi tarehe 1 Julai 2011. Ushirikishwaji wa Wadau 2. Kwa mujibu wa kifungu cha 19(2)(h) cha Sheria ya Mamlaka ya Udhibiti wa Huduma za Nishati na Maji, Sura ya 414, EWURA ilifanya taftishi kuhusu uhalali wa ombi la kurekebisha bei na tozo zilizopendekezwa. Taftishi hiyo ilihusisha tathmini ya masuala ya kiuchumi na ya kiufundi pamoja na kufanya mkutano wa taftishi tarehe 8 Septemba 2011 katika Manispaa ya Kigoma/Ujiji ili kusikia maoni ya wadau. 3. Wakati wa taftishi, wadau wakiwemo, wananchi, Baraza la Ushauri la Serikali (Government Consultative Council ( GCC )), na Baraza la Ushauri la Watumiaji wa Huduma zinazodhibitiwa na 1
EWURA (Consumers Consultative Council ( EWURA CCC )) walipata fursa ya kuchunguza na kutoa maoni yao kuhusiana na uhalali wa ombi hilo la KUWASA. KUWASA vilevile ilipewa fursa ya kujibu moja kwa moja hoja za wadau kwenye mkutano huo na pia kwa kuwasilisha EWURA majibu ya hoja za wadau kwa maandishi. 4. EWURA CCC walihoji, pamoja na mambo mengine, bei kubwa ya maji kulinganisha na Mamlaka nyingine za maji zilizopo katika kanda ya Ziwa; kuwepo kwa bei tofauti kati ya wateja wa majumbani ambao ni raia na wale wasio raia; ada kubwa ya maunganisho mapya ya maji; ufanisi duni wa kiutendaji; na ongezeko kubwa katika gharama za utumishi na ukarabati kwa mwaka 2011/12. 5. GCC walihoji, pamoja na mambo mengine, madeni makubwa ya umeme; ukosefu wa huduma za majitaka; ufanisi duni wa kukusanya mapato; upotevu mkubwa wa maji; ukosefu wa mapitio ya mara kwa mara ya bei za maji kulikopelekea KUWASA aombe nyongeza ya kubwa ya bei ya maji kwa mara moja; na gharama kubwa na zisizothibitishwa za rasilmali za Mamlaka zilizopelekea kuwepo na mapendekezo makubwa za uchakavu wa mitambo. 6. Wananchi walihoji kuhusu ongezeko kubwa la bei ya maji, na kwamba ongezeko hilo lilianza kutumika hata kabla KUWASA haijawasilisha EWURA maombi yake kwa kupitishwa; wigo mdogo wa utoaji wa huduma; na tatizo la upungufu wa maji linaloambatana na ratiba isiyofuatwa vizuri ya mgao wa maji. 7. Wakati wa kuhitimisha taftishi tarehe 22 Septemba 2011, KUWASA iliweza kujibu hoja za wadau kwa kiasi cha kuridhisha, na EWURA ilipokea maoni ya kutosha kuweza kufanya maamuzi. Wakati wa uchambuzi wa ombi, KUWASA ilitakiwa, na ilitoa maelezo ya ziada kuhusu ombi lao. Uchambuzi na marekebisho 8. Kufuatia kukamilika kwa mchakato wa taftishi na uchambuzi, EWURA imefikia uamuzi kwamba ombi la nyongeza ya bei lina mantiki na ni halali isipokuwa: (a) Makisio makubwa ya gharama za uendeshaji na matengenezo (O&M) kwa mwaka 2011/12 yanayojumuisha i. makisio makubwa ya gharama za umeme katika uzalishaji maji zilizotokana na makosa ya kimahesabu ambazo zilirekebishwa; 2
ii. iii. iv. gharama kubwa za usambazaji zilizotokana na makisio makubwa ya gharama za kufunga dira za takriban TZS 525 milioni kwa mwaka. Gharama hizi zilirekebishwa kwa kuzingatia gharama za wastani za kufunga dira moja ambayo ni TZS 20,000 na idadi ya dira 2,000 zilizopangwa kufungwa katika mwaka wa fedha wa 2011/12; gharama kubwa za ukarabati na matengenezo zilizorekebishwa kwa kuzingati matumizi makubwa ya kasma hiyo katika mwaka wa 2009/10 za kiasi cha TZS 687,866,785 ambazo ziliboresha mtandao na kupunguza ulazima wa kufanya ukarabati na matengenezo makubwa kwa kipindi kifupi kijacho, na gharama za utumishi ambazo zilirekebishwa kwa kuzilinganisha na Mamlaka nyingine za maji za Daraja B; na (b) makisio makubwa ya upotevu wa maji ambayo yalirekebishwa kutoka asilimia 35 hadi 30 ili kuendana na mafanikio ya sasa yaliyofikiwa ya kuzuia upotevu wa maji. Maamuzi 9. Maombi na marekebisho ya mahitaji ya mapato ya KUWASA ni kama inavyoonyeshwa kwenye Jedwali hapa chini. Jedwali 1: Mahitaji ya Mapato Mapendekezo ya Mapato, 2011/12 Mapato Yaliyoidhinishwa, 2011/12 TZS TZS GHARAMA ZA UENDESHAJI NA MATENGENEZO Gharama za Uzalishaji 950,977,320 602,716,280 Gharama za Usambazaji 871,023,720 337,523,720 Gharama za Ukarabati na Matengenezo 359,200,000 98,760,000 Gharama za Utawala 577,416,144 410,765,005 Gharama za Utumishi 1,013,957,360 444,000,000 Gharama za Fedha 14,400,000 6,000,000 Gharama za Matukio na Michango 36,280,000 26,200,000 Gharama za Mahusiano na matangazo 24,400,000 24,400,000 JUMLA NDOGO 3,847,654,544 1,977,865,005 GHARAMA ZA UWEKEZAJI Uchakavu wa Mitambo 248,706,904 248,706,904 Kuchangia Uwekezaji 198,263,010 198,263,010 JUMLA NDOGO 446,969,914 446,969,914 JUMLA KUU 4,294,624,458 2,424,834,919 3
10. Katika kikao chake cha tarehe 16 Desemba 2011, Bodi ya Wakurugenzi ya EWURA ilijadili ombi la KUWASA na kutoa maamuzi kama inavyoonyeshwa kwenye Agizo hapa chini: 4
SHERIA YA MAJISAFI NA MAJITAKA (SURA NA 272) AGIZO Na. 11-19 (Imetolewa kwa mujibu wa Kifungu Na.28 (d)cha Sheria ya Majisafi na Usafi wa Mazingira, 2009) MAMLAKA YA MAJISAFI NA MAJITAKA KIGOMA ( KUWASA ), AGIZO LA KUREKEBISHA BEI ZA HUDUMA ZA MAJI, 2011 Kichwa cha Agizo Marekebisho ya Bei Masharti 1. Agizo hili litajulikana kama, Mamlaka ya Majisafi na Majitaka Kigoma ( KUWASA ), Agizo la Kurekebisha Bei za Huduma ya Maji, 2011 na litaanza kutekelezwa kuanzia tarehe 1 Januari, 2012. 2. Bei za maji za Mamlaka ya Majisafi na Majitaka Kigoma ( KUWASA ) zinarekebishwa kulingana na majedwali yaliyopo katika Agizo hili. 3. Bei zilizopitishwa zitaambatana na masharti yafuatayo: (a) (b) (c) (d) Ifikapo tarehe 30 Machi 2012 au kabla ya hapo, KUWASA itawasilisha EWURA mpango wake wa: (i). kuongeza kiwango cha ufanisi wa ukusanyaji mapato kutoka asilimia 80.7 cha sasa hadi kufikia asilimia 90 ifikapo mwezi Juni 2012; (ii). kupunguza kiwango cha upotevu wa maji kutoka asilimia 35 cha sasa hadi kufikia asilimia 30 ifikapo mwezi Juni 2012; na (iii). kulipa madeni yote ya umeme; ifikapo tarehe 30 Machi 2012 au kabla ya hapo, KUWASA inatakiwa kununua na kufunga dira za maji 2,000 kwa wateja wake wa majumbani; ifikapo tarehe 30 Aprili 2012 au kabla ya hapo, KUWASA inatakiwa kununua mashine mpya ya kusukuma maji yenye uwezo wa kusukuma mita 250 za ujazo kwa saa; ifikapo tarehe 30 Juni 2012 au kabla ya hapo, KUWASA inatakiwa kuongeza mtandao wake wa huduma ya maji kwa kuongeza mtandao wa usambazaji maji kutoka eneo 1
la Vamia hadi Mji mpya (kwa umbali wa kilomita 4) na kutoka eneo la Mlole hadi Gungu (kwa umbali wa kilomita 4); (e) (f) ifikapo tarehe 30 Juni 2012 au kabla ya hapo, KUWASA inatakiwa kuwasilisha EWURA mpango/makakati wake wa kina wa kuwatambua wateja wasio na uwezo wa kulipia maji kwa minajili ya kuwapa huduma hiyo bure kwa mujibu wa Sera ya Taifa ya Maji; ifikapo tarehe 30 Juni 2012 au kabla, KUWASA inatakiwa iwe imewasilisha EWURA taarifa ya maendeleo ya utekelezaji wa mpango wa kuimarisha mahusiano, mawasiliano, utoaji habari na uelimishaji wa wateja (customer outreach). Taarifa ya utekelezaji wa mpango huo iwasilishwe EWURA katika maombi yote yajayo ya kurekebisha bei za huduma hiyo. EWURA itazingatia taarifa hiyo wakati wa kufanya tathmini ya uhalali wa maombi husika; na Utenguzi (g) KUWASA itaendelea kuwasilisha kwa EWURA taarifa zake za fedha na utendaji kwa mujibu wa mwongozo wa EWURA. Taarifa hizi zitatumiwa na EWURA katika kufanya tathmini ya utendaji wa KUWASA ikilinganishwa na vyombo vingine vya utoaji wa huduma za maji na uboreshaji wa huduma zake. EWURA itazingatia tathmini hii katika kufanya maamuzi ya maombi yote yatakayowasilishwa na KUWASA katika siku zijazo. 4. Bei za Majisafi na Majitaka zinazotumika sasa zilizopangwa mwaka 2004 zinatenguliwa. 2
KIAMBATANISHO Jedwali 1: Bei ya Maji ya Sasa na Iliyoidhinishwa (Wateja wenye Dira) Kundi la Wateja Bei ya Sasa (TZS/m 3 ) Bei Iliyoidhinishwa (TZS/m3) Majumbani 300 630 Taasisi 450 940 Biashara 500 980 Viwanda 600 1,020 Magati 250 TZS10/lita 20 Wataalam toka Nje ya Nchi 600 - Jedwali 2: Bei ya Maji ya Sasa na Iliyoidhinishwa (Wateja wasio na Dira) Kundi la Kiwango cha Bei ya Sasa Bei Wateja Msukumo wa Maji (TZS/ Mwezi) Iliyoidhinishwa (Pressure Zones) (TZS/ Mwezi) Majumbani Kidogo 5,200 15,750 Cha Kati 6,400 15,750 Kikubwa 7,500 15,750 Taasisi 10,000 Hakuna Wateja Wasio na Dira Biashara 15,000 Hakuna Wateja Wasio na Dira Viwanda 20,000 Hakuna Wateja Wasio na Dira Wataalam toka Nje ya Nchi 15,000 Kundi hili litakuwa la Wateja wa Majumbani Jedwali 3: Ada ya Sasa na Iliyoidhinishwa ya Maunganisho Mapya ya Maji Kundi la Wateja Ada ya Sasa (TZS) Ada Iliyoidhinishwa (TZS) Majumbani 40,000 Asilimia 20 ya Gharama ya Maunganisho Taasisi 50,000 Asilimia 20 ya Gharama ya Maunganisho Biashara 60,000 Asilimia 20 ya Gharama ya Maunganisho Viwanda 60,000 Asilimia 20 ya Gharama ya Wataalam toka Nje ya Nchi Maunganisho 60,000 Kundi hili litakuwa la Wateja wa Majumbani 3
Jedwali 4: Ada ya Sasa na Iliyoidhinishwa ya Kurejesha Huduma ya Maji baada ya Kukatiwa Kundi la Wateja Ada ya Sasa (TZS) Ada Iliyoidhinishwa (TZS) Majumbani 5,000 10,000 Taasisi 10,000 15,000 Biashara 15,000 15,000 Viwanda 15,000 20,000 Wataalam toka Nje ya Nchi 15,000 Kundi hili litakuwa la Wateja wa Majumbani Jedwali 5: Kodi ya Dira ya Sasa na Iliyoidhinishwa Kundi la Wateja Kodi ya Sasa (TZS/Mwezi) Kodi Iliyoidhinishwa (TZS/Mwezi) Wateja Wote 300 500 Jedwali 6: Amana ya Dira ya Sasa na Iliyoidhinishwa Kundi la Wateja Amana ya Sasa (TZS/Unganisho) Amana Iliyoidhinishwa (TZS/Unganisho) Wateja Wote - - Jedwali 7: Tozo ya Huduma (Service Charge) ya Sasa na Iliyoidhinishwa Kundi la Wateja Tozo ya Sasa (TZS/Mwezi) Tozo Iliyoidhinishwa (TZS/Mwezi) Majumbani - 1,500 Taasisi - 2,200 Biashara - 2,300 Viwanda - 3,300 Magati - - Wataalam toka Nje ya Nchi - Kundi hili litakuwa la Wateja wa Majumbani Dar es Salaam 16 Desemba 2011 HARUNA MASEBU Mkurugenzi Mkuu 4