Local Management of Rural Power Supply

This report evaluates a pilot project for the local management of rural electricity supply in Tanzania, specifically focusing on the Urambo Electric Consumers Co-operative Society (UECCO). It examines the transition from a state-managed utility model (TANESCO) to a community-managed cooperative, analyzing technical, financial, and sociological outcomes.

• The Urambo Electric Consumers Co-operative Society (UECCO) demonstrated that rural consumers in Tanzania are willing to pay significantly higher tariffs than the national subsidized rates to maintain electricity services. While TANESCO tariffs for small consumers ranged between 0.015 and 0.05 USD/kWh, UECCO's tariff reached 0.56 USD/kWh by July 1997.
• The transition from un-metered flat rates to metered consumption led to a significant reduction in average system load and improved financial viability. In Urambo, the average load dropped from approximately 77 kW in December 1994 to 41 kW in June 1997, as consumers adjusted their usage to the higher metered costs.
• Financial sustainability for the Urambo cooperative was difficult to achieve due to high operating costs and initial liquidity problems. By 1997, UECCO covered nearly 75% of its costs, including maintenance and full capital costs, which the report notes is a better performance than TANESCO's isolated diesel branches, which typically run at a deficit.
• Rehabilitating old diesel generator sets proved to be an inefficient and costly strategy. In Urambo, the cost of spare parts for rehabilitation reached 55,935 USD by the end of 1995, and the process was delayed because the equipment was no longer manufactured.
• The load structure in Urambo shifted from being dominated by lighting in 1994 to a mix where appliances accounted for 70% of the connected load by August 1997. There was a particularly dramatic increase in the number of video players, rising from 15 to 47.
• Sociological evaluations indicate that electrification provided significant benefits for women, particularly in terms of improved evening lighting, which facilitated cooking, children's studying, and increased home security.
• The high cost of electricity acted as a barrier to industrialization in Urambo. Small industries did not use the cooperative's electricity because it was only available in the evenings, was perceived as too weak for industrial loads, and was more expensive than running their own generator sets.
• Compact Fluorescent Lamps (CFLs) were found to be a financially beneficial alternative to incandescent bulbs for consumers in Urambo, provided they last more than 673 hours. However, fluorescent tubes were identified as the most cost-effective lighting option overall.
• Individual photovoltaic (PV) systems were generally found to be less financially attractive than a traditional diesel-supplied system for the average consumer in Urambo, unless the traditional system's capacity was under-utilized by more than 50%.
• The report recommends the establishment of a national 'Advisory Board for Rural Electrification Cooperatives' (ABREC) to provide technical and administrative support to local initiatives, ensuring they are financially viable and sustainable.

APA

Gullberg, M., Katyega, M., & Kjellstrom, B. (1999). Local Management of Rural Power Supply. Stockholm Environment Institute. https://www.sei.org/mediamanager/documents/Publications/SEI-Gullberg-LocalManagementOfRuralPowerSupply-1999.pdf

Chicago

Gullberg, Monica, Maneno Katyega, and Bjorn Kjellstrom. Local Management of Rural Power Supply. Stockholm Environment Institute, 1999. https://www.sei.org/mediamanager/documents/Publications/SEI-Gullberg-LocalManagementOfRuralPowerSupply-1999.pdf.

Wikipedia

{{cite report |last1=Gullberg |first1=Monica |last2=Katyega |first2=Maneno |last3=Kjellstrom |first3=Bjorn |title=Local Management of Rural Power Supply |publisher=Stockholm Environment Institute |date=1999 |url=https://www.sei.org/mediamanager/documents/Publications/SEI-Gullberg-LocalManagementOfRuralPowerSupply-1999.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gullberg1999local, author = {Gullberg, Monica and Katyega, Maneno and Kjellstrom, Bjorn}, title = {{Local Management of Rural Power Supply}}, institution = {Stockholm Environment Institute}, year = {1999}, url = {https://www.sei.org/mediamanager/documents/Publications/SEI-Gullberg-LocalManagementOfRuralPowerSupply-1999.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }