EWURA commits to improve CNG stations investment environment

TANGA: THE Energy and Water Utilities Regulatory Authority (EWURA) has taken strong initiatives to enhance energy service accessibility across the country, thereby stimulating economic and social development.

EWURA Director General, Dr James Andilile said the initiatives are in compliance with Deputy PM’s directives issued during last year’s EWURA Workers’ Council held in Morogoro.

He was speaking at the fourth council meeting which the Deputy Prime Minister and Minister for Energy, Dr Doto Mashaka Biteko opened in Tanga on Monday.

Dr Andilile said the authority continues to create a favourable environment for investors in compressed natural gas (CNG) and rural fuel stations by providing guidelines that facilitate timely issuance of permits and licenses.

According to EWURA Chief, the authority is streamlining investment procedures for CNG by ensuring that construction permits, and operating licenses are issued promptly.

“In the financial year 2022/23, a total of two CNG stations received construction approvals, and this number increased to six stations in the 2023/24 financial year that,” he said.

He added: “That this is part of EWURA’s efforts to promote the use of natural gas as an alternative energy source to fuel.”

He further reported that to encourage investment in rural fuel stations, EWURA has implemented several measures to reduce construction and operational costs and attract investors.

The measures include reducing the construction permit fee from 500,000/- to 50,000/-, reducing the license fee from 1m/ to 100,000/-.

Others are simplifying the Environmental Impact Assessment (EIA) procedures, where investors are now required to submit a letter from the respective council director confirming that the proposed site is suitable for a fuel station, instead of obtaining a certificate from NEMC.

Another measure is easing land ownership requirements for rural investors, allowing them to submit a village meeting resolution indicating community approval for the construction of a fuel station instead of a title deed.

As a result of these measures, Dr Andilile said, the number of rural fuel stations has been increasing year after year. “Since 2020/21 financial year, when there were 279 stations, the number has grown to 480 in the 2023/24 financial year.

By December 2024, the number of these stations is expected to reach 515,” he said.

Moreover, the government, through the Rural Energy Agency (REA), has begun offering low-interest loans to citizens who want to invest in rural fuel stations.

Dr Andilile explained that the initiative is part of efforts to ensure reliable access to fuel energy across all regions of the country, particularly in rural areas.

Dr Biteko also directed EWURA to conduct an intensive evaluation on utilities under its wing to identify more areas that require close control by identifying indicators that limit control measures.

ALSO READ: CNG stations to be installed for government vehicles

He further called on the authority to remind utilities to strictly adhere to Customer Service Charter, saying that they were providing services that are crucial to lives of the public.

Dr Biteko further reminded EWURA and other public institutions to adhere to Corporate Social Responsibility (CSR) policies by supporting the development and improvement of social services.

EWURA has donated 50m/- to Kipumbwi Primary School in Pangani for construction of two classrooms and toilets