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    Financial Statement 2018

    Uploaded by

    Jontelli Simon
    For enginners

    Copyright:

    © All Rights Reserved
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    of 117
    named Meee Oy ULAR Roa aie Us ‘THE UNITED REPUBLIC OF TANZANIA NATIONAL AUDIT OFFICE REPORT OF THE CONTROLLER AND AUDITOR GENERAL ON THE ‘CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS OF ‘TANZANIA ELECTRIC SUPPLY COMPANY LIMITED FOR THE YEAR ENDED 30°" JUNE 2018 ‘The Contaller ang Ausitor General atonal Audt Ofes, Tanzania Eimsi& Young ‘Samore Avenve/Oho Steet 4 Floor, Fanhouse Tower Pict No. 34/1 Ursin South New |P.0. Box soso, Bagamoyo Road | Der Es Salaam P.O fox 2475, Tet 255 (022) 211515718, Fax. 255 (022) 2417527 Emal: geag@inae 9012 Fax+255 22 2000948 Wee nao ge ‘Weasiterip:nwe ey com Apri, 2019 ‘TANZANIA ELECTRIC SUPPLY COMPANY LIMITED [REPORT OF THE DIRECTORS AND ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 20 JUNE 2018 conTents NAO Vision and Meson Statements st of Abbreviations Company information Ropar ofthe Directors Stetoment of Drecters'Responsibities Decoration of the Head of Finance Independent Audtor’s Report CConsofidated and Separate Financiol Statement Consolidated and Separate Statements of Prft or Loss and Other ‘Gomprenensive Income Consolidated and Separate Statements of Financial Poston CConcolidated and Separate Statements of Changes in Equity Consolidated and Separate Statements of Cash Flows ‘Notes tothe Consolidated and Company Financial Statements PAGE a3 2 53-34 se 8-40 ‘TANZANIA ELECTRIC SUPPLY COMPANY LIMITED. REPORT OF THE DIRECTORS AND ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 Office of the Controller and Auditor General, National Audit Offe The United Republic of Tanzania (Established undar Aneta 143 ofthe Constitution of the United Republic of Tanzania) ‘The statutory duties and responsibillies of the Conttollar and Autor General ae given under Aficle 143 of the Constiuion of the Unted Republic af Tanzania of 1977 irevised £2008) and amplified in the Public Aust Act No. 11 ef 2008. Vision “Tobe @ centre of excellence in public sector austing Mission ‘To provide ecient audit services to enhance eccountabily and valve for meney in the collection and use of public resources In providing quality services, NAO is guided by the following Core Values: ¥ Objectivity: We are an impartial erganizaton, offering services to our ers in an ‘objective, and unbiased manner ¥ Excellence: We are professionals proving high quay aust services based on best practicas; Integrity: We observe and maintain high standards of ethica! behaviour and the rule oa Y People focus: We focus on stakeholders! needs by bullsing @ culture of good customer care and having competent ane motlvated workforce: ¥ tanovation: We are = creative organization that constantly promotes a eukure of veloping and accepting new ideas rom insie and outsie the organizator; and ¥ Best resource utilisation: We are an ergarisation that values and uses pull resources entsted to in efficient, economic and effective manner. We do this by:- Contributing to better stewardship of public funds by ensuring that our clients oro ‘accountable forthe rescurces entuste to them Helping to improve the quay of public services by supporting innovation onthe use ‘of public resources: ¥ Providing technical advice to our clients on operational gaps in thelr oserating systoms Systematically invohe our clients in the aud process an uit cycos: and ¥ Providing aud stat with adequate working tools and facies that promote independence, ‘TANZANIA ELEGTRIG SUPPLY COMPANY LIMITED [REPORT OF THE DIRECTORS AND ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 {IST OF ABBREVIATIONS: ‘No. [Abbreviation Meaning i [ACCC ‘Audit Cooiperate & Governance Comrie ‘A108. ‘Afcan Davelopment Bank 3 [ADF ‘Afican Dovelopment Fund 4 [ARC ‘Au and Risk Commitee ‘5 AFO ‘Aican Fund Development 6 TaM ‘Aulomialie Water Reader 7 [emp Backbone Transmission ivestrient Project 3 [CAG ‘Contolr and Austor General '3_[ccry ‘Closed Cou Television 10_[0s, ‘Corporate Govemance 11 [ese ‘Corporate and Govemanice Gamitis 32 [ews ‘Corporate Wanagement System 73 CIP. ‘Capial Wore Progress ¥4_[ OROC, Disaster Recovery Osta Gone, $5. [DPRP Disaster Preparedness and Response Pan 38 [E0cr Economie Developmen! Cooperation Fund 7 [EIB European investment Bank 18 [ews Environmental Management Sieh 18 [EPPS Emergency Power Producer 720. PETOCO lectesl Transmission, Disiibuton and Waintenance Company Lites 21 [ESA Envronfienial and Sool ose Assessment 2 TESUP, Environmental and Socal Management Pan 23. feo! Expression of irterest 24 [ERE Enrpise Resouiee Panning 25 se Ecipse Enterprise Eaton 25_| GEPF Government Employees Pensions Fura ar (Gis. (Geograohical Information System 28_| HRC, Huma Resources and Remunerallon Commies 29,15 Internationa! Accounting Standares 30.10 Thformation and Communication Technolog 3 [IFC Intemational Fnance Company 32 [FRC Internationa’ Fnancil Reporting Inleroretaions Commitee 33. [IFRS Iniemationai Financial Reporting Standards 34. [15S Integrated Secunty Management Syston, 35. IPOC, Investment, Planning and Operations Commits 36, [IPPs Independent Power Producers 37 [IPT Independent Power Tanearia Lined 38_[1PMPLS Internet Protecct Mut-ProtecolLabal Switch 38 JCA Japan international Development A 40_[KAWWEU. Kempeni Kamala Weziwa Umeme itm Kiometere [KV Kia Volts 43, [LAE Local Aunoriy Pension Fund ‘aa. [LPUs Large Power Users TANZANIA ELECTRIC SUPPLY COMPANY LIMITED [REPORT OF THE DIRECTORS AND ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018, UST OF ABBREVIATIONS No [Abbreviation | Meaning 48 LOTO Lock Out and Tag Out a6 LV Low Voltage a7 iin 48, Mega Wal 48. NVA Mega Vol Amp 0. [Mv ‘Medium Vattage 51. NAOT, ‘National Audit Offee of Tanzania 52] NBA ‘Nalonai Board of Accountanis and Auditors 53. [NOI ‘Non-contoing interest 54, [NEMC ‘National Environmental Management Cauncl 35. [NSSF ‘Nalonal Social Secury Fund’ [NOK Norwegian Keanar 37 [OCl ‘thar Comprehensive TSOMS 38, ONG: ‘One Winute Goal 38. [PARK Private Automatic Branch Exchange 60. [PPE ‘Property Pan! and Equipment 1. [PPF Parastalals Pension Fund 82_[ PMU, ‘Procurement Management Unit 63. [PAPS Project Affected Persons 84. [PSWP) Powor System Master Plan 85, | SPF Pubic Senvice Pensions Fund 88. [RAP Resstiemart Acton Plan 97 [REA ural Energy Acer 98. [REF Rural Energy Fund 8_TRPU, Revenve Protection URE 70. | Row Right of wa} Ti, [SCADA ‘Supervisory Control snd Data Acquisiion 72. [SCBHK ‘Slandard Chartered Bark Fong Kong 73. [S0R ‘Special Drawing Rights 74. [SEA ‘Strategic Environmental Asseseriont 75 [SEPC ‘Shanghai Electric Power Company Lid 75_| SGC ‘Shengtan Power Generation Company Lied a7 Tow. “Tanzania Concrete Poles Manufacturing Company Lined 7e_[TEDAP “Tanzania Energy Development and Aooess Expansion Projecl. 73_| TDC “Tanzania Geothermal Development Company Limted 30 [TL “Transmigsion ine ‘at URT. “The Unies Republic of Tanzania 2 [27K “Zambia ~ Tanzania - Kenya poner ilerconnedior project ‘TANZANIA ELECTRIC SUPPLY COMPANY LIMITED REPORT OF THE DIRECTORS AND ANNUAL FINANCIAL STATEMENTS. FOR THE YEAR ENDED 20" JUNE 2018 ‘COMPANY INFORMATION Registered offi Tanzania Electric Supaly Company Limited UUbungo Head office, ‘Umeme Park Morogoro Road P.O, Box 8024 Dar es Salaam, Tanzania ain Bankers: National Bank of Commerce Limes P.O. Box 8062 Dar os Salaam, Tanzania National Merofinance Bank (NME) Lis P.0,Box 9031 ares Salaam, Tanzenia ROB Bank PLC P.0, Box 2802 Dares Salaam, Tanzania “1B Corporate Bank Liles P.0, Box 9102 Dares Selaam, Tanzania P.O. Boxese Dares Salaam, Tanzania Lawyers: Nextaw Advocates PPF Tower, th Floor Garden Avenue /Ohio Street P.O. Box 75878 Dares Salaam, Tanzania, Company Secretary’ (Gs atthe dote of Financial Statements) Advocate Amos M, Nee Gematin Road. P.O. Box 483, Dodoma, Tanzania ‘The Controller and Audtoe General National Audit Ottce Samara Avenue! Ohio Sirset P.O. Box 9080 Dares Salaam, Tanzania Cttbank Tanzania Limited P.O, Box 71625 Dar oe Salaam, Tanzania Barclays Bank Tanzania Lintes P.0, Box 5137 Dar 2s Salaam, Tanzania Commercial Bank of Afsca Tanzania Lid P.0, Box 9640 Dares Salaam, Tanzania Bank of Tanzania P.0. Box 2630 Dar es Salaam, Tanzania Ado Attorneys Plot no.1 Block 78, Comer of Ururu AUvingstene Srvet P.O. Box 5127 Dares Salaam, Tanzania, Company Secretary (As af the end ofthe franca} period) Me Iso kin LUpunge Head office, ‘Umeme Park Morogoro Read P.0 Box 9024 Dares Salaam, Tanzania Emet & Young Goriied Public Accountants Tanhouse Tower (4" Foor) P.O. Bex 2875 Dares Salaam, Tanzania ‘TANZANIA ELECTRIC SUPPLY COMPANY LIMITED. REPORT OF THE DIRECTORS FOR THE YEAR ENDED 30" JUNE 2018 INTRODUCTION ‘The Ditectors submit thelr report together with the contcdated and separate Fnancial statoments for the year ended 30 June 2018, which disclose the state of ears of Tanzania Electic Supply Company Limited (the "Company’ or "TANESCO") and its tos subsiciaies. These are Tanzania Geothermal Development Company Lintad, Hlectical ‘Transmission and Distribution and Maintenance Company Limited and Tanzania Gencrete Poles Manufacturing Company Limited together, the "Group" as at that dat). 2 INCORPORATION ‘The Company was incorporated in Tanzania under the Companies Act, 2002 a8 a lites Sabilty company. Having alts shares held by the Goverment ofthe United Republic of Tanzania, itis 3 public corporation governed by the Public Corporations Act, revised edtion 2002, ‘The subshtiary companies were incorporated as follows: Tanzania Gesthermal Development Company Limited on 19 November 2013, Electcal Transmission, Ditibuton ‘and Maintenance Compary Limited on 7 June 2016 and Tanzania Concrele Poles Manufacturing Company Limes on 16% Cecember, 2034, each as a lmniee lablity company. The subsidiaries are each 100% owned by TANESCO, 3. VISION STATEMENT To be an ecient and commercially focused uty supporting the development of Tanzania and tobe a powerhouse of Eas Afioa 4. MISSION STATEMENT ‘To generate, purchase, transmit, supply and sell electricity in the most effective, competitive and sustainable manner possible 5. PRINCIPAL ACTIVITIES. ‘The Company's principal actites are. generation, purchasing, transmission, ditbuton and seling of slecity tothe Mainjang Tanzania 28 well as Gulk supply fo Zanabar and neighbouring counties. Electiciy is genefated at seven (7) hydro power plants (ramely Kidatu, Mera, Kinane, New Pargari, Hale, Nyumba ya Mungu. and Uwemba) and swenty four (24) theimal power plants (namely Kinyerezt |, Kinyerez! |i, Ubungo Gas Pint, Tegeta Gas Plant, Ubungo Wi Gas Plant, Nyakato GOMW power Plant at Mwanza, 2uzu at Bodoma, Binaramulo, Sukoba Urban, Kasuis, Kondo, Klgoma ean, Livale, Loiondo, Ludewa, Mafia, Mbinga, Mpanda, Mvara, Namtumbo, Ngara Somanga, Songea, Sumbawanga and Tunduru). AL’ hydo powor plants and seven (7) thermal power planis are connacted to the National grit ‘Toe Company imports power trom Uganda and Zambia The Compary has_long tem ower purchase agreements with Independent Power Producers (IPPs), namely Independent Power Tanzania Limited (IPTL), Songas Limited, Tanganyika Watle Company Limited (TARWAT), TPC Limited, Andoya, ‘Mwenga, Tulla, ow! and Ngombeni TANZANIA ELECTRIC SUPPLY COMPANY LIMITED REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 30™ JUNE 2018 5, PRINCIPAL ACTIVITIES (Continued) |. Projects implemented or continued to be implemented duting the year 2) In collaboration with REA, Government Fundod Phase Il lection projacsin alrogions of Mainland Tanzania have been completed wih the exception of project in Kilmarjaro ‘and Singlda regions where the average implementation status 78% as the contact between REA and the Contraciar Spencon Services Lid was terminated for flue la abide by contract requirements. Up to 30"June 2018, ali 12%lstner headquarters have been flectrfed including Inst cf Tanganyika cistict headquarters. The total cat for this project funded! by the Government tarough Rural Energy Fund (REF) is estimated to be T2S 881 bilfon. Se far, curent total payment to contractors is TS 826 5 milion as per the felling ‘works: Construction of 16.838kin out of 16,100.48km MV line, 8788. 7km out of 10.031k Vine, instalation of 3.869 out of 4,198 distribution Wansformers were already completed by 30"une 2078, In addition to that, 178,820 out of 249,54 earmarked customers were. Connected vith power. Contraciers replacing te former terminated contactor, Spencon ‘Services Lis started implementation in Kilmanjaro and Singioa rogions in Janusry 2078 and ‘Api 2018 respectively. Coniractors JV Emec Engineering Lid & Dynamic Engineeing and ‘System Company Lio, and JV East Affcan Fost Co Lid & CMG construction Co Lid are for Singids region wiile in Ktimanjaro contrsctors are JV Octopus Engineering Lid snd ‘Nara Contractors Lt, 1b) TEDAP- the objective ofthe project is to improve the qualty and efciency ef the grovision of electcty service in the country and to establich a sustainable base for energy access expansion. The projec is financed by IDA Credit of SOR G7 Zila (sixty-seven milion seven hundred thousand Special Drawing Rights), of which SDR 4.60mition has been allocated tothe Company as a grant for implementing some components of the Propet. The, project completed inal the tnorded parts wi enceplion to Maga Greek parion, which Isin the final stages of completion 6}. Electricity V package distribution component acétional scope consists of constustion of ‘30km of 3K, 100km of 0 kV dittbuton tnos, Installation of 5 ditrbutlon Trane'ormars, ommection of 15,000 customers in Mwanza and Shinyanga regions. The dtibution ?etwerks complated by 02% ard 4,477 aut of 16,000 customers were connected wih power by June 2018. The project was fundes by AFDB at a contrac pice of USO 4.48 milion (12S 10,069 mation) for procurement of goods and TANESCO for labor charges. 3) Construction of @ 240hW combined cyce gas-fired power plant to be insted at Kinyerezi Estimated cost ofthe project is USO 244 tmilion. Construction of the projec started NNoverniter 2016 snd the projects expected to be completed on 30” September 2018. All the six (@) Gas Turbine Generators (GTGe) have boon installed and operational generating 2 total of 167 MW while commissioning ofthe wo (2) Steam Turbine Generators (STGs) Is inthe final stages. The overall projoct progress ie 90%. ‘TANZANIA ELECTRIC SUPPLY COMPANY LiMITED REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 30” JUNE 2018 5. PRINCIPAL ACTIVITIES (Continued) Projects implemented or continued to be implemented during the year (Continued) ©) Construction of 1854NW Kinyerez | extension gas fred power plant at Knyerez. Estimated {ost ofthe project is USD 1Bemilion(TZS 426,089 milon) The project started in November 2016 and ls expactod fo be comeleted on 30” August 2018, The construction of Bulyanhulu ~ Geita ~ Nyakanazi 220 KV Transmission Lines. This project comprises of construction of Bulyanhul to Gota power 220KV transmission ine 48 portion 1,2 distance of S5km and electrification of vilages along the power Iranemiesion line corcer. Estimated cost of the projec is USD 23 milion(TZS 62,128) This pation 1s under Implementation stage and is expected to be completed In May 2020. The second Porton includes Geita - Nyakanazl cower trnsmission ine with aclstanes of 144 kn wich Is. ako under mplamentation, Estimated cost of the project te EURO 41.6 mllon(TZS. 109,315) and expected to be completed on 30 November, 2020. The thd potion covers Rusurne -Nyakanazi power tranemision line wih a distance of 188 km which salsa uncer Implementation. Estimated cost of the project is USD 35.38 millon(TZS. 60,141) and expected to be compsted on 30” September, 2020, 19} Construction of 400K North West grid power transmission line project from Mbeya — ‘Tunduma ~ Sumbawanga ~ Mpanda~ Kaoma - Nyakanazi wil be implemented in twee phases: Phase one covering a parton trom Meya - Tunduma to Sumbawanga a distance 51 30km and scheduled fer completion in 36 manne me fram commencement dal, fie Phase two covering 2 porton ftom Nyakanezi~ Kigoma at a ance of 260km seredued for competion in. 42 mone! tine or comancemer cate Sisley, Phase thre {overing 2 portion fom Kigoma- Mpanda fo Sumbavanga a distance of 480km Ig sexedUed for competion in 26 months from commencement cate, ESIA cerificals for Mbaya Tunduma-Sumbawarga portion was obiained anc that of Sumoawanga-Mpanda-Kigoma- Nyaksnazi potion wes obtained . The compensation schedule for new Mbaye suzstation and Kigoma plots are Under Payment processes. The Word Bark financing Phase one ‘whe phase I wil be paral! finances by AIDB and EDCF For remaining parton of phase tives the effort solctng financing for the project implementation ‘rom various Development Partners i in progress Fh) Consitucton of 400KV Singlda ~ Arusha ~ Naircbi Infeconnecter fine. Government hae Concluded Financing Agreements with Lenders forthe projet (Afrlean Developme. Bank {(Ai08) and Japan Intemational Daveiopment Agency (ICA), All Contacts ae ‘mobiized to site undertaking Soll Investigations, Engineering Design and sl have Commenced delivery af constucion materals rom abroad art local, The project Ie ‘expected fe be completed on 30th June 2020. 2) Rehabitation of protectin and eontil system at Singida completed on 218 August 2078 |) Installation of 45MVA, 220/89KV transformer at Kidatu completac on 2 July 2097 ata total coal cf 723 1.8 lion 1) Rehatlitaton ang upgrade of Musoma, Nyakato, Sabasaba 35/1{kY substations. The total Cost of instalation and ranabiltation i128 7-8 billion ‘TANZANIA ELECTRIC SUPPLY COMPANY LIMITED REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 30” JUNE 2018 5. PRINCIPAL ACTIVITIES (Continued) |. Projects implemented or continued to be implemented during the year (Continued) 1m) Capac buleing and Emergency repair of fie hydro pawer plants, namely Kidat, Kans, tera, Pangan! and Nyumba ya Mungu. Tha tof! project cost was 67 5 Nillon Nerwegian Kroner(TZ5 18,701) Financed by Goveenment ot Nonvay but the actual projet cost for repair Works exceeded the grant facity by Euro 1.5 Milon(TZS 3,399 milion) and thus the ‘Company has o pay the ference. The project was completed on 20% Apri 2018, 1) TANESCO Transmission Gio Rehabiltation & Upgrade Project (TTGRUP), whch ncuses rehabilitation of tan (10) gra, connected Substations, extension of opt! fiber {elecommunication network fora distanes of 1.348 klomaters, upgrading of SCADVENS Sysiem and Technical assistance under AFD financing. Procurement of Corsultancy ‘Services has been inated and the project is expected tobe compioted an 30" June 2020 IL Other projects implemented during the yoar ended 30 June 2018 18) Construction of 132KV Mwara ~ Lindl transmission tne and associated substations Construction warks completed, line comissianed and energized on 81° July 2017, )Relofarcamant of power distribution in Dar es Salaam regions including installation of two OMA 182°32KY transformers at lla substation, srnging ofthe second transmission Ine ‘on 132KV from Ubungo to Ista; expansion of Msasan substation through Istallaten of one ‘SMVAISSIITKV transformer and construction of three new substations of 1SMVA 32/1 1kV ®t Jangwoni Beooh, Muh ond Musananyamala. The prject was completed on 90" June 2047. The project wat funded by JIGA ata contac pice of JPY $609.8 milon(TZS 72,440 milion. ©) Installation and Commissioning of 4SMIVA transformer in Tanga was completed on $04 June 2018, The total project costs USD 1.4 millon ZS 3,173 milion) ©) Upgrade of Usungo ~ Kipaws 132K transmission line by singing the second orcult on ‘existing towers project. The projet was completed an 24" November, 2018. ‘TANZANIA ELECTRIC SUPPLY COMPANY LIMITED REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 30" JUNE 2018 5, PRINCIPAL ACTIVITIES (Continued) ‘The operational performanes of the Company during the year ended 30" June 2018 are summarised 28 flows Plan | Actual] Actual 30°] Percantage | Notes 30 June | 30% June | June 2017| change dee otis wont oe — service line appBcations: ° 45,187 45077 | 2% OO ETETE| ee] az) wal ow Po ee completed during the period! year (km) ‘otal length of low volage fines by the end of the} 60.807] 64.469, t08.037| 30% | D perioaear hr) Distribution wanstomore Inetaied. during. the see! 2,100 4955] 52% peviodlyaar ‘otal sumbar astbation transformers by the end| 17.630) 18,795, 16.805) 13% 0) the pariod year Total numberof consumers by the end of| 2.268.890] 2218018 2019899/ 10% | 6 the paiodiyese ‘Tolalnumber ofa Baa] 6.784 E65 | ‘Consumerist ratio 258 ‘a7 ait] 8% Notes: Explanation on major varances below or above +/-10% ofthe planned achievement curing the year. ‘A. The main reason for the recorded variance was insutficient customer comection materials experienced dung the year. Hawover, the Company is expacting to connect all pending customers timely following decision to decentralzed procurnart of Customer connection materials in Zones wih effect from 1 July 2018 which wil easy molerialavaiablty hence speed up connection acini. . Unfavorable variance in units sold during the yeor was attributed by, among others things including faltre to attain the planned customer connection. Another faztor was Unplanned outages caused by unferascen transmission and diaibution faut, Ongsing fransmission and. distribulion infrastructures repairs and upgrade are expected to minimize power outages in future. 6 TANZANIA ELECTRIC SUPPLY COMPANY LIMITED REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 30" JUNE 2018 5. PRINCIPAL ACTIVITIES (Continued) CC. This cover item © up to F-The main roason for the experianced variance in tis block was insufficient distribution maleils which hindered. implementation of planned ‘clviies. Decentralization of procurement of datibuton materials wil ci this Challenge and imprave pace of implementing cstibution works, D. The variance was a result of non-completon of customer connection projets on tne due to lack of ‘suffcient materials. However, decertvaizaton of pracuremant of elstbution materials have improved availaiy of customer connection materials us a pening customars wil be connected timely going forwar ‘The Company has been experiencing a number of operational challenges in serving is customers. These challenges ‘ogether wit stiatagles Used to adéress them are aulined below (@)Bolabity and qusity of power ‘The tehabiitation and maintenance of generation, transmission and distbutlon networks continued to be caried out during the period in order to Improve quality and relnbilty of power During the year ended 30" June 2018 TZS. 25.509 millon wae Used in the Fehabiltation and maintenance of assets, (At 90" June 2077 twas TZS 41,125 miler), (@)Bowertoss though meter tamoerina and stopped meters, ‘Tee progress on the project to Install he Automatic Meter Reader (AMR) meters fr Large Power Users (IPUs) (Tali 2 and Tarif 8) vill ae Baim Power Users (Tari | customers using thre - phase maters), as at 30° June 2018 was as follows: = 1) Tan 2: The cumulative number of customers installed with AMR meters as at SO” June 2018 is 694 (AL 30" June 2047 it was 647 meters) 1p Tati 2: The cumulative number of customers installed with AMIR meters as at SO" June 2018 is 2,765 (AL 30" June 2017 Ras 2,749 meters) [Tad 1: The cumutatve number of customers installed with AMIR meters as at sO” June 2018 is 27,850 (At 30 June 2017 iwas 25,082 metas) During the year under review, the AMR meters realized th falling benefits 1, Decrease in number of cases of energy thet by large power users in comparson with \when ‘conventional elecramachanicalelecironie meters were i use, For instance, the revenue protection team reported ne incidance of AUR meter tampering for Tart 3 eastomers ane only two (2} customers for Tanff 2 forthe period ended SO" June 2018 2 Increase of average monthly revenue collection dus to increased number of Taf + customers with AVR meters. These can be dsconnacted remetely whereby 3271 Tarif 1 AMiR-meteced customars were remotely disconnected with dabt amounting to TZS 2,036.83 milton whie 2.549 AMR motors wore remetely reconnected after payment, in bich @ total of T25 4,254 millon wae collected from forthe peviod ended 30” June Dare. 5. Accuracy of meter reading has encrmousiy improved 4. Giving clear and actual meter ratings in diferent measurement levels (Primary Substations, feeders, boundaries, secondary substations and generation plant). TANZANIA ELECTRIC SUPPLY COMPANY LIMITED. REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 30” JUNE 2018, ‘5, PRINCIPAL ACTIVITIES (Continued) Management of energy losses Enerpy losses roflect the diforence between the quantiy of energy sent ut from tte power stations and the quantty so to varlous customers at the and ofthe value chain. The losses are categorised as technical or non-technical n nature Total esses were Torget Actual Actual Energy losses 30" June 2018 30” June 2018 30 June 2017 Distribution loss (%) 11.00% 10.19% 19% “Tranamission lose (3 6.00% 529% 8.0% Total oss% 17.00% 16.02% 139% ‘Meter aualt through Revenue Protection Units (RPUs) During the year ended 30% June 2018 the Company's Revenue Protection Units (RPUs) continued to carryout the operational campaigns agaist energy theft, known as ‘Campent Kamata Wai wa Umome (KAWEU) inal regions (Out cf the 189,000 customers inspected during the peri ended 30° June 2018, Toa 2,582 Customers equivalent to 15% ofall customers inspected Nad metering discrepancies. A total of T2S 2,520.83 milion was established as revenue loss. The Company biked the amounts ‘nda total of TZS 898.2 millon Was colected which equivalent to 35.24% Vandalism of intasinetures including thet of detibution ines cables and transformer a “The Company continued to strengthen the natlonal tas force by improving collabeaton with the communis inclusing proving incentives to ckizens who provce laformation on vandalism and power thet. uring the year ended 20” June 2098, the Company continued te pursue the following actvtes inthe font In tho year of 2017-2018, most public awaroness was done through media camysign, by using local media, Newspapers and Television regarding diferent issues lke Bil payment, Eloctoty the and Vandatom of elecre inrasttuotures, However the company as also invoWed in Pubic gatherng. in flere ragions in colaboraton with Regional Commissioner, Regional security ofcers and Loeal authortatve leaders Rogions vised for awareness incues Oar es Salaam, Cosst, Nombe (rakambako district and Nome municipal) and Arusha regions ‘TANZANIA ELECTRIC SUPPLY COMPANY LIMITED REPORT OF THE DIRECTORS (Continued) FOR THE YEAR ENDED 30" JUNE 2018 COMPOSITION OF THE BOARD OF DIRECTORS ‘The dectors of the Campany atthe date ofthis report, and whom have served sine 1 July 2017 ae SIN Namo Position Age Qualification! Nationality Dato Discipline Appcinted! Resigned 1. Dr-Alexander Chairmen 65 PhD. (Electrical Tanzanian Apponted Likyanszi Engineering) oP Nay 2016 Consulting, Engineer 2 Amb.Dr. Member 71-—-~PA.D, (Economic Tanzanian Apponted James Masi Scenes and 4 Aug. 2015 Nzaal Economie Management) 3. Wr-DavidE, ember 45.

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