Influence of human resource and Electricity Tariff on Operation and maintenance in reducing power outages

Developing countries need adequate access to reliable and modern energy to address the growing development challenge. Around 1.5 billion people have no access to electricity while nearly one billion people are subjected to unreliable electricity as well as frequent power blackouts. According to estimates by studies, energy-underperforming countries lose a growth potential of 1%-2% of growing potentials annually due to power outages. (Rosnes and Shkaratan, 2011) Tanzania Electric Supply Company Limited (TANESCO) dominates electricity sector in Tanzania, which is a monopoly public organization responsible for the generation, transmission and distribution of electricity in the country. For a number of years TANESCO distribution network has been deteriorating day after day. The deterioration is worsened by ineffective O&M on distribution system as a result of low electricity tariffs and a range of human resources factors leading to increased number of power outages in the country. This research therefore aims at explaining the influence of human resource and electricity tariff on TANESCO's operation and maintenance activities, and how, it is affecting power outages in Dar es Salaam. This study is essential, because it forms a bases for informing key decision-makers about the importance of asset management in improving power reliability. The study has applied modern management theories and strategic management approaches as building blocks of the research. Similarly, the conceptual framework for the study is based on the main research question which intent to know "To what extent does human resource and electricity tariffs influence TANESCO's operation and maintenance activities in reducing power outages" This research used the single case study methodology, with both semi-structured interviews and questionnaires as data collection methods. Interview respondents were drawn from both within and outside TANESCO. The survey was administered to the regional management and heads of department in ILALA region. In addition, secondary data was used to verify the findings to increase study validity. Use of both interviews, questionnaires and secondary data served as a means of data triangulation to increased study validity and reliability. Qualitative data analysis for this study was done using Atlas TI and is presented in tabular forms. Similarly, quantitative data was analysed using the SPSS computer program, in which both descriptive and inferential statistics were carried out to arrive at consistent results. Findings of this research reveal that both human resource and electricity tariff moderately affect utility operation and maintenance activities and consequently, operation and maintenance strongly influences power outages with a negative correlation. These findings explain that improvement in operation and maintenance lead to the reduction in power outages. Human resource factors that were identified to affect the utility operation and maintenance include; inadequate number of operation and maintenance employees, inadequate and outdated working tools. On the other hand, low tariffs charged on electricity, delays in tariff adjustments and reviews, delays in procurement processes and less budget for operation and maintenance activities are identified to limit effective implementation of operation and maintenance. Similarly, use of corrective maintenance strategy, lack of maintenance plans, and the absence of a computerized maintenance system affect effective implementation of operation and maintenance activities leading to increased power outages. The study also identified other factors apart from tariff and human resources that influence the utility's O&M activities. These factors include; delays in procurement processes, aged distribution network, and poor quality of O&M materials supplied. This research therefore, recommends that the utility should focus on addressing the identified human resource factors to bridge the existing maintenance gap. Moreover policy makers should ensure that the utility attains cost reflective tariffs in order to improve its operational effectiveness. Finally the study recommends further research on other factors that influence operation and maintenance activities and how these factors if addressed can help reduce power outages especially in developing countries where power outages still a persisting problem.