[7] Due to the high dependence on Hydroelectric dams and poor hydrology between 2005 and 2008, Tanesco lead to the procurement of their first Emergency Power Project (EPP).

[8] From 2011 to 2013 TANESCO experienced a shortage of power generation due to poor hydrology and again procurement of costly EPPs was then undertaken.

Tanesco's management operations is conducted at their headquarters Umeme Park and is located in Ubungo, Dar es salaam.

[9][10] The company is organised under the following business units: Generation, Transmission, Distribution and Customer Services, Investment, Finance, Information, Communication and Technology, Human Resources and the Legal Counsel.

[13] The key trends for TANESCO's consolidated Group over recent years are shown below (as at year ending 30 June): Grid & Off-Grid Installed Capacity – 2012 by Fuel Type[3] TANESCO's core business are: to generate, transmit, distribute and supply electricity in Tanzanian mainland and sell bulk power to Zanzibar.

With the recent expansion of the Gas Sector in Tanzania the company has major plans to increase exports to neighbouring countries.

In 2009 the Government through Energy and Water Utilities Regulatory Authority (EWURA) approved Small Power Project framework.

[20] Since introduction of SPPs only mini hydro and biomass power projects are in operation; the high cost of setup, fluctuating foreign exchange prices and low tariffs have discouraged investment.

With thousands of customers defaulting on their electricity payments, Tanesco planned to establish a convenient prepaid metering system for low demand users.

The new program was referred to as "Lipa Umeme Kadiri Utumiavyo"(LUKU) meaning "Pay for electricity as you need it" in English.