Although per capita consumption of commercial fuels in Tanzania remains low, the energy sector faces a number of difficult challenges. As in most other countries, energy policy formulation takes place in the context of great uncertainty, being the result of pressures exerted by conflicting interests, particularly with respect to fuel pricing. The Tanzania National Energy Policy was recently adopted after a process of studies and public hearings which spanned more than a decade. One of its principal goals is to reduce dependence upon imported petroleum fuels. The reliability of the electricity system and the financial status of the electric utility are also important issues. Despite the fact that many previous authors have emphasized woodfuel problems, at present the problem is limited to localized shortages. One of the most important obstacles facing the energy sector is the shortage of skilled personnel necessary to operate the sector.