Zimbabwe hikes power tariffs by 50%, another increase set for next month

Zimbabwe’s energy regulator has allowed the state power company to increase tariffs by 50% from today while another hike by the same margin would come into effect next month.

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) had already raised tariffs by 50% on September 23 to bring its rates in line with inflation running above 700%.

The increase would hit residents whose salaries have lagged inflation, while businesses could pass on the cost to consumers.

Zimbabwe Energy Regulatory Authority (ZERA) said in a letter to ZETDC that the government had okayed the “outstanding tariff adjustments.”

ZERA chief executive Edington Mazambani confirmed the increases.

Last year in October, the power company hiked the average electricity tariff by 320% in a bid to ramp up production and improve supplies.

Zimbabwe has managed to keep the lights on since March after businesses were either shut or cut production after a government imposed lockdown to curb the Covid-19 pandemic.- IOL

(95 VIEWS)

This post was last modified on October 1, 2020 8:34 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.