Categories: Stories

Zimbabwe mulls increasing electricity tariffs

Zimbabwe is working on increasing electricity tariffs so that they reflect the cost of generating or importing power Energy Minister Fortune Chasi told Parliament on Wednesday.

He said this during Parliament’s question time when he was put under pressure to explain when the country, which is now experiencing load-shedding of up to 18 hours, will resolve the power problem.

Chasi said that one of the problems is that the country’s power utility, the Zimbabwe Electricity Supply Authority, is owed Z$1.2 billion by consumers.

Asked to name and shame the consumers who owe ZESA by publishing their names, Chasi said that would be too expensive as ZESA has about 800 000 clients.

On how ZESA was going to recover its money since most of the consumers are now using pre-paid meters, Chasi disputed this saying he was actually working day-in, day-out to get more people on prepaid meters to manage the consumption of power.

“I also want Hon. Members to understand and I ask them that when they pay for their power, they should look at exactly how much will be going to ZESA as a percentage of what is actually going for the current usage of power,” the minister said.

“We are working on improving or increasing the tariff so that it reflects the cost of generating or importing power.  There must be a serious relationship between generation of power and the rate at which people are charged to consume that power.

“So, it is important that we must talk and do something about meters but I am sorry to say to the Hon. Member that we are not at the point where the majority of consumers are on metres.  That is not an accurate statement.”

ZESA has been battling to get its tariffs reviewed with the latest request in 2016 being turned down. The last review was eight years ago.

Even local industry says the current tariffs are “ridiculous”.

The load-shedding has affected industry as well as the winter crop. Mobile phone operators have also threatened to shut down when there is no power.

Zimbabwe is currently negotiating with South Africa’s Eskom and Mozambique’s Hydro Cabora Bassa to import power.

 

(106 VIEWS)

This post was last modified on %s = human-readable time difference 8:11 am

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.

Recent Posts

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024