ZERA okays US2 cents electricity tariff hike

The Zimbabwe Energy Regulatory Authority (ZERA) has approved an increase in electricity tariffs of US2 cents, which takes immediate effect.

ZERA board chairperson, Dr David Madzikanda, made the announcement during a press conference in the capital on Tuesday.
Madzikanda said the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) had, through section 53 of the Electricity Act, applied to ZERA for approval of tariffs chargeable to the various customers who are supplied electricity by the utility.

“The application from the utility was for an adjustment of USc2/kWh and thereafter, stagger the tariff to a level of cost reflectivity.

“Following submission of the application to ZERA, the utility proceeded to advertise the application in national newspapers as provided for by the Electricity Act.

“The Authority then invited stakeholders to consultative meetings to provide them with an opportunity to interrogate the application and provide for their responses and also indicate the extent the review of tariffs would affect their operations,” said Madzikanda.

He said ZETDC has been charging an average of USc10.63/kWh, which was approved in October 2019 and the tariff has been subject to erosion due to the changes in the exchange rate movements and inflation.

As a mechanism to maintain value of the tariff, Madzikana said the utility has had to adjust on a continuos process through indexation.

He said even with the adjustments, ZETDC is still not able to meet it’s operational costs and was still incapacitated to meet demand and growth.

“We however expect a significantly improved and uninterruptible electricity supply position from the utility, as it will be in a position to import electricity from the region and at the same time upgrade its own power stations and grid.

“We also expect improved collection of revenue from owing consumers, improved measures to reduce technical and non technical system losses as well as increased implementation of prepaid meters,” he said.

Madzikana urged consumers not to only pay their bills on time but also assist in looking after the electricity infrastructure while also taking part in energy conservation measures.

He revealed that in approving the recent tariffs hike, ZERA ensured that unnecessary and irrelevant costs were not passed on consumers and that it is aligned to the cost of service study conducted by the World Bank.

Ellectricity supply has greatly improved in Zimbabwe following the commisioning of Hwange Units 7 and 8 this year and the government is now planning to refurbish Units 1 to 6. – NewZiana