Electricity tariff increase looms

By Staff reporter | 01 Jul 2020 at 17:59hrs
The Zimbabwe Energy Regulatory Authority (ZERA) is assessing an application for an electricity tariff increase that was recently lodged by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC).

Speaking on the sidelines of the commissioning ceremony of Chijawi Primary and Secondary schools' electrification project in Hurungwe district, which was officiated by Energy and Power Development Minister Fortune Chasi, ZERA chief executive Mr Eddington Mazambani said they wanted to ensure a balance between affordability on the part of consumers and ZETDC's viability.

"Tariff increases are not granted easily, we will conduct an extensive interrogation and scrutinisation of the proposed tariffs to ensure that they are justified." Mr Mazambani said their assessment might see the tariffs being reviewed upwards or downwards.

ZESA spokesperson Mr Fullard Gwasira confirmed that they applied for an increase in tariffs but declined to give specific details.

This month the power company lowered electricity tariffs by between 11 percent and 25 percent and introduced a new low-cost tariff band that reduces electricity charges for purchases of units in excess of 200 kilowatt hour (kwh) but not exceeding 300kwh per month in response to customer requests for low priced units.

The first 50 units, under the June lowered tariff band, were pegged at 52c per kwh, 51 to 200 units cost $1.14 per kwh while 201 to 300 units have been reduced to $3.12 per kwh from $4.88 per kwh.

The proposed tariff adjustments according to the application, Mr Mazambani said, were aimed at cushioning the power entity as inflation continues to rise. The energy regulator has also put in place a system which will see fuel prices being adjusted weekly.

Mr Mazambani said the price adjustments were also aimed at making sure that the commodity is available on the market.



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