Govt Official Says Electricity Tariffs Too Low And Unsustainable

The Permanent Secretary in the Ministry of Energy and Power Development, Gloria Magombo, has said the power utility, ZESA, should have cost-reflective tariffs for the nation to maintain a steady supply of electricity.

Speaking at a recent Economic Policy Dialogue breakfast Indaba held by the Zimbabwe National Chamber of Commerce (ZNCC), Magombo said for many years, electricity tariffs have been too low due to exchange losses. Business Times quoted Magombo as saying:

As a government, we want to ensure that we address sustainability issues. For many years, electricity has been over-subsidised as the power utility charged around US$0.02 per kilowatt hour due to exchange losses.

We need ZESA to have a cost-reflective tariff to attract private-sector investment.

When you are an independent producer, you will apply for the review of the tariff.

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Earlier this month, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) applied for an increase of electricity tariffs for 2023 by US2 cents/kWh.

ZETDC, a subsidiary of State-owned power utility ZESA Holdings, said that the tariff increase will fund projects that include rehabilitation and maintenance of the transmission and distribution network, and service loans, and refurbishment of old units at Hwange Thermal Power Station. 

More: Pindula News