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Govt Official Says Electricity Tariffs Too Low And Unsustainable

1 year agoSat, 21 Oct 2023 11:10:25 GMT
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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

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11 Comments

xxx · 1 year ago
Tats not the issue even if the tariffs increase money wil be abused
Anonymous · 1 year ago
Menopause affects thinking....
Anonymous · 1 year ago
This is utter madness... increasing tariffs for a service that cannot be delivered competently
Jameson Jim Phiri · 1 year ago
Yes what she is in line with a postion at work in the Ministry. But have you thought about the Incomes of those people who are supposed to pay/buy that Electricity?? ln Zimbabwe now PDL of salaries or incomes is very very low compared to just a standard of living versus costs of food stuff, school fees, transport, ZESA energy, water, health etc its do high so if you keep increasing your Electricity to suit your Company needs. The results will.be killing people alive kkkk. Lets bear with our economy until it reached stable standard may be, before increasing everything in people lives. l thank you
dadza · 1 year ago
pakapiwa nyika maSanctions hazvirevi kuti munhu wese aka beneffiter minda,vamwe vakawana majority haina kuwana.saka muchazowaitira chii pane kufira yaasahwira ?
🌚🌚🌚🌚🇱🇷🇺🇦 · 1 year ago
How do you expect people to pay sustainable fees for electricity when the cluess government refuse to pay workers a living wage?
blaze · 1 year ago
Gvt should come up with policies that encourage and incentivise people to solarize to reduce over reliance on Zesa
blaze · 1 year ago
chajai Mari inotenga kut zviende mberi. Zesa power to the people
. · 1 year ago
mvuya yakakwana here iyi
mbuya · 1 year ago
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