ZESA Holdings has defended the approval of a 50% increase in the electricity tariff to US$0.1221/kWh from US$0.08/kWh saying it was meant to ensure an uninterrupted supply to miners and industry.
Mining companies say the hike threatens the attainment of the US$12 billion mining industry.
However, Howard Choga, the managing director of the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of ZESA, said for the past twenty years, the power utility had been operating below cost. Choga said:
<blockquote>
Electricity supply challenges are sitting on top of the challenges that the miners are facing.
The mining industry believes that electricity charges are very expensive; they want them to be lowered from the current US$0.1221/kWh to US$0.1026/kWh.
But the challenge is for us to find what is needed to correct the anomaly.
What I can tell you is that we are behind in terms of refurbishment and rehabilitation of the network to the tune of about US$2bn.
This is actually occasioned by the fact that for the past 20 years we have been operating below cost.
… let’s accept the tariff for us to have a better future in Zimbabwe and achieve our targets.
</blockquote>
According to Business Times, this year’s demand was 1850MW against the supply of 1400MW, with imports from Zambia, South Africa, and Mozambique augmenting local supplies. | <a href="https://businesstimes.co.zw/govt-justifies-exorbitant-power-tariff/">Business Times</a>

Pindula News

ZESA Defends Electricity Tariff Hike

The Zimbabwe Electricity Supply Authority (ZESA) is pushing for a 100% tariff increase for it to be able to supply adequate power and ensure sustainability.
ZESA is charging an average of US$0.063 per kilowatt-hour but wants the tariff to be hiked to US$0.1236 per kilowatt-hour.
Zimbabwe Electricity Transmission and Distribution Company (ZETDC) commercial director, Ralph Katsande said that a tariff review will go a long way in ensuring that the power utility generates sufficient revenue to fund operations and maintenance of its infrastructure. Said Katsande:
<blockquote>
The current tariff level averaging of 6.3 US cents per unit is subeconomic. ZESA requires a cost-reflective tariff equivalent of 12.36 US cents per unit to efficiently provide service.
</blockquote>
Katsande made the remarks during a stakeholder engagement meeting in Tengwe, Mashonaland West Province.
He said the tariff had fallen to a paltry US$0.032 per unit in August 2020 before it was adjusted in September that year.
Due to low tariffs, ZESA has a huge backlog of distribution network maintenance as it lacks the funds for the rehabilitation of infrastructure. Said Katsande:
<blockquote>
For example, the Northern region alone requires to change 16 000 rotten poles on its 23 655 kilometres distribution network at a cost of US$ 2.1m or ZWL$181m.
</blockquote>
Katsande further revealed that the ZESA distribution network is currently experiencing over 106 000 faults per year and about US$16 million is required to replace over 2 000 vandalised and faulty transformers.
Meanwhile, Chinhoyi Residents Association Chairperson Tapiwanashe Chikondowa suggested that ZESA technicians are involved in the theft of ZESA cables and transformers. He said:
<blockquote>
How can thieves know that they will be no ZESA in a particular area? Look at the rate they have gone in Chinhoyi, ZESA should investigate this internally. This is an inside job.
</blockquote>
<h4>More: <a href="https://businesstimes.co.zw/zesa-seeks-100-tariff-increase/">Business Times</a></h4>

ZESA Seeks 100% Tariff Increase

Zimbabwe Electricity Supply Authority (ZESA) is pushing for a tariff hike of 30 per cent for maintenance of the national grid as well as to cushion itself after the price of diesel shot up. ZESA has since applied to the Zimbabwe Energy Regulatory Authority (ZERA) for the price adjustment.
In 2016, ZESA applied for 46 per cent tariff increase that was turned down by the government at a time when the economy was in the doldrums.
Speaking to State media recently, ZESA’s acting Chief Executive Patrick Chivaura said:
<blockquote>Generally, what suffers is maintenance which you experience as blackouts in your localities, lines collapsing because we can’t maintain them, we can’t maintain the switch gears, we can’t maintain transformers, and so on.</blockquote>
ZESA says of April 1, 2019, the country was producing 1,604 megawatts of electricity from its coal-fired and hydropower plants against peak demand of 2,000 megawatts.
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<h4><a href="https://news.pindula.co.zw/2019/03/24/zesa-to-be-resourceful-as-kariba-dam-water-levels-dwindle/">ZESA To Be Resourceful As Kariba Dam Water Levels Dwindle</a></h4>
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<h4><a href="https://news.pindula.co.zw/2019/03/24/zesa-exporting-power-to-namibia/">ZESA Exporting Power To Namibia</a></h4>
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<h4><a href="https://news.pindula.co.zw/2019/03/14/zesa-dismisses-reports-of-150-electricity-tariff-hike/">ZESA Dismisses Reports Of 150% Electricity Tariff Hike</a></h4>
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<h4>More: <a href="https://www.zimlive.com/2019/04/01/zesa-seeks-30-percent-tariff-increase-warns-it-may-be-forced-to-cut-power/">ZimLive.com</a></h4>

ZESA Pushes For 30% Tariff Hike

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has denied social media claims that it is set to increase electricity tariffs by 150per cent starting this Friday.
A notice published by the power utility on Thursday (today) reads as follows:
<blockquote>SOCIAL MEDIA REPORTS ON TARIFF INCREASE FALSE
The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) would like to advise its valued customers that it is not increasing electricity tariffs by 150% starting Friday, 15th March 2019 as is being reported on social media.
ZETDC would like to express its concern over the malicious social media messages that are urging customers to buy electricity in bulk in order to beat a purported 150% increase in the price of power.
The power utility urges consumers to disregard the misleading social media messages that are creating unnecessary panic buying and inconvenience to consumers.
Tariff increase is a process that is not haphazardly implemented but is done through a thorough consultative process in consultation with consumers, the regulator and shareholder, among other key stakeholders.
The inconvenience is sincerely regretted.</blockquote>
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<h4><a href="https://news.pindula.co.zw/2019/03/14/zesa-intends-to-raise-electricity-tariffs-by-30-per-cent/">ZESA Intends To Raise Electricity Tariffs By 30 Per Cent</a></h4>
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ZESA Dismisses Reports Of 150% Electricity Tariff Hike

The Zimbabwe Electricity Supply Authority (Zesa) wants electricity to increase from the current 9,83c per kilowatt-hour (kWh) to 14,6c per kWh even after the Zimbabwe Energy Regulatory Authority (Zera) declined the power utility’s application last year.
Zesa’s board chair Dr Herbert Murerwa, told The Sunday Mail Business that the current tariff is unsustainable and that industry’s request to have it slashed to 8c per kWh is not reasonable. Said Murerwa:
<blockquote>Zesa needs a cost-reflective tariff (not the current one) so that it can cover its costs of operations and sustainability. And also, Zesa has a dire need to undertake maintenance and repairs to its equipment and to invest in general. We can’t reduce electricity to such levels (8c/kWh) as Zesa has no capacity to subsidise consumers be it heavy or light consumers. We have no money for subsidies, so consumers should look for alternatives to fund their electricity consumption.</blockquote>
More: <a href="http://www.sundaymail.co.zw/zesa-pushes-for-tariff-hike/">Sunday Mail</a>

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