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>

Electricity Tariffs Latest News

Latest Jobs