Abuz to review impact of new power tariffs

The new tariffs were reduced with effect from 1 January 2013.

Zesa Holdings through its subsidiary the Zimbabwe Electricity Transmission and Distribution Company had applied for an average tariff increase of 9.94c kiloWatt hour but won a minute 0.3 percent increase in average electricity tariffs to 9.86c Kw/h from 9.83c.

The regulatory authority also reduced tariffs for consumers on the maximum demand category by about 2 percent.

Consumers on the maximum demand side include mining, industrial, commercial and pumping works customers.

In an interview, the Association for Business in Zimbabwe chief executive officer Mr Lucky Mlilo said his association was yet to review the impact of the reduced power tariffs.

“As an association, we will have to sit down and review the impact of the power tariffs to our members.

“Most of our members are returning from an annual shutdown next week (this week) and we hope our litigations committee will have to review the impact of the tariffs soon,” he said.

Before Zera came out with the new power tariff structure, stakeholders that include Abuz and the Confederation of Zimbabwe Industries (CZI) made submissions on the proposed rates.

Efforts to get a comment from CZI president Mr Kumbirai Katsande and his Zimbabwe National Chamber of Commerce counterpart Mr Oswell Binha were unsuccessful.

In coming up with the new power tariffs, Zera chief executive Engineer Gloria Magombo said they considered consumers’ concerns requiring fair tariffs.

She said Zera had also considered the need to improve on the production levels at power stations adding that there was need for Zesa to access more electricity from regional suppliers. Recently, the industrial sector has expressed concern over high tariffs structure by Zesa resulting in some companies failing to pay their electricity bills.

Against this background, some firms were disconnected of power and through their respective associations appealed to the courts as they felt that Zesa was not adhering to the Electricity Act and the tariffs were not competitive.