COMMENT: Consumers must use electricity sparingly

Electricity had become quite cheap even for the most frugal consumer since the January 10 review.

Consumers basically had lights on for free. One tweeted, somewhat embarrassedly on Thursday that he had paid $1  000 for 200kWH of electricity, that could last him and his family for almost a month. That was a month of electricity at an equivalent of US$3,52 using the interbank rate.

“Unpopular Opinion: The current price of electricity will only lead to us all living in the dark if it remains as it is,” he posted.
True, the tariff had become dangerously low that instead of keeping lights on, it was going to get them off. Deeply oxymoronic.

However, on Sunday, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) adjusted the tariff to the 2019 rate of US cents 10,64/kWh saying that will enable it to fulfil its mandate of providing reliable power supply to the nation. The old tariff was US$0, 0233/kWh.

Pre-paid consumers will now pay $401,21 per kWh for the first 50 units, $804,01 for 51-200 and $2 817 each for 201-300 units.

Now, the consumer who bought 200 units for $1 000 or US$3,52 last week and was embarrassed about it will have to shell out substantially more for the same amount of power.

Indeed, consumers must have anticipated an increase in the power charge as the old one had become too low for a service as crucial as electricity.

We recognise that Zesa must sell power at a price that covers the cost of producing, transmitting and distributing it as well as maintaining all its units along the chain. We also recognise that the Government has, lately, been allowing the market to determine prices, thus it was only a matter of time before ZETDC announced a review.

We are sure that the power distributor did their calculations correctly to arrive at the new tariff. That should enable the Zimbabwe Power Company, its sister company, to continue investing in new capacity at Hwange coal-fired plant, smaller thermals in Harare, Munyati and Bulawayo and other new sites. These, as well as Kariba South must be maintained too.

In addition to normal construction and maintenance, the grid can be vandalised or be interfered with by, for example, trees falling on transmission lines and so on. ZETDC needs resources to be able to respond most expeditiously as and when the need arises.

Only an economic tariff will make that possible.

However, we appreciate that some consumers are feeling the pinch over the latest review. Indeed, $20 000 for 50 units isn’t a small sum.

National Consumer Rights Association co-ordinator Mr Effie Ncube, cited elsewhere in this edition, urged the Government to intervene, saying the economy cannot afford any increases at the moment.

“Any increase in the cost of electricity is inflationary in nature,” he complained.

“The cost is going to cascade across every sector of the economy and affect all services and goods and drive up the cost of living. While the increase was not avoidable, the biggest challenge is where the economy is. Can the economy afford this increase and whether the consumers can also afford it?

“At this point, the economy cannot afford increases that will drive up the cost of goods, services and inflation. It is not affordable to the economy and consumers. We need to contain any cost drives so that we stabilise prices.”

We agree the new tariff will impact on the consumer as well as industry and commerce.

However, we are unsure if ZETDC had an alternative.

Speaking to household consumers, we urge them to fight to keep their monthly consumption within the lifeline band, that of $401,21 per kWh for 50 units, which works out to $20 060. They must only switch on the lights when they really have to, iron their laundry when really necessary and switch on that geyser or heater when it is really, really necessary.

It may be the time too for them to move over to energy saver bulbs as the Zimbabwe Energy Regulatory Authority always appeals. The bulbs might be expensive when one buys them but in the long run, they assist in keeping energy bills in check.

Priced correctly, electricity anywhere is not cheap, which is an incentive for consumers not to waste it.