admin
THE proposed move by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to increase tariffs by a shocking 16 percent is scandalous and borders on irrationality. Surely Zimbabweans might yesterday have been jolted to wake up to shocking revelations that ZETDC was planning a 16 percent tariff increase — way above the prevailing inflation rate of 4.3 percent.
The power transmission and distribution company is arguing that a marginal increase in the tariff would be detrimental to its operations in the long term. It is saying a 16 percent increase was in line with inflation.
The unconvincing power utility also tried to justify its wayward behaviour of coming up with its sickening increase by saying only one significant increase had been effected since dollarisation of the economy in 2009.
“Average expenditure has been higher than the average tariff awarded. Tariffs awarded (are) not sufficient of the utility,” argued ZETDC.
In its desperate state to justify the obscene increase the company said the tariff hike would fund plant and network maintenance while correcting distortion in the current tariff, with the current cost of running the business at $10,51c/kWh.
While we agree that Zesa Holdings like other utilities in the country are facing some challenges in its operations, the 16 percent increase is not justified and is beyond the reach of many.
We also wonder how the power utility company came up with the 16 percent tariff increase when a majority of workers, those who are lucky, are only getting salary increments of around five percent or never.
Recently civil servants were awarded an average of $45 as a salary increase and this leaves many wondering where this 16 percent monster is coming from.
It is against this background that we urge the powers that be at Zesa Holdings to reconsider their decision and come to their senses and reverse the increase.
We are also suspicious of this tariff increase and many would probably agree with us that it is a ruse to make up for the $160 million relief for domestic customers and $80 million for farmers the power utility was ordered to cancel by the government in the run-up to last year’s harmonised elections.
We also take this opportunity to warn other such minded utilities that they should not take the silence of Zimbabweans for granted by increasing service charges willy-nilly. Zimbabweans are a patient lot and they should be treated with the respect they deserve.
Online Reporter