Rural electrification tariff to increase

THE Rural Electrification Tariff is set to go up after the Minister of Energy and Power Development called upon the new Rural Electrification Agency board to review the current tariff.While announcing Zesa boards appointments yesterday, Energy and Power Development Minister Dzikamai Mavhaire highlighted his concerns over the ‘‘low’’ rural electrification tariff to the new Rural Electrification Agency board.

“The 6 percent levy for rural electrification is not enough, we hope the new board that is taking over is aware of our concerns,” said the minister. The new REA board constitutes chairman Willard Chiwewe and board members Christinah Moyo, Fungai Samuel Mbetsa, Christopher Shumba, Josphat Jaji, Felix Chikwowo, Midard Khumalo and Cecelia Chitiyo. The chief executive officer is Joshua Mashamba.

It is, however, expected that the new board will face a public backlash in increasing the rural electricity tariff due to the inefficiency and duplicity of the previous board after it had become involved in loaning activities.

Observers are generally against a tariff hike. “It cannot be the new board’s first task to raise the rural tariff before it even justifies that the current monies being paid by the public are being utilised the right way,” said one observer. Earlier in February this year, Minister Mavhaire dissolved the REA board and management after they were embroiled in a $4 million scandal whereby they extended to themselves and connected private citizens loans amounting to close to $4 million.

Minister Mavhaire yesterday called upon the new REA board to re-align to its original mandate. “REA must focus on its mandate . . . it must drop some of its failed integrated or comprehensive development thrusts as it is not a development agency but a Rural Electrification Agency,” he said.

Meanwhile, the Energy Minister has said the solar energy initiative, which is being championed by the Zimbabwe Power Company and REA, is one of the reasons for an upward increase in the overall electricity tariff rate.

“While we have very high solar radiation rates, solar power remains very expensive. The same people that are demanding solar power are the same that will denounce us when electricity tariffs are adjusted on account of using any significant portion of solar power,”he said. — BH24