Tariff review awaits study findings

Authority last October engaged the services of a consultant to undertake a Cost of Supply Study.
There is ongoing debate on what it costs to produce electricity in Zimbabwe and the competitiveness of electricity tariffs that power utility Zesa Holdings subsidiary, the Zimbabwe Electricity and Distribution Company, charges. Energy and Power Development permanent secretary Mr Partson Mbiriri said results of the study would inform decisions on the current tariffs being charged.

“Zera is currently undertaking a study on cost of supply. That study is expected to give us facts and figures by end of March and then we can discuss tariffs thereafter in a scientific and technical sense and argue about the merits of this tariff or that tariff,” he said.

The study will allow authorities to ascertain the actual cost of generation, transmission, distribution and supply of electricity from any source in the country to the different consumer categories.

Zimbabwe is currently producing hydroelectricity at Kariba Power Station and thermal power at Hwange.
It is estimated that it costs on average around US$0,10 to produce a kWh using hydro, while it costs between US$0,15-US$0,17 to produce a kWh using solar energy.

Power production using coal varies depending on the location of the power station with estimates that it cost around US$0,41 per kWh at the small thermal Harare Power Station.

Mr Mbiriri, however, said it was critical that tariffs that are charged be viable for the power utility to recover costs.

“In my view, consumers should at the very least be able to pay what it costs to bring electricity to their doorstep,” he said, admitting that there were some sections of society that needed to have subsidised tariffs.

He added that there had been limited investment in the power sector since independence due to negative perception about the country as well as assertions that the tariffs charged were too low. Manufacturers have complained that the tariffs were too high, making the cost of producing goods expensive. — New Ziana.