Tourism sector fumes over Zesa tariffs hike

zesa2Senior Victoria Falls Reporter
PLAYERS in the tourism industry say the proposal by Zimbabwe Electricity Transmission and Distribution Company to increase power tariffs will cripple the sector already grappling with existing high charges from service providers. In separate interviews on the wake of proposals by the power utility to increase power tariffs from 9,86 cents per kilowatt hour to about 14 cents, operators said increase would make the destination uncompetitive.

“We are failing to settle the existing Zesa bills and what will become if the increase is effected? Already we have set out prices for accommodation, tours and adventure activities for the next two years and increasing power tariffs is tantamount to making the destination expensive for tourists,” said Clement Mukwasi of Shearwater Adventures.

Steve Jonasi of Lion Encounter said while they appreciated that the resort town of Victoria Falls   was not heavily affected by power cuts as in some areas, there was a need for Zesa to look at alternative fund-raising activities instead of the proposed increase.

“The increase will have a negative effect on the general population of the resort town. There will be a domino effect – increase in tariffs will cause an increase in production – hence the food basket and people will not be able to pay the bills which would cause an increase in wood poaching as people will still need energy for cooking, there will also be an increase in poaching of wild animals and that will affect the wild animal population,” he said.

The power utility has argued that the company has been charging less than the region’s rate of 12,6 cents per unit, thus making losses since 2009.

The national power utility says it is owed $818 million by consumers — including government, domestic and commercial users.
It said the unpaid bills were hampering its operations and viability.

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