adminCabinet Minister has said.
Zesa, which is owed close to US$400 million by domestic and industrial consumers last month increased tariffs by 31 percent to boost power generating capacity.
Following the tariff rise, which has seen the Confederation of Zimbabwe Industries threatening to take Zesa to court, consumers will now be paying US10c, up from US8c per unit.
Energy and Power Development Minister Elton Mangoma, recently said though consumers “across the body” were now clearing their arrears, it would take a long time for the debt to be erased.
He said some of the country’s biggest firms owed Zesa huge amounts. “Our figures for the first and second quarter of this year show that collections are now exceeding billing,” said Minister Mangoma.
“This shows that consumers are now paying but I do not see that figure (US$400 million owed Zesa in arrears) going away any time soon. The big fellows like Sable Chemicals are not paying up.”
DISCUSS ZESA AND LOAD SHEDDING HERE
Of the debt owed Zesa, domestic consumers account for 51 percent, industries 35 percent and 14 percent government.
The power utility, which has recorded a loss of over US$100 million during this year’s first half says if the tariff rise is waivered, generating capacity would dwindle.
Zesa maintains that even after the tariff hike, power in Zimbabwe remained comparatively cheaper within the region.
However, CZI says with the economy still in its early phases of recovery, effecting the tariff rise would arrest industrial productivity.
“This (tariff increase) shows a lack of understanding or empathy with the nascent and fragile economic and industrial recovery underway since 2009.
“The inflationary ramifications of this purported increase constitute a disaster in terms of competitiveness of local business and can also herald a spat of price increases throughout the economy,” said CZI president Joseph Kanyekanye. – New Ziana.
Online Reporter