Zesa tariff hike shelved

business consumers roundly criticised the inc-rease.
The Zimbabwe Electricity Regulatory Commission approved a 30 percent increase in domestic electricity tariffs with effect from February 1 this year.
In an interview yesterday, Energy and Power Development Minister Elton Mangoma said the Government had suspended the increase to allow further consultations.
“As Minister of Energy, I have suspended the increment until we take up the matter for extensive consultations and considerations,” he said.
He said he briefed Cabinet on Tues-day on the matter following a public outcry and widespread condemnation of the tariffs.
People had pointed out that many could not afford the old tariffs and as such the power utility Zesa Holdings could not expect bills to be paid after the increase.
Some people also accused Zesa of milking their clients so that they can pay their staff high salaries and allowa-nces.
Zesa has been challenged to reveal how much of its revenue goes to staff costs.
The power utility justified itself sa-ying the tariff increase was necessary for power development, adding that the new tariffs of 9,94 US cents per kilowatt hour were still below the regional ave-rage of 12 USc.
However, local salaries are on average lower than those in such countries as South Africa, Botswana and Namibia.
Minister Mangoma said the Government would announce tariffs that would ensure Zesa’s viability while at the same time taking into cognisance people’s earnings.
The new tariffs could be announced within the next month.
“We hope that we would have completed the exercise before the end of March,” Minister Mangoma said.
The minister urged consumers to use electricity sparingly.
ZERC gave Zesa Holdings the greenlight to increase tariffs from 7,53 USc per kilowatt hour to 9,94 USc.
The regulatory commission this week admitted it had not carried out sufficient prior consultations because the power utility had submitted its application for an upward review late.
The Confederation of Zimbabwe Industries, Consumer Council of Zimbabwe and the Chamber of Mines threatened to take legal action against Zesa if the increase was not rever- sed.
They termed the hike “unreasonable” and “unjustified”.
CZI president Mr Joseph Kanye-kanye said according to their own calculations, the hike was closer to 50 percent rather than 30.
Stakeholders said they had not been consulted when the new tariffs were passed, as required by the Electricity Act.
Zesa has over the years struggled to provide consistent power supplies and is owed a staggering US$400 million by consumers.
The power utility is in the process of installing a new prepaid billing system, which is expected to improve revenue collection and help clients manage their own electricity use.
Last year, the Competition and Tariffs Commission accused Zesa of abu-sing its monopoly in the sector and ordered the utility to review tariffs downwards and carry out meter readings for billing purposes.
However, Zesa is not yet in full compliance with the statutory body’s directives.