ZETDC reviews tariffs in order to fulfill mandates

Senior Business Reporter
THE Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has adjusted tariffs to the 2019 rate of US cents 10,64/kWh saying this will enable it to fulfil its mandate.

The tariff review was with effect from Sunday.

The power utility has over the years been lobbying for higher tariffs arguing that its charges were sub-economic.

At one time Zesa officials told Parliament that the parastatal was technically insolvent.

Officials argued that movements in the exchange rate and inflation threatened the power utility’s viability if it did not raise tariffs, with the long-term impact being failure to maintain the grid.

“The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) wishes to advise its valued clients that Zimbabwe Energy Regulation Authority (Zesa) has approved a tariff adjustment in order to restore the value to the level of USc10,64 kWh which was approved in 2019,” it said in a statement.

“This adjustment will go a long way in enabling the utility to carry out its mandate of delivering services to the public.”
Pre-paid consumers will now pay $401,21 per kWh for the first 50 units, $804,01 for 51-200 and $2 817 each for 201-300 units.

The country’s other power sources, three thermals in Harare, Munyati and Bulawayo, are prone to breakdowns as they have outlived their useful life and await major upgrades.

As of yesterday afternoon, Kariba was churning out 987MW and Hwange (309MW), Munyati (27MW) and Harare (11MW).

The country requires 1 800MW to 2 200MW at peak periods, but can produce an average of 1 400MW at best.

In an interview, National Consumer Rights Association (Nacora) co-ordinator Mr Effie Ncube urged the Government to intervene, saying the economy cannot afford any increases at the moment.

“Any increase in the cost of electricity is inflationary in nature. The cost is going to cascade across every sector of the economy and affect all services and goods and drive up the cost of living. While the increase was not avoidable, the biggest challenge is where the economy is. Can the economy afford this increase and whether the consumers can also afford it?

“At this point, the economy cannot afford increases that will drive up the cost of goods, services and inflation. It is not affordable to the economy and consumers. We need to contain any cost drives so that we stabilise prices.”