The Zimbabwe Electricity Supply Authority (ZESA) has once again applied for a tariff increase, Zimbabwe Energy Regulatory Authority’s (ZERA) technical director engineer, Misheck Siyakatshana confirmed.
Speaking to the Herald, Siyakatshana said: “We have an application (for tariff review) at the moment and we are reviewing it.”
It is reported that ZERA takes about 45 days to review a tariff hike application.
The national power utility had its last tariff increase in 2011. At that point, the tariff was increased by 30% from $7,50c per kWh to the current $9,86c per kWh.
However, the application was thrown out mid-2016 by ZERA, which advised the power utility to improve its efficiencies in the generation and distribution process.
According to media, the authority argued that approving the 49% tariff hike request would have been tantamount to sabotaging government efforts in reducing the ease of doing business programme.
Multiple electricity tariff hike applications
Siyakatshana said ZERA reviewed the electricity tariff hike applications about four times since 2011, but rejected them for lack of merit.
“I would also like to mention here that we have reviewed the tariff; I think three or four times in the last few years. So the tariff is actually reviewed, the fact that there has been no increase does not mean that there has been no tariff review. Read more…
“The tariff is actually reviewed and the applicant is informed of our determination. The Act provides us to give a tariff that actually covers the cost of efficient operations.
“So it is only the efficient cost that we put a tariff for. If there are inefficient costs within an operator, we expect the licensee to deal with those costs,” he concluded.
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