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Zimbabwe: ZERA approves electricity tariff increase

In Southern Africa, the Zimbabwe Energy Regulatory Authority (ZERA) has approved state-owned power utility  Zesa’s average electricity tariff increase of $11,2c/kWh from $9,83c/kWh.

According to the Herald, Zesa had applied for a tariff increase of $14,6c/kWh to help finance imports, which were employed to mitigate power shortages and fund the expansion of generation capacity in the country.

[quote]Zimbabwe has been receiving power imports from neighbouring countries, South Africa and Mozambique since 2015, and according to reports, Zimbabwe’s electricity imports are being operated on a cash basis model, costing the country $47,63 million.

Average tariff increase

An official in the ministry of energy and power development, only known to the Herald, confirmed the development.

“After a careful study of the proposal from Zesa, an average tariff increase of $11,2c/kWh has been granted,” the anonymous source stated.

“Several issues were looked into including economic hardships facing the economy and ability of customers to pay. Remember, Zesa is owed about $1 billion by domestic and commercial customers and granting the proposed tariff would have worsened consumers’ situation.”

The media reported that Zesa could not be found for comment on the matter, however, in recent news, Partison Mbiriri secretary for energy and power development stated that the utility is seeking an additional 40MW of power import from Mozambique’s utility, EDM.

It was reported that the power utility will be persuing to secure a tariff that would be less heavy to its users. Mbiriri said that Zesa will be guided by what it obtains from neighbouring countries and in regards to the terms of the tariff rate it wants to contract with EDM.

Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.


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