HomeIndustry SectorsFinance and PolicyZimbabwe orders 31% electricity tariff increase

Zimbabwe orders 31% electricity tariff increase

Hwange power station
“’ the biggest power
plant in Zimbabwe
“’ has undergone a
US$125 renovation
and expansion to
produce 920MW
Harare, Zimbabwe — ESI-AFRICA.COM — 29 August 2011 – Zimbabwe’s national electricity regulator has ordered a 31% tariff increase, in a move that it said was designed to ensure the state-owned power utility ZESA’s profitability, according to the authority.

“The increase will see the average tariff going up to 9.3 cents per kilowatt hour (kWh), from the current 7.5 cents with effect from 1 September, the Zimbabwe Electricity Regulatory Commission (ZERC) said in a statement issued here.

ZESA, the country’s sole power supplier, has often alluded to low tariffs as one of the reasons behind erratic electricity supplies in Zimbabwe.

The southern African country currently generates less than 1,000 megawatts against demand of more than 2,000 megawatts “’ a situation that has held back the recovery of the key mining and manufacturing sectors.

Zimbabwe complements local power generation with imports from the Democratic Republic of Congo (DRC), Mozambique and Zambia.