Our Staff
2 April 2006
Bulawayo — Accommodation rentals in Bulawayo have this month shot up by more than 233% following an increase in tariff rates by the Zimbabwe Electricity Distribution Company (ZEDC), a subsidiary of the Zimbabwe Electricity Power Authority (ZESA).
ZEDC increased its tariff rates by 450% to be effected quarterly this year in a bid to cover its operational costs running into trillions of dollars.
ZEDC is this month expected to increase electricity charges by 95%. Other increases will be effected in June, September and December.
As a result of the tariff increases, rentals in Bulawayo's high-density areas have shot up by between $2 million and $3 million a room up from about between $600 000 and $800 000.
In the low-density suburbs, estate agents say they have increased their rentals to between $15 and $40 million. Property owners were charging tenants rents ranging from $10 to $30 million a month before this month's increases.
However, the rentals are expected to go up again soon as local authorities have been given the green light by the Minister of Local Government, Public Works and Urban Development, Ignatious Chombo, to charge market rates in a bid to effectively provide essential services.
Bulawayo Residents Association chairman, Winos Dube, said the rent increases were symptoms of an ailing economy.
"This really expresses the difficult economic situation in the country and we sympathise with everyone.
This is a serious national crisis and we can only plead with the higher authorities to solve the crisis as the majority of workers are really suffering," Dube said.
The increase in rentals come at a time when workers are grappling with transport costs which now run into millions of dollars every month following hikes in commuter fares coupled with the ever-rising prices of basic commodities.
The Consumer Council of Zimbabwe (CCZ) says a family now needs close to $28 million a month to cater for its needs.
There are concerns that the ZEDC would still incur huge loses running into trillions of dollars since the tariff increases are regarded as low because the parastatal is saddled with huge debts.
ZEDC is facing viability problems, a situation that has seen the organisation failing to purchase critical equipment and spare parts.
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