Zimbabwe: Government Mulls Zesa Tariff Hike

Photo: The Herald
Minister of Energy and Power Development Fortune Chasi.

Government is planning an electricity tariff hike despite rolling power outages and a punishing load-shedding schedule that has negatively affected industry as well as domestic users.

Energy Minister Fortune Chasi told a post-Cabinet media briefing in Harare Monday that State power utility ZESA is generating, importing power and selling it to local consumers at a loss.

"In respect to power, it's the same approach that the issue of ZESA tariff is on the agenda and am aware that the Zimbabwe Energy Regulatory Authority (ZERA) is looking in the very granular way around the prices of power. ZERA is also looking at ways of giving the public sufficient information so that people can plan knowing exactly where we are going," said Chasi.

"The long term goal is to make sure that we have a tariff that is (well) constituted. We cannot import power or generate power at and sell it at a loss, we will be creating very significant problems."

Information Minister Monica Mutsvangwa said efficiency at ZESA can only be achieved through a cost reflective tariff.

"The improvement should be reinforced by the institution of a cost reflected tariff... improved operational efficiencies at ZESA and effective demand side management measures. The Ministry of Energy and power Development is already seized with these issues," said Mutsvangwa.

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