Zimbabwe: Power Tariffs Shoot Up

(File photo).

The Zimbabwe Electricity Supply Authority Holdings (Zesa) has increased tariffs by 19,2% with effect from March 1 at a time the country is experiencing prolonged power cuts.

According to a notice by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), the adjustment is in accordance with the tariff award of October 2 2019, which approved the implementation of monthly tariff indexation formula, that takes into account the movement of the macro-economic fundamentals such as exchange rate and inflation, for changes above 10%.

The ZETDC is a Zesa subsidiary responsible for electricity distribution.This adjustment means that the first 50 units of electricity for the month, which used to cost ZW$20,50 will now cost ZW$24,50.

The 200 units of electricity, which used to be sold for ZW$157, will now cost ZW$186,50.After 200 units have been consumed, all other units will now go for a punitive ZW$4,61 per kilowatt hour (kWh) compared to ZW$3,87 per kWh before.

The adjustment also means the electricity tariff for the first 50 units has increased from ZW$0,41 per kWh to ZW$0,49 per kWh.The next 150 units which used to cost ZW$136,50 will now cost ZW$162. This follows the increase in electricity tariffs from ZW$0,91 per kWh to ZW$1,08 per kWh.

"The rates are exclusive of the 6% Rural Electrification Levy and 15% VAT (value-added tax). In terms of Statutory Instrument 168 of 2012, electricity charges for Domestic customers are zero rated for VAT and in terms of Statutory Instrument 215 of 2005, fixed charges on commercial and domestic electricity are zero rated for VAT," read the notice signed by ZETDC acting managing director Ralph Katsande.

"Maximum demand (MD) customers are urged to peak during off-peak periods. For a customer who attains MD during off-peak, the applicable MD is the one attained during the peak or standard period. Reactive energy charge will be applied when the customer's power factor is less than ZW$0,90. This is with effect from January 1 2020."

Katsande added that tariffs will be reviewed monthly.The fixed monthly charge on conventional meters now stands at ZW$7,24.The monthly kWh unit charges for household consumers are now structured as follows: first 50 kWh (ZW$0,49) and from 51 kWh to 200 kWh it will be ZW$1,08 while the balance will be ZW$4,61.

The standard rate for households with prepaid meters will be ZW$2,15 for the first 50 kWh. They will pay ZW$2,15 from 51 kWh to 200 kWh although the balance will remain at ZW$2,15.

The stepped tariffs will be ZW$0,49 for the first 50 kWh and ZW$1,08 from 51 kWh to 200 kWh while the balance will be ZW$4,61.The Zimbabwe Energy Regulatory Authority (Zera) in October last year approved a 320% electricity tariff increase to 162,16 cents per kWh to help Zesa improve power supply.

This was after Zesa units, which include the ZETDC and Zimbabwe Power Company, applied for the tariff hike in early October.Zera in August of 2019 reviewed the electricity tariff to 38,61c/kWh.

Zera said the hike was part of efforts to restore normal electricity supply after the previous charges were rendered ineffective by inflationary pressures.

More From: Zimbabwe Independent

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