Zera bars Zesa from increasing tariffs

The Zimbabwe Energy Regulatory Authority (ZERA) has turned down an application by the Zimbabwe Energy Distribution Company (ZETDC) to increase electricity tariffs.

The power utility had applied for a 5 percent upward review of the electricity tariff from 9.86c/kWh to 10.36c/kWh.

ZERA board Chairperson Dr Esther Khosa in a statement today said there would be no tariff increase this year.

"In coming up  with  the  determination, the  ZERA Board is of the  view that the current tariff  is  adequate to  meet  ZETDC's  operations. The ZERA Board also expects ZETDC to improve its debt collection and operational efficiencies as well as reduce technical losses.

"After  duly  considering the  tariff  application; the  macro economic conditions prevailing in the  country; written and  oral  submissions from  various consumer groups and  stakeholders as well as facts and evidence provided by ZETDC, the ZERA Board  made the  following  determination: that the average tariff be  maintained at the previous level effective  1st September 2014," Said Dr Khosa.

She urged electricity consumers to pay their electricity bills timeously and embrace energy efficiency   programmes.

Dr Khosa also   urged the consumers to desist from stealing and vandalising electricity infrastructure as that increases cost of service.

ZETDC, apparently anticipating its application to succeed, has announced that it would inflict heavy financial penalties on consumers who waste electricity by introducing stepped prepayment tariffs which take into account monthly power consumption.

Under the stepped domestic prepayment tariff, consumers would pay up to 15 cents a kilo watt
hour (kWh) if they exceed a certain limit.