Business sector condemn Zesa over proposed tariffs hikes

Zimbabwe leading business unions have opposed planned electricity tariffs hike by ZESA saying it was count-productive.

The association which include the Confederation of Zimbabwe Industries, Chamber of Mines and Commercial Farmers Union issues a statement expressing their frustration.

They said if the proposed hike is affected most surviving industries will crumble.

Below is part of the statement:

Business member organizations met to discuss the proposed 49% electricity tariff increase application by ZEDTC. The purpose of the meeting was to establish the impact of such move on each sector especially considering that some, if not most of the sectors to be affected by the increase, directly or indirectly feed into each other.

It was clear that every sectors represented at the meeting cannot afford any tariff increase, and in fact some of  the companies belonging to these sectors re struggling to pay electricity tariffs at current levels as evidenced by the current $1bn owed to ZEDTC by some consumers.

We are seriously perturbed by the decision that was taken to bring into the tariff equation the emergency power from diesel generation. This proposed 200MV emergency power is coming at a huge cost to the economy.

The investment by the economy in this proposed scheme can be better utilised if deployed to give permanent solution to this energy crisis, even if it means that permanent energy will be realised 3-5 years down the line.

All imported power is coming from utilities operating in weak currencies and therefore we believe the cost thereof should be low, not to cause a review of tariffs upwards.

"We strongly oppose the application for tariff increase by ZEDTC.