Zesa applies for 'unavailable' electricity tariff increase

Power utility Zesa Holdings has applied for permission to increase tariffs for its ring-fenced consumers, an official said on Monday. Last year, the utility entered into an agreement with the country's 22 major miners for an uninterrupted cumulative 108 mega watts of power to minimise production disruptions in exchange for a higher tariff.

Kadoma Paper Mills also benefited from the scheme.

In September last year, Zesa effected a blanket increase in tariffs resulting from 7,53US cents per kilo unit to 9,83US cents per kilo unit.

Zimbabwe Regulatory Authority chairman Mr Canada Malunga told the Parliamentary Portfolio Committee on Mines and Energy that they were still considering the application.

"We have not yet given them the go ahead because we are going through very extensive consultations," he said without disclosing the proposed percentage hike.

Mr Malunga said despite high criticism from consumers, Zesa's tariffs were fair compared to the regional average of 12,6US cents per unit.

Poor electricity supply has largely weighed down industrial production in the country.

The Chamber of Mines is on record saying that power outages wasted up to a quarter of production time.

Although some firms opted for alternative power through the use of diesel generators, the costs are prohibitive.