News / National
Soda roasted over Zesa power tariff hike
06 Nov 2020 at 06:36hrs | Views
OPPOSITION MPs on Wednesday grilled Energy minister Zhemu Soda over the 50% hike in electricity tariffs, saying it would further impoverish Zimbabweans.
They said the recent electricity tariff hike announced by Zesa would hinder business growth in the country.
The Zimbabwe Electricity Transmission Distribution Company (ZETDC), a Zesa subsidiary, increased tariffs three times this year.
Prepaid consumers will now pay $1,67 per kWh for the first 50 units, $3,65 for 51-200 and $9,92 each for 201300 units.
Mutasa South MP Regai Tsunga (MDC Alliance) said the hike would affect mining, agriculture, manufacturing and the economy in general.
Soda responded: "The level of inflation by September had reached 337%. That was the level by which the tariff had become eroded. The increases that are being effected currently are a way to restore the tariff levels by which Zesa can continue to operate as a going concern and also that the tariff becomes cost reflective.
"You will notice that the first 50kWh that are sold to domestic consumers are sold at US$0,2 cents. The next step which is between 51 and 200 is going for US$0,4 cents up to about 300, the other bracket is sold for US$0,12 cents," he said.
Soda said electricity tariffs had become unstainable and Zesa was failing to execute its mandate before the three successive increases were effected.
They said the recent electricity tariff hike announced by Zesa would hinder business growth in the country.
The Zimbabwe Electricity Transmission Distribution Company (ZETDC), a Zesa subsidiary, increased tariffs three times this year.
Prepaid consumers will now pay $1,67 per kWh for the first 50 units, $3,65 for 51-200 and $9,92 each for 201300 units.
Mutasa South MP Regai Tsunga (MDC Alliance) said the hike would affect mining, agriculture, manufacturing and the economy in general.
Soda responded: "The level of inflation by September had reached 337%. That was the level by which the tariff had become eroded. The increases that are being effected currently are a way to restore the tariff levels by which Zesa can continue to operate as a going concern and also that the tariff becomes cost reflective.
"You will notice that the first 50kWh that are sold to domestic consumers are sold at US$0,2 cents. The next step which is between 51 and 200 is going for US$0,4 cents up to about 300, the other bracket is sold for US$0,12 cents," he said.
Soda said electricity tariffs had become unstainable and Zesa was failing to execute its mandate before the three successive increases were effected.
Source - newsday
