News / National
Electricity tariffs to increase
10 Jan 2016 at 06:11hrs | Views
THE Government could soon approve the increase of electricity tariffs by at least 22 percent in an effort to finance new power generation projects and ensure a steady power supply. Although consultations are still underway, the Zimbabwe Energy Regulatory Authority is expected to approve a tariff increase requested by the Zesa. This will see electricity charges rise from the current average of USc9 per kilowatt hour to USc12/kWh.
Energy and Power Development Minister Dr Samuel Undenge told our Harare Bureau that the increase was imminent although consultations with consumers were still ongoing.
Dr Undenge said to fill the gap created by the drastic fall of water levels in Kariba, there was need for the tariff increase to finance projects that are already underway. Dr Undenge said energy economics dictated there be a sustainable tariff increase.
"As Government we are conscious of the need to have a moderate increase so as to caution consumers. Zera is going to bring the recommendations, but as Cabinet we are only going to approve what is reasonable," he said.
"Our current tariffs have not been cost reflective. I am sure we will all agree that our consumers have not been paying and if US$1 billion which is owed Zesa was paid then there would be no need for us to get a loan from China to expand the Hwange unit seven and eight."
Dr Undenge said the last tariff increase came five years ago.
"Most of our neighbours have been increasing power tariffs by 10 percent yearly so this increase is important so that we can be able to finance new projects and the retooling exercise at our thermal stations," he said.
Retooling of Bulawayo Thermal Station is expected to start in the first half of 2016 and upon completion, at least 70MW will be added to the national grid. Refurbishment of Harare and Munyati thermal power stations is also expected to start in that period, adding a combined 150MW to the grid. A tender was also awarded to Helcraw Electrical for the Mutare Peaking Plant, which is expected to add 120MW in the short term.
The emergency Seke Diesel Plant, the minister said, would add about 200MW in the next eight to 12 weeks.
"The Seke project and the Mutare are emergency projects and by early March, we will be having power from there," he said.
Energy and Power Development Minister Dr Samuel Undenge told our Harare Bureau that the increase was imminent although consultations with consumers were still ongoing.
Dr Undenge said to fill the gap created by the drastic fall of water levels in Kariba, there was need for the tariff increase to finance projects that are already underway. Dr Undenge said energy economics dictated there be a sustainable tariff increase.
"As Government we are conscious of the need to have a moderate increase so as to caution consumers. Zera is going to bring the recommendations, but as Cabinet we are only going to approve what is reasonable," he said.
"Our current tariffs have not been cost reflective. I am sure we will all agree that our consumers have not been paying and if US$1 billion which is owed Zesa was paid then there would be no need for us to get a loan from China to expand the Hwange unit seven and eight."
Dr Undenge said the last tariff increase came five years ago.
"Most of our neighbours have been increasing power tariffs by 10 percent yearly so this increase is important so that we can be able to finance new projects and the retooling exercise at our thermal stations," he said.
Retooling of Bulawayo Thermal Station is expected to start in the first half of 2016 and upon completion, at least 70MW will be added to the national grid. Refurbishment of Harare and Munyati thermal power stations is also expected to start in that period, adding a combined 150MW to the grid. A tender was also awarded to Helcraw Electrical for the Mutare Peaking Plant, which is expected to add 120MW in the short term.
The emergency Seke Diesel Plant, the minister said, would add about 200MW in the next eight to 12 weeks.
"The Seke project and the Mutare are emergency projects and by early March, we will be having power from there," he said.
Source - sundaynews
