Zesa's 14% tariff hike gets nod

The cost of electricity is set increase after the Zimbabwe Energy Regulatory Authority approved an average tariff of 11,2c/kWh from 9,83c.

Power utility, Zesa Holdings had applied for a tariff increase of 14,6c/kWh to help finance imports to mitigate power shortages and expanding generation capacity.

In order to ease load-shedding, imports of electrical energy were at $47,63 million as suppliers from Mozambique and South Africa were operating on a cash basis model.

However, the situation is unsustainable going forward as the import tariffs are higher than what is currently obtaining especially when the power utility is saddled with a +$1 billion debt.

A source said after a careful study of the proposal from Zesa, an average tariff increase of 11,2c/kWh has been granted," said an official in the Ministry and Energy and Power Development.

Zimbabwe is importing power mainly from Mozambique, where it is seeking more, and South Africa and this has seen a drastic reduction in power rationing.