There is need for new pricing regime in essential services

Analysts say there is need for a new pricing regime in the essential services sector such as water, electricity and rentals for the economy to perform to its full potential, ZBC News reported.

The country's billing system has come under spotlight with experts saying service providers are charging exorbitant rates, thus turning the country into a casino economy.

A town planner, Mr Percy Toriro said there is need to go back to the drawing board and start to peg normal rates and do away with existing inflationary tariffs.

"When we introduced the US dollar, people did not change their profiteering behaviour and inflationary pricing. We must go back to the drawing board and calculate what it costs to provide water then we move forward, Mr Toriro said.

Economic analyst, Mr Rutendo Rutendo said it is high time people start paying for what they would have consumed instead of subsidising some parastatals management's luxuries.

"Zimbabweans are being punished, people should be charged what they would have used. We experience power outages for the most part of the year but we are charged high bills, how does that work?" asked Mr Rutendo.

Property developer, Mr Jonathan Gapare said the current billing system is hindering economic progress as the money being channeled to bill payments should instead be channeled towards boosting production.

"Money that should be used for developmental purposes is all channeled towards the payment of utility bills like electricity. The problem is with the government which should start to lead by example," Mr Gapare said.

There is consensus that the pricing regime of water, electricity and rentals should take into account the macro-economic environment that is prevailing as well as the salaries that people are getting.

Zimbabwe service providers have pegged their tariffs way beyond what the public can pay.

Observers say they are making citizens cover up for their incompetence.