News / National
ZESA tariff hike bid turned down
20 Jul 2016 at 18:43hrs | Views
Zimbabwe Electricity Supply Authority (ZESA) had its bid to hike power tariffs by 49% turned down.
The Zimbabwe Energy Regulatory Authority (ZERA) has rejected proposal and ordered Zesa to maintain current rates of $9.86c/kWh for the year.
The decision was reached on 14 July, ZERA board chairperson Esther Khosa said.
"After duly considering the tariff application ,the written and oral submissions form various consumer groups and stakeholders as well as facts and evidence provided by ZETDC, the ZERA Board on 14 July 2016 made a determination that the current tariff of 9.86c/kWh be retained for year 2016," she said.
The power supply authority has for months been pushing for a tariff hike.
"There is need to support government in reducing the cost of doing business, the need for utilities to improve efficiency levels as well as implement cost cutting measures and views and concerns from various stakeholders consulted during stakeholder meetings," she added.
Zesa had applied for a $14.69 /kWh to help finance imports to mitigate power shortages and expanding generation capacity.
If granted that would have made Zimbabwe's energy the most expensive and least competitive in Sadc.
Botswana and Mozambique charge 6c/kWh, while Zambia's energy tariff is 7c, Swaziland 8c, South Africa 9c and Tanzania and Lesotho both charge 10c/kWh.
The Zimbabwe Energy Regulatory Authority (ZERA) has rejected proposal and ordered Zesa to maintain current rates of $9.86c/kWh for the year.
The decision was reached on 14 July, ZERA board chairperson Esther Khosa said.
"After duly considering the tariff application ,the written and oral submissions form various consumer groups and stakeholders as well as facts and evidence provided by ZETDC, the ZERA Board on 14 July 2016 made a determination that the current tariff of 9.86c/kWh be retained for year 2016," she said.
The power supply authority has for months been pushing for a tariff hike.
"There is need to support government in reducing the cost of doing business, the need for utilities to improve efficiency levels as well as implement cost cutting measures and views and concerns from various stakeholders consulted during stakeholder meetings," she added.
Zesa had applied for a $14.69 /kWh to help finance imports to mitigate power shortages and expanding generation capacity.
If granted that would have made Zimbabwe's energy the most expensive and least competitive in Sadc.
Botswana and Mozambique charge 6c/kWh, while Zambia's energy tariff is 7c, Swaziland 8c, South Africa 9c and Tanzania and Lesotho both charge 10c/kWh.
Source - Byo24News
