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Zimbabwean outcry over Zesa power tariff increase

by Staff reporter
31 Oct 2023 at 01:49hrs | Views
The Consumer Council of Zimbabwe (CCZ) has criticized the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) for increasing power tariffs in US dollars, stating that there is no justification for such significant tariff hikes when the US dollar is stable.

The Zimbabwe Energy Regulatory Authority recently approved a tariff increase of US$0.02 cents per kilowatt-hour for ZETDC, a subsidiary of Zesa Holdings. CCZ's Matebeleland consumer protection officer, Comfort Muchekeza, expressed concerns about the potential impact of the tariff increase on the costs of goods and services, suggesting that price increases could result from this decision.

However, CCZ encouraged businesses to explore other options before raising their prices and to prioritize maintaining the quality of goods and services. They emphasized that the stability of the US dollar should enable companies to make reasonable profits, making large mark-ups less justified.

Busisa Moyo, the CEO of United Refineries, expressed his concern that the increased power tariffs would raise the cost of doing business in the manufacturing sector, potentially affecting competitiveness within the African Continental Free Trade Area (AfCFTA). He also highlighted challenges with municipal rates and levies, noting that competitors like South Africa and Zambia were already ahead of the curve.

Zesa Holdings has issued a warning of 30 days of tight load shedding due to technical faults at the Hwange Power Station, indicating potential power shortages in Zimbabwe.

Source - newsday