MP pushes for cheaper electricity for local authorities

MKOBA South legislator John Kuka has urged the Government to consider charging local authorities non-commercial electricity tariffs, arguing that the current pricing structure is placing a heavy burden on councils and undermining service delivery.

Speaking in Parliament recently, Kuka said local authorities were not profit-making entities and should not be subjected to the same electricity tariffs charged to commercial enterprises.

He argued that councils provide essential public services, including water pumping, sewage treatment and street lighting, yet are struggling to meet electricity costs due to financial constraints.

"Local authorities are providing essential services such as water pumping, sewage management and street lighting, yet they are operating under severe financial constraints," Kuka said.

"Councils are not profit-making entities and there is a need for Government and the Zimbabwe Electricity Transmission and Distribution Company to consider a special tariff arrangement that allows them to continue delivering critical services without crippling their operations."

Kuka said introducing non-commercial tariffs for local authorities would lower operating costs and enable councils to redirect more resources towards improving service delivery.

However, responding in the National Assembly, Deputy Minister of Energy and Power Development Yeukai Simbanegavi said the power utility was not in a position to subsidise electricity supplied to local authorities.

She acknowledged that councils faced liquidity challenges largely due to low revenue collection but noted that the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) was operating under a cost-reflective tariff framework designed to ensure the sustainability of electricity supply.

"The approved tariff methodology requires tariffs to be set at cost-reflective levels based on the actual cost of supplying electricity to each customer category," Simbanegavi said.

"Currently, ZETDC does not have the financial capacity to charge local authorities tariffs below cost-reflective levels, as it needs to cover the full cost of supplying energy."

The deputy minister added that some local authorities were worsening their financial challenges through ageing infrastructure, inefficiencies and significant water leakages, which increase electricity consumption and operational costs.

Instead of relying on subsidies, she urged councils to invest in energy-efficiency measures and infrastructure upgrades to reduce costs.

Simbanegavi also revealed that during a recent meeting of the Urban Councils Association of Zimbabwe in Kadoma, ZETDC proposed that local authorities participate in an advanced net metering programme.

Under the initiative, councils would provide wayleaves for solar power installations at pumping stations in exchange for tariff incentives of up to 12 percent.

She said the programme could help local authorities lower their electricity bills while promoting the use of renewable energy.

The deputy minister further warned that subsidising electricity for councils without direct Treasury support could weaken the financial position of the power utility and potentially contribute to a return of widespread power shortages.

She also highlighted the growing debt burden owed to ZETDC by local authorities across the country.

The debate comes amid persistent complaints from urban residents over erratic water supplies, malfunctioning street lights and deteriorating municipal services. Many councils have attributed these challenges partly to rising electricity costs and recurring power outages that affect critical infrastructure such as water treatment plants and pumping stations.

The Government's stance suggests that while support measures may be explored through energy-efficiency programmes and renewable energy initiatives, a blanket reduction in electricity tariffs for local authorities remains unlikely in the absence of additional financial backing.