ZESA Tariffs Shoot Up 200-400 Percent
Finance and Economic Development Minister Mthuli Ncube has announced an immediate hike in the electricity tariffs of between 200 – 400 percent.
Non-Exporting businesses will now pay ZWL$0.45 (45 cents) per kWh from the current 9.86 cents per kWh. This is approximate, US$0.05 (5 cents) per kWh.
Domestic consumers will now pay ZWL$0.27 (27 cents) per kWh from the current 9.86 cents per kWh. This translates to approximately, US$0.03 (3 cents) per kWh.
Agriculture has been subsidized and will also be paying the same tariffs as domestic consumers, i.e. 27 cents.
Zesa has been granted permission to charge in foreign currency for exporters and miners.
The increase in power tariffs comes as no surprise as the government and Zesa officials have been complaining that the current tariffs are sub-economic and that the power utility was actually selling the electricity at a huge loss.
The industry had even proposed a hike of as much as 14-fold to ensure that there is guaranteed electricity. Zesa, on the other hand, has been advocating for a 13-fold increase to ensure that it does not sell the electricity at a loss.