The energy regulator, ZERA (Zimbabwe Energy Regulatory Authority), has rejected an application made by companies under the national power utility ZESA Holdings for a tariff increase.
In January this year Zimbabwe Power Company (ZPC) a ZESA subsidiary sought a 22% increase in power costs which would be passed on to ZETDC, another ZESA outfit which handles national distribution.
The increase would have raised the cost of electricity by 49% from 9,86 cents to 14,69 cents per kilowatt hour.
According to ZERA chairperson, Ester Khoza, the regulator decided to retain the current tariff after considering submissions from various consumer groups and stakeholders as well as facts and evidence provided by ZETDC.
ZESA provides the country with power at a subsidised cost and has argued that an increase would put the cost of energy in Zimbabwe at par with other countries in the SADC region like Zambia, Namibia, and South Africa.
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yaah i think its a prominant ideal but since the economy is on the cutting edge this would bring diversication to other effiency sources of energy ie solar system #This_Flag
What is the reason for rejecting the price increase?
How does a 22% increase in power costs result in a 49% increase in tariff?
The increase was to cover the cost incurred by the controversial Dema diesel power station run by Bona’s brother in law. I see these increases coming anyway after the intervention of the big guys. I bet @Energy Guy you know that Kariba produces electricity at $0.04/Kwh compared to the Chikore’s price of selling to Zesa at $0.11/Kwh.