Despite not having electricity for the better part of the day, ZESA is considering to hike it’s power tarrifs again just last month. According to a report by Equity Axis, ZESA CEO, Eddington Mazambani told the Portfolio Committee on Energy and Power Development that the adverse movements in exchange rates and increase in inflation is forcing the state-owned electricity provider to review upwards it’s tarrifs. From Equity Axis’ report:
As inflation and exchange rates continue on an upward trend, the energy supply authority has indicated that it will be reviewing upwards the current power tariffs to help boost its operational efficiencies.
This was revealed on Thursday 19th of September 2019 during the Portfolio Committee on Energy and Power Development receiving oral submissions from the ministry representatives and various stakeholders on pre-budget consultations.
ZESA’s CEO reportedly said the company has already incurred a loss of $4 million owing to the unexpected change in exchange rates.
Beginning of last month, ZESA increased its tarrifs by three-fold from ZWL9.86c/ kWh to an average of ZWL27c/kWh for domestic users. However, the free-falling Zim Dollar which has lost 82% of it’s value since February has rendered August’s tarrif hike useless.
August’s tarrif hike was accompanied by a new tarrif model which penalizes heavy electricity users. What’s interesting,though, is that despite last month’s increase and this new tarrif model, load shedding hasn’t even lessened.
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