The Zimbabwe Energy Regulatory Authority (ZERA) has reversed its decision to award a five percent increase of power tariffs just four days after approving the new tariffs.
The power utility ZESA sought a five percent increase of power tariffs from 9.86 cents per kilowatt hour to 10.36 cents per kilowatt hour with a view to raise US$890 million for the supply of 8 594 gigawatt hour.
According to sources within the energy sector, a meeting was held with stakeholders as there was uncertainty over the reaction of consumers, hence the conclusion to suspend the move to increase power tariffs by five percent.
Responding to questions raised by the ZBC News, ZERA board chairperson Ms Ester Khosa in a statement said after duly considering the tariff application, the macro-economic conditions prevailing in the country, written and oral submissions from various consumer groups and stakeholders as well as facts and evidence provided by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), the energy regulatory board decided there will not be a tariff increase this year.
ZERA also noted that the current tariffs charged are adequate to meet ZETDC’s operations and expressed hope the power company will improve its debt collection and operation efficiencies as well as reduce technical and non-technical losses.
Early this year, the ZERA embarked on consultations with government and other stakeholders who include the mining, agricultural, industrial, commercial and domestic consumers to improve its debt collection and operation efficiencies as well as reduce technical and non-technical losses.