ZESA Tariff Increase Unsustainable – CZI

“We believe ZERC is not properly constituted and the apparent use of government officials as proxy for ZERC is illegal and introduces the inefficiency in the regulation of tariffs,” CZI said.

“Having pointed this in the past we have instructed our lawyers to take legal action against ZERC to force it to rescind their illegal tariff hikes,” the industry body said. “This shows lack of understanding or empathy with the nascent and fragile economic/industrial recovery underway since 2009.”

The CZI said the tariff increase would have an inflationary effect as business will pass on the cost to consumers.

“The inflationary ramifications of this purported increase constitute a disaster in terms of competitiveness of local businesses and can also herald a spat of price increases throught the country,” CZI said.

CZI said it had not been consulted on the pending increase despite being a member a technical committee set up by government comprising the power utility and industry.

“We believe ZERC is not properly constituted and the apparent use of government officials as proxy for ZERC is illegal and introduces the inefficiency in the regulation of tariffs,” CZI said.

The Zimbabwe Electricity Regulatory Commission (ZERC) has announced upward increase which will see local consumers paying an average of US$0,09 cents a unit despite an increase in load shedding.

Zimbabwe currently produces 1400 MW of power compared to a national requirement of 1900 MW with Kariba currently producing 615 MW ,Bulawayo Power station coming in with 24MW with 160MW being imports.

Zimbabwe is battling to raise funds to refurbish its power plants with $125 million currently being required for Hwange Power station.