Presenting oral evidence before the mines portfolio committee on Monday, Energy Minister Samuel Undenge called for an increase in electricity tariffs claiming that ZESA is receiving revenue below its operating capacity.
The revenue which ZESA is receiving is below the cost of its operations and there is that constraint. I think you remember at one time I called for a tariff increase and at that time it was not taken. For the past five to six years ZESA has not known a tariff increase. When you compare to other countries like South Africa the tariffs are increased on an annual basis but we don’t have that in our pricing system so we need to address that.
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The committee urged Undenge to come up with alternative plans saying the public cannot afford an increase under the difficult economic environment.