ZESA Intends To Raise Electricity Tariffs By 30 Per Cent

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Zimbabwe’s power utility, Zimbabwe Electricity Supply Authority (ZESA), is mulling increasing electricity tariffs by as much as 30% through its subsidiary, the Zimbabwe Electricity Distribution Company’s (ZEDTC)).

The tariff increase has been necessitated by the floating of the local currency, the RTGS Dollar against the greenback, which in turn raised production costs for the power utility.

This was revealed by ZETDC commercial services manager Richard Mariwa in an interview with Newsday on Wednesday. He said:

Basically, what we are looking at is that we need to look at the implications of the monetary policy before we can then put scenarios. Right now, we are still discussing with the relevant authorities to find out the implications of the monetary policy on the tariffs.

… It is not cost reflective. But, be that as it may, we need to find out what are the fundamentals that need to be considered, moving forward. If you look at it to bring it back to the same (tariff level before the 2019 monetary policy in terms of USD) or something nearer to that you are talking about the 25% to 30% range.

Right now, the outlook for 2019 is not that good, in the sense that we are having challenges being able to provide quality supply due to the level of vandalism that is ongoing.

Currently, tariffs are currently priced at 9,38 cents per kilowatt/hour, which is about US$0,04 when using an average exchange rate of 1:2,5.

More: Newsday


The Zimbabwe Electricity Supply Authority Holdings is the country's biggest power producer and regulating company. It operates under the Ministry and Energy and Power Development and it runs a number of subsidiary companies with various specialities in power regulation and communications. Read More About Zesa

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