Zesa Holdings is seeking Treasury support to continue optimum production of electricity at its thermal power stations amid rising expenses largely driven by a spike in coal prices.
This comes at a time when hydropower continues to shrink due to rapidly dropping water levels at Kariba Dam.
Treasury sources confirmed that Zesa had submitted a proposal for support to the Ministry of Finance and Economic Development “which is still under consideration”. Speaking to The Sunday Mail Business, sources within the Ministry of Energy said:
As it is, Zesa will definitely require support from the Treasury in the absence of a tariff hike . . . otherwise leaving the situation as it will certainly have dire consequences.
Any ill-advised sharp increase in ZESA tariff rates combined with power outages that we are already facing will be most unwelcome, and will certainly trigger another round of price increases and inflation.
Meanwhile, ZESA has increased load shedding hours with some areas going without power for 16 hours a day. The load shedding dubbed “stage 2” has resulted in power being cut during peak hours, that is, morning and evening.
The Ministry of Finance and Economic Development is a government organ which administers the country's fiscal and financial aspects through its respective departments. It has various organs administered by different personnel and these include among other the Reserve Bank of Zimbabwe and the Zimbabwe National... Read More About Ministry of Finance and Economic Development
Kariba is a town located in the Zambezi Valley Mashonaland West Province in Zimbabwe. Kariba town offers accommodation for tourists who visit the Kariba dam. The town also houses the hydroelectric power station, Zimbabwe Power Company. Read More About Kariba
Professor Mthuli Ncube is the Minister of Finance and Economic Development.He was the Chief Economist and Vice President of the African Development Bank ,financial, economics, investment, and public policy expert, entrepreneur and academic. Professor Ncube divides his time between the private sector in Switzerland and... Read More About Mthuli Ncube