ZESA acting group chief executive officer, Patrick Chivaura, has said that electricity tariffs are likely to be reviewed on a monthly basis based on the exchange rates.
Chivaura said that the monthly power tariff hikes are aimed at improving the power situation in the country. Speaking at an energy conference in Bulawayo, Chivaura said:
We are glad that for the first time an indexation formula tracks the changes in foreign currency. The changes in other priorities were also approved by government, and so we are able to review it on a monthly basis.
We will be able to adjust our tariffs accordingly … if the float on foreign currency exchange goes up, our tariffs will go up, if the exchange goes down, the tariffs will also go down.
Chivaura echoed remarks by industry players that it was better for the tariffs to go up so as to secure more power than to have low tariffs when there is no power.
His remarks come after the power utility recently increased the tariffs by 583 per cent.
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