The Zimbabwe Energy Regulatory Authority (ZERA) said that the latest tariff hike by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) was long overdue as the previous tariff was no longer sustainable.
In a statement on Wednesday, the Authority revealed that electricity charges have been raised from 38,61 cents/kWh to $162.16c/kWh effective 3 October 2019. Part of the statement says:
At that level (38,61cents/kWh), the tariff was not enough to cover the operating costs of the electricity companies including coal, diesel and essential equipment leading to a shortfall of ZWL320 million in August 2019.
ZERA said the tariff hike is expected to significantly improve the electricity supply position from the Zimbabwe Power Company (ZPC) as the company can procure enough coal stocks.
This will consequently lead to reduced load shedding hours as the power utility will also be able to import power from the Southern African Power Pool (SAPP).