Zera embarks on electricity tariff increase consultations

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Zimbabwe-Energy-Regulatory-Authority-(Zera)

The Zimbabwe Energy Regulatory Authority (Zera) has embarked on consultations to determine the 2014 electricity tariff in response to an application by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) for a 5% increase.

Business Reporter

ZETDC applied to increase the average tariff by 5% from the current 9.86c/kWh to 10.36 c/kWh.

A tariff of 9,83c per kilowatt hour was awarded in 2009, but was reversed and replaced by a 7,53c/kWh.

The power utility has been arguing that the country’s tariffs were lower compared to the region and were uneconomical. The country’s tariff is less than 10 cents, the figures is less than 12 cents which is the regional average tariff. Zera chief executive officer Gloria Magombo said the energy regulatory body was consulting farmers, business, residents, consumers and Competition and Tariff Commission.

“The public is advised to note that Zera will deliberate on the tariff application, interrogate the costs of production of electricity and come up with a tariff that will ensure viability of the electricity supply industry but also affordable to all customers,” Magombo said.

She said Zera’s mandate was to ensure that tariffs were affordable while enabling licensee to recover the full costs of its business activities, including a reasonable return.