HARARE – Troubled power utility, ZESA has sought the green light from government to hike power tariffs by USc2/kWh to raise revenue to finance capital projects and to repay outstanding loans, among other targets.
Through its subsidiary, Zimbabwe Electricity Transmission and Distribution Company (ZETDC), the power generator applied for the tariff review from the Zimbabwe Energy Regulatory Authority (ZERA).
Justifying the proposed increase, ZETDC said the proposed hike is meant to “enable the utility to raise the revenue required for service provision in 2023 and to cover costs for purchase of electricity, operations and maintenance, regulatory costs, research and development costs and general admin.”
The company also says the proposed increase will help it “create capacity to be able to support growth in the mining, agriculture and tourism sectors”.
With the revenue expected to be generated, ZETDC says it plans to “service the loan for Hwange 7 and 8, repower Hwange 1 – 6, procure operational vehicles, critical spares and equipment”.
ZESA has come under fire for failure to guarantee uninterrupted power supplies to households and businesses amid recurrent power cuts that often stretch for long periods in a single day.
The ZESA woes have been attributed to failure by government to bring about sustainable investment within the crucial sector as well as tender fraud, among other reasons.
A lot of citizens tired with endless power outages have resorted to alternative forms of energy to escape the crisis.
