ZIMBABWE‘s state-owned power utility ZESA Holdings has raised its tariffs by close to 200 percent following government approval.
The electricity tariff for non-exporting businesses has increased from an average of Z$9.86 cents per kilowatt per hour (c/kWh) to an average of $Z45c/kWh (approximately US$5c/kWh).
Delivering the 2019 Mid-Term Budget Review Statement in Parliament on Thursday Finance minister Mthuli Ncube added that the electricity tariff for domestic consumers has increased from an average Z$9.86c/kWh to an average Z$27c/kWh (approximately USc3/kWh), which is subsidised.
“The electricity tariff for Agriculture consumers be increased from an average of Z$9.86c/kWh to an average of Z$27c/kWh (approximately USc3/kWh), which is susbsidised,” Ncube said.
“Maintain the tariff for ferrochrome smelters and other miners at US$0,067/ kWh and US$0,0986c/kWh, respectively, and ensure that the resources are ring fenced in a special account solely for purposes of importing electricity.”
He added: “Zesa be allowed to bill all other exporters and foreign currency earners in foreign currency and ensure that the resources are ring fenced in a special account solely for purposes of importing electricity.”
The increase in tariffs comes at a time when Zimbabwe is experiencing massive power shortages as well as failure to pay external power debts.
It also comes as ZESA management is hitting a brick wall in their marathon negotiations with ESKOM who are demanding a pre-payment before entering into any deal new with Zimbabwe.