The Zimbabwe National Chamber of Commerce (ZNCC) has commended the Zimbabwe Electricity Supply Authority (ZESA) for the electricity tariff increase since the company is undercapitalized.
ZNCC Chief Executive officer Christopher Mugaga said the 19.2 percent increment is way below the monthly inflation figures considering the way the country’s economy is going down which makes it inevitable for the tariff to go up.
“We all know the energy challenges haunting us as the private sector. ZESA is undercapitalized and given this fact, the only way for them to get out of this hole is to charge the right price
As business, we should be honest with each other and desist from the blame game because consultations or no consultations, the tariffs had to go up. We are always in touch with ZESA and ZERA and we know the prevailing situation in the energy sector” said Mugaga
On Thursday, ZESA Holdings, through its subsidiary, the Zimbabwe Electricity Transmission, and Distribution Company (ZETDC) announced a 19 percent increase for all tariffs from the 1st of March.
Meanwhile, ZESA maintained consumer subsidies, with the larger subsidy being on the first 50 kilowatt hours each month, the cost of which rises from 41c/kWh to 49c/kWh.
The changes also mean that the first 50kWh now costs $24.50 while the next 150kWh rise in price from 91c a unit to $1,08 a unit, giving a total for a month for this band of $162.