Zero Pindula

WhatsApp Message

*Electricity Tariff Increase Could Trigger Price Hikes - CZI*

*Follow Pindula on WhatsApp for daily new updates*
https://whatsapp.com/channel/0029Va84dngJP21B2nWeyM3v?xo

Confederation of Zimbabwe Industries (CZI) president Kurai Matsheza says another electricity tariff increase could trigger a rise in prices.

This comes as manufacturers, who were seeking the Government’s intervention on umbrella US$ billing, were told to embrace it and expect a cost-reflective tariff by the Minister of Energy and Power Development, Zhemu Soda.

----------
itel A70 256GB
$99USD

WhatsApp: https://wa.me/263715068543
Calls: 0772464000
----------

Speaking to Business Times, Matsheza said the development will trigger price increases, as the businesses will pass on the cost to consumers to survive. He said:

> We engaged the Energy and Power Development minister [Soda Zhemu] over the blanket US$ billing and his response was the billing was justified and the current power tariff was not cost-reflective despite an increase to around US$0.12 per kWh from US$0.09/ kWh.

Last month, captains of industry and ZESA held a meeting on power billing in USD but the meeting proved fruitless after the power utility rejected local companies’ proposals.

Manufacturers wanted the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a unit of ZESA Holdings, to have the US$ bills to be matched to the proportion of forex sales but the power utility rejected the proposal and insisted on a blanket bill.

Matsheza said the tariff for exporters was way above the regional average of US11.7c/ kWh. He said:

> ZETDC told us the billing in US$ for exporting companies and those who are generating US$ through local sales should pay 100% in forex.

> We raised an issue to say these blanket groupings may not be ideal. Whilst we understand the need to raise US$, why didn’t they look at the individual customer and say to what extent do you generate US$ sales and bill accordingly?

Captains of industry are arguing that if one is an exporter and exports at an extent of 50% that is what must be billed.

However, according to CZI, Zhemu said the sub-economic tariff had left ZESA in a crisis.

More: Pindula News

_If you found this article useful_
*Please support Pindula by forwarding to friends and groups*