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ZEDTC Pushes For Electricity Tariff Hike To 15 Cents Per kWh

ZEDTC Pushes For Electricity Tariff Hike To 15 Cents Per kWh

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has bemoaned the sub-economic tariffs it is charging consumers saying they do not match its demands which include importing power from regional players.

Electricidade de Moçambique (EDM), Hidroeléctrica de Cahora Bassa (HCB), Zambia Electricity Supply Corporation (ZESCO), and Eskom from South Africa are Zimbabwe’s major suppliers of electricity.

According to ZETDC acting managing director, Howard Choga, the Zimbabwe Energy Regulation Authority (ZERA) approved a tariff of 10.63 cents per kWh.

He said the figure is being greatly depreciated when converted from the RTGS payments to US dollars to as low as 7 cents per kWh.

ZETDC is importing electricity at an average cost of 10.9 cents kWh but selling locally at 7 cents per kWh.

The power utility also purchases power from independent power producers (IPPs) at a weighted average cost of 8.6 cents per kWh while ZETDC sold at 7 cents.

Giving insights into ZETDC operations at a recent workshop held by ZERA, Choga said ZETDC now needs to charge 15 cents per kWh to be able to operate optimally. He said:

The weighted average cost of imports from EDM, HCB, ZESCO, and Eskom is 10.9 cents per kWh and the cost of internal purchases from Zimbabwe Power Company (ZPC) and Independent Power Producers have a weighted average cost of 8.6 cents per kWh but we are selling at 7 cents kWh.

Just buying at 10.96 cents and selling at 7 cents, without putting additional operational costs there, how do you think we survive, our cash flows are going south, I tell you we are surviving by not paying suppliers on time.

For many years we have been crying for a cost reflective tariff of 12.3 cents kWh but circumstances have changed especially due to borrowings that we have had to do because of the insufficiency of our cash flows, so the weighted cost of average capital has affected our tariff requirement to the extent that the tariff requirement in terms of cost reflectivity is now beyond 15 cents per kWh, that’s what we require to operate optimally.

According to Business Weekly, Zimbabwe’s projected demand for energy is likely to reach 2 350 megawatts by 2025.

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12 Comments

clueless 4 months ago

As young electricians what aspect our you coming up with to reduce the power problem in our country someone come up with solar project is going to be enough for our industries as for me i will go for nuclear power plant project


Bindula 4 months ago

Can you even split an atom nhaiwe?? And i am sure you will need nuclear physicists kwete ma electricians. Imimi munozokwana pane imwe stage ye service chain(not production chain).
Asi ambition munayo henyu comrade

chirungu siyana nacho 4 months ago

taura neshona shamwari.

Klux 4 months ago

If you are clueless, its better to Shut Up😷

I 4 months ago

We cant go quite when ISPs hike their tariffs then complain when ZESA does. They should do what's viable for their business and to meet consumer demand.
On the other side relevant ministries should encourage solar products entry into the country and make it cheaper than already. But ma fake ngaaite mashoma.


Gweks 4 months ago

Yaaa true 👍👍👍


Chirandu 4 months ago

isu ziii Kuma terrace


Doug 4 months ago

You are supposed to be producing electricity and not importing as a day to day solution. Imports should only be in an emergency. You want to make consumers pay at the import tariff and still carry on load shedding the way you are still doing? If we had not inherited Kariba Power Station and Hwange Thermal station and designs where would we be now in terms of electricity? ZESA should know that the world is now borderless in terms of technology, and Zimbabweans deserve better!


bvananguy 4 months ago

ZIMBABWE ELECTRICITY SOMETIMES AVAILABLE or simply ZESA


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Kule Kule 4 months ago

Ko mokwidza mutengo we chunhu chisiko? Dzichimo here nhai vazaya vangu?


Kungoonesana 4 months ago

7cents yabuda nepi apa imwi muchitaura zvemutengo we10.63cents. Pedzeranaizve ikoko kokutizhakira musaga tadii heduu


Ajdifiefjjsjdjcjck 4 months ago

zesa should be allowed to increase tariffs to reduce load shedding , and isu we invest in solar and gas stoves to reduce our electricity bills .



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