In an interview, ZESA spokesperson, Fullard Gwasira, said that the tariffs in the country were below the regional charges and this has scared investors and limited ZESA’s ability to provide adequate power to consumers.
Currently most parts of the country are experiencing protracted power outages; this according to ZESA has been caused by the continued expansion of cities which means an increased demand for power.
ZESA has said that if people do not pay there will be no service at all, a red rag to the residents who are threatening to boycott rates unless ZESA slashes the 31 percent increases.
“Bold decisions have to be made. We are moving to a cost reflective tariff, this is a journey and as we get to the end of the year we will make another application for 2012 and we will continue until the tariffs have reached economic levels,” said Gwasira.
ZESA increased tariffs last week from 7.53 cents to 9.83 and the power provider is seeking to reach the average regional tariff of 12 cents.
“We have had sub economic tariffs and we have kept it for the past two years but now other costs drivers such as diesel have gone up. We also import power from the region on an average of 12 cents and we also have seen a 30 percent gain by the rand against the US dollar this means that we have to increase the tariffs,” said Gwasira.
Both Kariba and Hwange were constructed before independence at a time when the country had a small population. Since 1980 there has been no meaningful investment into the sector despite the obvious increases in the population.
Post published in: Business