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Consumers should brace for yet another hike in tariffs as Energy and Power Development Minister, Soda Zhemu says that Electricity tariffs will continue to increase pursuant to inflation and forex exchange rates to meet the cost of production.
Movements in the exchange rate and inflation will continue to threaten the power utility’s viability if tariffs are not raised.
Recently, Zesa effected a 30 percent power tariff hike arguing that the low tariffs were inhibiting its efforts to operate efficiently.
The Minister of energy despite the hike says we cannot guarantee the nation of cheap electricity when it is not sustainable, which will see tariffs being increased on a regular basis.
He said charging sub-economic tariffs will result in a continuous decline in both quantity and quality of service.
“In order for us to achieve what we are envisioning, that is to provide adequate power and sustainable electricity, there is a need for tariffs to be reviewed regularly. “
“It is also imperative that power be sold at cost-reflective tariffs, that way the producer is able to continue to offer and improve on the service delivery. Movements in the exchange rate and inflation will continue to threaten the power utility’s viability if tariffs are not raised,” said Zhemu.
He added that The power utility has struggled to fund power imports, retain experienced staff, and service its distribution infrastructure owing to sub-economic tariffs.
Power utility ZESA have since been pushing for tariff increase stating that low charges have become sub-economic.
Zesa currently imports power from South Africa and Mozambique.
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