ZESA Holdings defended the approval of a 50% increase in the electricity tariff to $0.1221/kWh from $0.08/kWh, saying it was to ensure uninterrupted supply to miners and mining. industry.
Mining companies say the rise threatens the achievement of the US$12 billion mining industry.
However, Howard Choga, managing director of the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of ZESA, said that for twenty years the electricity utility had been operating below cost. Shoga said:
The challenges of electricity supply add to the challenges faced by miners.
The mining industry believes that electricity costs are very expensive; they want it lowered from the current US$0.1221/kWh to US$0.1026/kWh.
But the challenge is for us to find what is needed to correct the anomaly.
What I can tell you is that we are behind in terms of network renovation and rehabilitation by about $2 billion.
This is actually due to the fact that for 20 years we have been operating below cost.
…let’s accept the tariff to have a better future in Zimbabwe and achieve our goals.
According Business hours, demand this year was 1,850 MW against supply of 1,400 MW, with imports from Zambia, South Africa and Mozambique boosting local supplies. | Business hours
Download the Pindula app for better user experience.