Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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Zimbabwe’s Power Prices Too Low for Independent Producers, Regulator Says

Zimbabwe’s Power Prices Too Low for Independent Producers, Regulator Says

http://www.bloomberg.com/

By Godfrey Marawanyika – Jul 28, 2011 12:25 AM GMT+1000

Zimbabwe’s licensed independent power producers aren’t filling the gap left 
by the state-owned utility because prices are too low, Zimbabwe Electricity 
Regulatory Authority spokesman Fullard Gwasira said.

“Our tariff compared to that charged in the region is really cheap,” Gwasira 
said in an interview on the sidelines of a manufacturing industry conference 
in Victoria Falls, Zimbabwe. Currently ZESA is charging 7.53 cents per 
kilowatt, compared with a regional average of 12 cents, he said.

Zimbabwe, the southern African nation with the second- biggest reserves of 
platinum and chrome, suffers regular power outages, and rations energy to 
homes and businesses.

ZESA is owed $450 million by consumers, which is affecting its operations, 
Gwasira said. It owes other suppliers $100 million, he said.

Government should lift a ban on private power importers as ZESA is failing, 
Confederation of Zimbabwe Industries President Joseph Kanyekanye said in a 
speech at the conference.

“Industry requested an opportunity to import power directly,” Kanyekanye 
said. “This was shot down.”

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