ZESA to increase tariffs by nearly 50%
By Tererai Karimakwenda
09 November, 2011
A shocking 47 percent increase in electricity charges is being planned by
the Zimbabwe Electricity Supply Authority (ZESA), after already raising
tariffs by 31 percent earlier this year. The troubled parastatal said they
needed an estimated $2.5 billion for construction and rehabilitation of the
Kariba and Hwange power stations, due to years of neglect.
ZESA chief executive Josh Chifamba reportedly said that production costs
were much higher than the current electricity tariffs. And according to The
Daily News newspaper, repairs and expansion of the two stations would take
place over a five-year period, and increase power output to 2 220 megawatts,
from the current 1320 megawatts, leaving a shortfall of 900 megawatts.
The local Zim press reported the news Wednesday morning, just as power
outages hit the capital and most parts of the country, due to a “severe
shock” that is believed to have originated in Mozambique.
Residents and businesses have warned that the new tariffs would be too high
for most ordinary Zimbabweans, who are already struggling to pay for
electricity at the current rates. Regular, disruptive power cuts are badly
affecting industry and a chaotic billing system has also made the situation
unbearable.
Harare based journalist Jan Raath blamed ZANU PF for the current mess that
ZESA is in. He explained that for the last 20 years ZESA has been forced to
charge “artificially suppressed” prices for power, depriving the power
company of much needed extra revenue for repairs, maintenance, expansion and
equipment upgrades.
Explaining why the party would force the power company to charge
unreasonable prices, Raath said: “ZANU PF is a people’s party and they
believe if you give people what they want they think people will keep
supporting them, and this is tragically short-sighted.”
Raath said what ZESA needs are loans from the IMF and World Bank to finance
the critical repairs and upgrades, but Zimbabwe is “hugely” in debt and does
not qualify for any loans until the current balances are settled.
Private investment from foreign companies is also an option Raath said, but
ZANU PF’s so-called “indigenous empowerment” policy, which requires foreign
owned companies to give up a majority of their shares to locals, has scared
off potential investors. “They completely shot themselves in the foot,”
Raath added.
Like all parastatals in Zimbabwe, ZESA has been plagued by corruption and
mismanagement for years. The unity government has focused mostly on
resolving the political crisis gripping the country, while the country’s
economy and infrastructure continue to suffer. Sadly, it is the ordinary
people who continue to pay the price.