ZESA won’t budge on tariffs
by Thulani Munda Monday 05 September 2011
HARARE – The state owned Zimbabwe Electricity Supply Authority (ZESA) has
turned down pleas to reduce a 31 percent tariff hike consumers say is too
steep and unjustified given shoddy service from the power utility
characterised by intermittent supplies.
ZESA chief executive officer Josh Chifamba said at the weekend that the
corporation would still be running at a loss even after hiking charges for
electricity, a situation he said made it impossible to lower tariffs.
“In terms of loses, up to the end of June we have raked in more than US$100
million of loses,” Chifamba said. “These loses are actually a mirror image
of the maintenance that has not been done if you look at the accidents that
are taking place all over the country. It’s quite atrocious.”
Chifamba, at the helm of a ZESA management team that is routinely accused by
critics of corruption and mismanagement, said the power firm was owed US$449
million by consumers.
Domestic consumers account for 46 percent of the money owed to ZESA, while
industry and the government account for 30 and 10 percent respectively, he
said.
ZESA more than a week ago increased tariffs to 9.83 US cents per
kilowatt-hour up from 7.53 cents.
ZESA’s inability over the years to boost generation capacity at its ageing
power stations and a critical shortage of foreign currency to import
adequate electricity from neighbouring countries has left Zimbabwe grappling
with severe power shortages.
The energy firm says cash-rich foreign investors remain reluctant to provide
funding badly needed to boost power generation because of uncertainty about
the country’s future political and economic direction.
A coalition government formed by President Robert Mugabe, Prime Minister
Morgan Tsvangirai two years ago has brought a degree of stability to
Zimbabwe’s economy but the political future remains uncertain. — ZimOnline