“30% hike on electricity price”

The rise in production costs following the devaluation of the local currency last month has led to Zimbabwe’s power utility company  to consider  increasing electricity tariffs by as much as 30 percent

Tariffs are currently priced at 9,38 cents per kilowatt/hour, which is about US$0,04 when using an average exchange rate of 1:2,5.

“Basically, what we are looking at is that we need to look at the implications of the monetary policy before we can then put scenarios. Right now, we are still discussing with the relevant authorities to find out the implications of the monetary policy on the tariffs,” Zimbabwe Electricity Distribution Company’s (ZETDC) commercial services manager Richard Mariwa told NewsDay yesterday.

Speaking on the sidelines of the Zimbabwe Energy Council (ZEC) Electricity Outlook breakfast meeting, Mariwa said:

“It is not cost reflective. But, be that as it may, we need to find out what are the fundamentals that need to be considered, moving forward. If you look at it to bring it back to the same (tariff level before the 2019 monetary policy in terms of USD) or something nearer to that you are talking about the 25% to 30% range.”

 

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