ZESA set to hike electricity tariffs

The national power utility Zimbabwe Electricity Supply Authority (ZESA) will soon increase electricity tariffs.

The energy utility is arguing that the current charges are unsustainable especially when placed in US dollar terms.

The tariffs given by ZESA also include 6% Rural Electrification Levy.

However, according to market watchers, the biggest problems at ZESA are not low tariffs as such, but corruption, incompetence and a bloated company structure.

Meanwhile, ZESA Holdings executive chairperson Sydney Gata recently admitted to Parliament that there was irregularities in the way the utility was conducting its business.

He said some unlawful directives were coming from the Office of the President, through a ministerial orders, which couldn’t be gone against.

“I am yet to see any project officers who have rejected the ministerial directives. Some members have been punished for executing such ill-considered ministerial statements,” he said.

According to Gata, ministerial directives” are problematic when they are in violation of corporate governance best practice.

He added that as ZESA they were arm twisted to accept what they do not need.

He said this when he appeared before Public Accounts Committee to give Oral evidence on the ZESA Forensic Audit Report.

The tariffs hike being sought, will change the previous Zimbabwe Energy Regulatory Authority approved tariffs for the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), the division of ZESA that provides electricity to final consumers.

-Zwnews