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Brighton Gumbo Business Reporter
THE Zimbabwe National Chamber of Commerce (ZNCC) has urged power utility, Zesa Holdings, to use some of its savings from reduced power generation to import electricity and avoid increasing tariffs.
Zesa’s power distribution unit, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), recently proposed a 49 percent tariff hike which they argue is cost reflective and necessary to augment emergency power imports.
Last month, the power utility announced that it had applied to the Zimbabwe Energy Regulatory Authority seeking approval to increase tariffs from 9,86 cents per kilowatt hour to 14,69 cents/kWh.
ZNCC president, Davison Norupiri, told Business Chronicle that the industry and businesses in the country were worried about the implications that are likely to arise from the proposed tariff hike given the prevailing harsh economic conditions.
He said since the Kariba Power Station was no longer producing power at its maximum capacity, there was need for Zesa to redirect savings from the reduced power generation to import electricity.
“Instead of Zesa proposing this exorbitant tariff hike, as industry our position is that the power utility has to channel the savings from reduced power generation to importing electricity. We’re aware that Zimbabwe’s main electricity plant, Kariba Power Station, is no longer producing at its optimum capacity due to low water levels. The savings realised from reduced power generation should pay for power imports,” said Norupiri.
ZETDC requires over $1.2 billion this year for its expenditure while the Zimbabwe Power Company (ZPC) needs over $450 million.
Businesses in the country recently objected to the proposed electricity tariff increase saying they were already struggling to pay the existing power charges.
The Confederation of Zimbabwe Industries, the Zimbabwe Chamber of Mines, the Zimbabwe Farmers’ Union, the Commercial Farmers’ Union and the Zimbabwe Commercial Farmers’ Union, met and agreed that any increase in power tariffs would negatively impact on their operations and viability.
Zesa says the electricity tariff increase is necessary to augment emergency power imports and reduce load shedding.