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Zvamaida Murwira, Harare Bureau
THE Government is considering hiking power tariffs saying the decision by the Zimbabwe Energy Regulatory Authority (Zera) to refuse an increase ought to be revisited, Parliament heard.

Energy and Power Development Minister Samuel Undenge told Senators on Thursday that while Zera shot down a proposal by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to review power tariffs, Government was of the view that the electricity providing firm had a genuine case for such a proposed hike.

He was responding to a question from Mashonaland Senator Damien Mumvuri (Zanu-PF) who wanted to know if there would be constant supply of electricity given that Zesa Holdings had been denied the right to raise power tariffs.

“The ZETDC made an application for tariffs to be increased. They applied to Zera. After their tariff was considered, it was denied. Indeed, they had explained that they had a challenge in terms of the revenue that they collected and wanted it increased. Zera denied them, citing that other measures could be adopted. When we also considered it, we realised that the tariffs were low and it would be good for them to increase but those who are responsible for regulation said that when it comes to ease of doing business, it would be difficult for businesses as well as domestic consumers,” said Minister Undenge.

“Indeed, there is a point that it is better to have expensive power than not to have it at all. So, this is an issue that we are seized with and we want to balance the revenue that we get from Zesa and ensure that there is a constant supply of electricity because there is nothing for free. We are working on the issue with the respective parastatals.”

In a related matter, the Finance Bill that seeks to give legal effect on several fiscal measures announced by Finance and Economic Development Minister Patrick Chinamasa sailed through in the National Assembly on Thursday.

The Bill now awaits transmission to the Senate.