Zesa’s in­sis­tence on tar­iff hike in­sen­si­tive

Chronicle (Zimbabwe) - - National News -

ED­I­TOR — Util­ity power sup­plier, Zesa has promised load shed­ding to users if their up­ward tar­iff re­view is not granted. The peo­ple at Zesa need to un­der­stand that Zera, in their ra­tio­nale used the cur­rent eco­nomic stand­ings as a de­ci­sive fac­tor and noth­ing else.

That de­ci­sion was made with the peo­ple in mind. Times are hard and peo­ple can­not take an ad­di­tional cost (be­ing added) to their al­ready de­mand­ing bill and other fi­nan­cial com­mit­ments.

The July 31 edi­tion of the Sun­day News car­ried a head­line which read, “Zesa threat­ens load-shed­ding”. Are these peo­ple try­ing to hold the coun­try at ran­som if the up­ward re­view is not made?

I do not un­der­stand why Zera wants to en­gage an in­de­pen­dent con­sul­tant to as­cer­tain whether Zesa needs the money or not.

It is ev­i­dent that there may be a gen­uine rea­son be­hind their pro­posed hike but where will peo­ple get the money. Most peo­ple think that elec­tric­ity is al­ready ex­pen­sive as it is.

This hike is mis­placed. While the Gov­ern­ment is mak­ing ef­forts to im­prove the ease of do­ing busi­ness in the coun­try, in­flat­ing fees to one of the most strate­gic el­e­ments of busi­ness looks coun­ter­pro­duc­tive.

If power costs are in­creased, al­most ev­ery mean­ing­ful pro­ducer and com­pany is go­ing to be af­fected.

This does not take a ma­gi­cian or pun­dit to un­der­stand that the cost will be con­veyed to the con­sumer and all goods’ prices may also go higher.

With the Statu­tory In­stru­ment 64 of 2016 in place, Zesa must al­low lo­cal in­dus­try to grow with­out con­straints.

The poli­cies have been put in place to shield man­u­fac­tur­ers from cheap im­ports, it would not make sense if they in­crease their prices barely three months into the im­ple­men­ta­tion process.

So, peo­ple at Zesa must un­der­stand that their en­tity is a very strate­gic en­tity and a “slight” change, smaller than the one be­ing sug­gested can put an or­gan­i­sa­tion`s bud­get into dis­ar­ray.

A power tar­iff hike will ob­vi­ously send seis­mic waves across in­di­vid­u­als and com­pa­nies. Zesa must re­think their idea and find al­ter­na­tives. Vheremu, Chi­tung­wiza

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