Minister defends power tariff hike
THE Minister of Energy and Power Development, Advocate Fortune Chasi, has defended the latest 320 percent electricity tariff increase, adding that the money raised will be used in boosting power generation in the country.
The Zimbabwe Energy Regulatory Authority (Zera) approved a power tariff increase by Zesa and added that it will be reviewed regularly in line with the movement of the interbank exchange rates to keep the power company alight in the wake of massive shortages that have seen the company introducing loadshedding of up to 18 hours per day in some areas.
In an interview, on the sidelines of a tour of Hwange Power Station stage 7 and 8 expansion project on Thursday, Minister Chasi told Sunday News that increasing the tariff was necessary as it was meant to keep Zesa competitive.
“The primary purpose of increasing the tariff and making it cost reflective is to say that we want a solvent Zesa that is able to interact with other players in the region and world to get financing. The tariff will also help us to get investment into the country in the area of energy, that is our expectation as Government and we are working very closely with Zesa on this. The new cash flows or inflows that will be coming in arising out of this tariff will be applied towards generation of power first and foremost. So, I would like Zimbabweans to understand that first of all for us to have Zesa as a continuous business they have to at least meet their costs which has not been the case for many years. Therefore, this tariff is really a turning point for this country and the economy and for Zesa itself,” said Minister Chasi.
He said the revenue realised from tariffs will not only cater for equipment but would also go towards motivating workers at the company.
He said part of addressing its $1,2 billion legacy debt Zesa was on a drive to recover its money and urged people owing the power utility to engage and make payment plans.
“Zesa is on a drive to collect what is due to it and I think there is general agreement. I haven’t come across anybody in the country who says the bill must not be paid. We must pay our bills on time, those that have challenges must engage Zesa. In the absence of an agreement to pay people should not expect Zesa to continue to supply power.”
He said the various investments being undertaken by Government such as expansion of the Hwange Power Station that will add an additional 600MW to the national grid was an economic enabler and will see the country having enough power to export.
As part of addressing the power shortage challenges the Government has also set its sights on utilising water bodies such as TugwiMukosi Dam to generate power,” he said.