Low tariffs bleed Zesa

DELAYS in reviewing electricity tariffs to be cost reflective have left the country’s power utility ZESA in huge debt and threatening to bring back power cuts that had become a thing of the past.

Already, suppliers of coal are threatening to stop supplies owing to incapacitation caused by the Zimbabwe Power Company (ZPC), a subsidiary of ZESA. Added to this, is a huge water bill from the Zambezi Water Authority.

Because of sub-economic tariffs, the power utility can neither service nor buy boilers, transformers and secure oils and chemicals that should all be paid for in US dollars.

Last year, the Government took a decision to implement a tariff indexation formula that would align Zesa tariffs to movements caused by inflation and the exchange rate.

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