The Zimbabwe Energy Regulatory Authority (ZERA) has approved a new electricity tariff adjustment for the Zimbabwe Electricity Transmission and Distribution Company (ZETDC). In a statement seen by Pindula News, the regulator said the new tariff has been set at USc2/kWh, effective immediately. Read the statement:
"ZERA held a press conference today at its headquarters to announce the approval of electricity tariffs for the ZETDC. ZETDC applied for the approval for an adjustment of USc2/kWh & and stagger the tariff to a level of cost reflectivity.
Prior to the application, the Utility has been charging an average tariff of USc10.63/kWh approved in October 2019 and maintains the value of that tariff through indexation. The new tariff adjustment of USc2/kWh has been implemented effective immediately."
ZETDC, a subsidiary of the Zimbabwe Electricity Supply Authority (ZESA), had requested the adjustment to raise funds and strengthen its network. The previous tariff was USc10.63/kWh, which had been maintained since October 2019. ZETDC stated that the previous tariff was insufficient to meet their financial obligations and power generation needs. ZETDC has also previously attributed its failure in connecting 400,000 customers to insufficient funding caused by low tariffs and vandalism of infrastructure.
ZETDC said it intends to use the money to fund various projects, including network rehabilitation, loan servicing, and unit refurbishment. Compared to other countries in the Southern African region, ZETDC had one of the lowest electricity charges. For instance, South Africa charges US11.2 cents per kilowatt-hour (kWh), Namibia charges US16 cents/kWh, and Mozambique charges US12.4 cents/kWh. Madagascar sets the tariff at US15.3 cents/kWh, Mauritius at US14 cents/kWh, Malawi at US12.6 cents/kWh, and Eswatini at US14 cents/kWh. Botswana charges US11 cents/kWh, Zambia charges US7.4 cents/kWh, Tanzania charges US10.54 cents/kWh, and Seychelles charges US27 cents/kWh.
While the power situation has slightly improved, Zimbabwe still faces electricity shortages because its power generators are not working properly. This is due to breakdowns, a lack of coal for thermal power stations, and low water levels at the Kariba Dam, which supplies the Kariba South Hydro Power Station. To make up for the shortfall, Zimbabwe imports electricity from neighbouring countries like South Africa, Mozambique, and Zambia.