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Zesa to cut tariffs

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The Competition and Tariff Commission (CTC) Friday published the findings of an investigation which showed that Zesa’s consumer-end tariff of $0,753 per kilowatt-hour was hardly based on the cost of power generation, transmission, distribution and metering.

The authority said Zesa Holdings should do away with its parent-subsidiary structure and merge into one entity after noting the national power utility was committing a large portion of tariff income to the salaries and benefits of directors and managers.

The move would see tariffs coming down by a significant margin from the current consumer-end tariff of $0,753 per kilowatt-hour.

CTC made this conclusion after instituting an investigation into allegations of abuse of monopoly in Zimbabwe’s electricity sector in October last year following extensive complaints by power users that the country’s sole commercial supplier of electricity energy had become a ruthless “taxman”.

Zesa is one of parastatals criticized by government for creating a highly privileged aristocracy of “fat cats” who live “like little gods” in terms of earnings and benefits. CTC chairman, Dumisani Sibanda, said the investigations revealed that a greater portion of Zesa’s tariff income was being committed to financing the company and its subsidiaries, which have their own boards and managing directors and executive managements.

Zesa was unbundled into five subsidiaries in 2002.

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