For a long time consumers in this country have not known of price reductions in whatever format. All they have become accustomed to has been the continued rise in the cost of living. Editorial Comment
The announcement, therefore, by Zesa Holdings subsidiary, Zimbabwe Electricity Transmission and Distribution Company, earlier this week that there would be a reprieve for prepaid and large electricity users could not have come at a better time, only days into the new year.
Under the fee structure that took effect on January 1, prepaid users will get the first 50 kilowatts per hour at $0,02, while business would enjoy a 20% reduction on the maximum demand charge. In an effort to encourage responsible use of power by business, the power utility also reduced the off-peak tariffs to $0,04 per unit from $0,05.
Despite announcing a marginal increase of 0,3% on overall tariffs and apparent mixed signals by the power utility, we believe that it was long overdue for consumers to use energy responsibly given the perennial energy crisis faced by the country.
“The lifeline units for prepaid are aimed at cushioning domestic users. We have been responsive to the calls by stakeholders, hence the rationalisation we have done. In order to encourage the shift to the off-peak period, tariffs have been reduced by 20%,” said ZETDC acting commercial director Ralph Katsande.
The move could signal the thawing of relations between industry and the power utility. This is most welcome given that the two should work hand-in-glove. There will not be any industry to talk about without power.
Unsustainable energy costs have been cited as one of the reasons for making local manufacturing companies uncompetitive. Capacity utilisation for local industries plunged to 44% from 57% year-on-year last year due to a host of problems.
We hope this will bring to an end running battles between the two over tariffs. No doubt benefits of the downward review on the maximum demand charge would go a long way in reducing the cost of doing business for companies in the mining and other sectors. This should go a long way in making locally-produced goods competitive both on the pricing and quality front.
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The extension of a reprieve to prepaid users through the introduction of “lifeline units” is most welcome as it will cushion vulnerable members of society by ensuring that they at least have lighting in their houses.
Zesa must be applauded for taking account of the plight of the poor by putting in place measures that ensure they at least have lighting and can keep themselves warm.
In view of this olive branch extended by the power utility, we implore users of electricity to complement this move as the country continues to seek a long-term solution to the ongoing power challenges.
