THE Confederation of Zimbabwe Industries (CZI) has opposed the proposal by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to increase electricity tariffs by 5%, saying it will erode competitiveness of the sector.
By Tarisai Mandizha Business Reporter
CZI president Charles Msipa said the industrial body last month submitted a position paper opposing the move to increase electricity charges to the Zimbabwe Energy Regulatory Authority (Zera).
“We are vigorously opposing any electricity tariff increase, as this will undermine what has remained competitive of our industry and we have made a submission to Zera,” Msipa said.
“Any further increase will further erode competitiveness because already the tariffs are fairly high.”
Zera last month conducted public consultations to determine the 2014 electricity tariff in response to an application by ZETDC for a 5% increase and the industry was still waiting for the response.
ZETDC applied to increase the average tariff by 5% from the current 9,86c per kilowatt hour to 10,36c per kilowatt hour.
A tariff of 9,83c/kWh was awarded in 2009, but was reversed and replaced by a 7,53c/kWh in February 2009. There was no tariff hike in 2010 while a 9,83c/kWh raise was approved for 2011.
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The current local power generation stands at 829 megawatts as of February 26 2014 against peak demand of 2 200MW.
In his 2014 National Budget statement, Finance minister Patrick Chinamasa said electricity generation was projected to grow by 4,5% this year prompted by the rehabilitation project at Hwange and small power stations.
“In 2014, electricity generation is projected to grow further by 4,5%, spurred on by the rehabilitation project at Hwange and small power stations.
“This will also be supported by improved revenue collection from the on-going programme of installation of prepaid meters,” Chinamasa said.
