GOVERNMENT has approved an electricity tariff increase to
assist Zesa to mobilise more resources to cover the supply gap but maintained
subsidised charges for domestic and agricultural consumers.
Finance and Economic Development Minister Professor Mthuli
Ncube said this yesterday while delivering his 2019 Mid-Year Budget Review
statement in Parliament under the theme: “Building a Strong Foundation for
Future Prosperity”.
He said the short term solution to the country’s power
crisis lies on importation from regional producers to cover the deficit while
Government works on capacitating Zesa to improve on its generation capacity.
The country is experiencing severe power shortages owing to
drastic decrease in water levels at the main Kariba Hydro Power Station and
ageing equipment on thermal stations, which has seen consumers going for over
10 hours without electricity for almost three months.
Government is in negotiations with South Africa’s utility
company Eskom on a deal to import 400MW.
“In the short term, power supply deficit can only be met
through power imports and hence it is urgent that Government capacitates Zesa
to mobilise requisite resources through appropriate and cost recovery tariffs
implemented through a differentiated scale,” said Prof Ncube.
“Therefore, Government has approved the following
electricity tariff measures for immediate implementation: the electricity
tariff for non-exporting businesses be increased from an average of
ZWL9.86c/kWh to an average of ZWL45c/kWh (approximately USc5/kWh), the
electricity tariff for domestic consumers be increased from an average of
ZWL9.86c/kWh to an average of ZWL27c/kWh (approximately USc3/kWh), which is
subsidised.
“The electricity tariff for agriculture consumers be
increased from an average of ZWL9.86c/kWh to an average of ZWL27c/kWh
(approximately USc3/kWh), which is subsidised.”
Prof Ncube said the tariff for ferrochrome smelters and
other miners will be maintained at US$0.067/kWh and US$0.0986/kWh respectively
with the foreign currency revenues obtained used for importing power. He said
Zesa has been given the green light to charge other exporters and foreign
currency earners in foreign currency and ensure that the resources were
ring-fenced in a special account solely for purposes of importing electricity.
Prof Ncube said in view of the imminent changes the
Ministry of Energy and Power Development and the Zimbabwe Energy Regulatory
Authority (Zera) will make pronouncements fine tuning the changes.
He said Zesa should roll out energy saving mechanisms such
as pre-paid meters and speeding up structural reform at the parastatal. While
the power utility implements energy saving efficiencies, Government will
continue to work on medium and long term solutions, which include expanding
power generation at various power stations.
Prof Ncube said Treasury has also struck off duty on
lithium-ion soar batteries to promote usage of alternative green energy.
“Honourable Members would be aware that Government, in
2010, provided for duty free importation of solar panels and other solar-
related products, in support of the energy policy thrust on use of alternative,
clean and renewable energy sources.
“In order to promote investment in solar energy, thereby
reducing power demand on the already constrained national grid, I propose to
remove duty on lithium-ion solar batteries,” said Prof Ncube. Herald
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