ZESA Holdings’ power distribution arm, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) recently announced new electricity tariffs which came into effect on 15 May 2022.
In a notice, ZETDC said the Zimbabwe Energy Regulatory Authority (ZERA) had approved a tariff adjustment in order to restore the value of the tariff to a level of USc10.63/kWh which was approved in 2019. We present a chart of the new tariffs below:
Tariff Band Price/kWh Total kWh Total Per Band (ZWLS) 1 – 50 kWh 8.02 50 401.21 51 – 100 kWh 16.08 50 804.01 101 – 200 kWh 28.17 100 2,817.48 201 – 300 kWh 40.22 100 4,021.64 301 – 400 kWh 46.22 100 4,621.60 401 kWh and above 48.24
Cumulative Total kWh Total Cost (ZWL$) 1st purchase of – 50 401.21 1st purchase of – 100 1,205.22 1st purchase of – 200 4,022.70 1st purchase of – 300 8,044.34 1st purchase of – 400 12,665.94 The tariffs above include 6% Rural Electrification Levy.
Last month, ZESA Holdings executive chairman, Sydney Gata, warned of imminent debilitating power cuts due to the non-cost reflective electricity tariffs which threatened the power utility’s viability.
Gata said ZESA is importing electricity at a cost of between US8c and US9c per unit while the cost of producing locally is US9.5c.
ZESA has been supplying power to households at far less than the cost of importing and producing, that is, US6c per unit.