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Tariffs will continue to rise in line with inflation
- ZETDC last month raised tariffs by 30%
- Zimbabwe will not guarantee unsustainable cheap tariffs
Zimbabwe’s Energy and Power Development Minister Zhemu Soda has said electricity tariff rates in the country would continue to be reviewed in line with the cost of electricity supply in the country. Soda stated that the country could no longer guarantee cheap electricity tariffs. He noted the rising inflation levels in the country. He added that the electricity tariffs would continue to be reviewed in line with inflation and exchange rate fluctuations until they reflect the true cost of electricity production.
Last month, the Zimbabwe Electricity Distribution Company (ZETDC) implemented a 30% power tariff increase for its customers. Minister Soda stated that ”In order for us to achieve what we are envisioning, that is to provide adequate power and sustainable electricity, there is a need for tariffs to be reviewed regularly”.
”It is also imperative that power be sold at cost-reflective tariffs, that way the producer is able to continue to offer and improve on the service delivery”, Soda added.
Zimbabwe, just like other African electricity markets is facing the rising cost of electricity production.