- Zimbabwean Government to adopt a Cost-Reflective Tariff
- ZESA to implement new tariff in 2022
The Zimbabwean Government has stated that it would adopt a Cost-Reflective Tariff (CRT) in 2022 to enable the Electricity Supply Authority (ZESA) to sustain its operations. ZESA had previously raised concerns on the lack of a CRT which, according to the utility, was cripply its operations. ZESA generates at least 90% of electricity in the country.
In his 2022 National Budget presentation, the development, the Finance and Economic Development Minister, Prof. Mthuli Ncube, said, “ZESA requires a tariff level that provides for maintenance of existing infrastructure, as well as Government’s in new capacity,”
“While efforts are underway to improve on governance, the Government’s thrust is to achieve a cost recovery tariff in 2022, guided by the cost-of-service study (CoSS) findings by the World Bank. This is also in line with Cabinet’s decision to streamline subsidies.” Ncube added.
The Executive Chairman ZESA, Dr Sydney Gata, lamented the impact of poor tariffs on the operations of the utility, saying, “In addition to ageing infrastructure, the obtaining electricity shortages in the country is being caused by a combination of factors which include non-cost reflective tariff, high debtors book, and liquidity challenges,”