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ZESA price hike explained
Upenyu Makoni-Muchemwa,
September 09, 2011

ZESA Holdings Group Stakeholder Relations Manager, Mr Fullard Gwasira clarified the new electricity tariffs In a telephone interview. He said that the 31% increase in tariff was not an increase in the overall charge to ZESA customers and the new tariff is structured as follows:

  • The first 50 kWh had increased to 2.35c
  • 51kWh to 300kWh will be charged at 11c
  • Any usage over 300kWh will be charged at 15.c

Mr Gwasira said that with the new tariff they expected the average customer bill to be charged at 9.34c/ kWh. Since ZESA has removed the fixed monthly charge, this will translate to a marked reduction in charges to the customer, as long as they remain within expected usage parameters.

ZESA has changed its tariff scheme because the company is unable to sustain its operations. In the period 2009 to present the commodity prices of water, diesel and coal, all of which are required to generate power increased, but ZESA was not been able to raise its tariffs in order to compensate. Electricity in Zimbabwe was subsidised by the government through the Reserve Bank of Zimbabwe, however, since dollarization, the RBZ has been unable to support ZESA operations leading the power supplier to operate at sub-economic levels. Other factors affecting electricity tariffs include the strengthening of the Rand against the US Dollar, as ZESA purchases power from South Africa and Mozambique, both countries are members of the Rand monetary Union. Further there had been no inflation adjustments to the price of electricity.

Mr Gwasira went on to say that on the 1st January 2009 ZESA had written off customer bills that were unpaid prior to this date.

View the tariff schedule here

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