ZESA new 19% tariff hikes increases cost of living

Staff Wrtier

Zimbabwe Electricity Supply Authority (ZESA) has approved a 19,2% power tariff increase in line with economic adjustments which have seen exchange rates and inflationary adjustments.

The new set of tarrifs come into effect on Sunday 1 March 2020 against a background where power supplies have slightly improved.

According to a notice released Thursday, the latest hikes are in line with the greenlight granted on October 2 2019, giving permission to operationalise the monthly tariff indexation formula, which takes into account the shifts in the internal economic environment like exchange rates and inflation, for changes above 10%.

“As a result,the first 50 units of electricity for the month, which used to cost $20,50 will now cost $24,50 while the 200 units of electricity, which were being sold for $157, will now cost $186,50.After 200 units have been consumed, all other units will now go for a punitive$4,61 per kilowatt hour (kWh) as opposed to $3,87 per kWh charged before,” the notice said.

Effectively, the new tarrifs means that the first 50 units have seen 41 cents increase per kWh to $0,49 per kWh while the 150 units which used to cost $136,50 will now cost $162.
Overall, the increase in electricity tariffs rose from $0,91 per kWh to$1,08 per kWh.
Households with prepaid meters will pay $2,15 for the first 50 kWh while paying $2,15 from 51 kWh to 200 kWh.

The Zimbabwe Energy Regulatory Authority in October last year approved a 320% electricity tariff increase to 162,16 cents per kWh to help ZESA improve power supply.

The move comes at a time when the general populace have endured a prolonged period of earning inflation eroded salaries which they say cannot match up the ever rising costs of living.

Most households have since resorted to electricity self-rationing where they disconnect themselves for some period of the day to try and minimize the cost.
Others have disconnect electricity stoves and have resorted to the use of gas powered stoves and fridges.

More on Humanitarian Post:

Leave a Reply

Back to top button