Breaking News

Zesa tariff increase approved

by Staff Reporter
02 January 2013 | 6547 Views
ZESA Holdings has won a minute 0,3 percent increase in average electricity tariffs with the Zimbabwe Energy Regulatory Authority approving an increase of US9,86c kilowatt per hour from US9,83c.

Zesa Holdings, through the Zimbabwe Electricity Transmission and Distribution Company, had applied for an average tariff increase of US9,94c kW/h.

The regulatory authority also reduced tariffs for consumers on the maximum demand category by about 20 percent.

These include mining, industrial, commercial and pumping works customers.

ZERA chief executive Engineer Gloria Magombo yesterday said in coming up with the new tariff structure, the regulatory authority considered consumer concerns requiring fair tariffs.

She said ZERA had also considered the need to improve on the production levels at power stations.

There was also a need to allow the power utility to access more electricity from regional suppliers, she said.

"The ZERA Board at its meeting of December 21, 2012 considered the ZETDC application for a weighted average tariff of US9,94c kW/h.

"The Board settled for US9,86c kW/h after considering many issues which also included the need to allow for prudently incurred expenditure and the need for higher levels of efficiencies in the provision of electricity," she said.

She said the approved tariffs would be enough to cover the power utility's operations and maintenance costs.

"The tariffs are enough to cover revenue requirements as applied by ZETDC including equipment and refurbishment.

"The tariff application review was made in terms of the gazetted rate of return pricing methodology which allows utilities to recover efficient cost of supply and enables them to recover a return on investment," Eng Magombo said.

She said ZERA had reduced tariffs for industrial customers.
"This is due to the recognition that capacity charges had to be adjusted for capacity shortfalls and encourage consumers to shift loads to off-peak," she said.

The approved tariff, Eng Magombo said, did not affect consumers with Special Pricing Agreements and Power Purchase Agreements approved by ZERA.

"In its quest to make electricity tariff more reflective on the efficiently incu-rred costs, ZERA has engaged an independent consultant to carry out a comprehensive cost of supply study whose results are expected by May this year.

"Further reviews on the tariff structure including the possibility to increase in the threshold of maximum demand customers from 300 kVA to 100 kVA and reintroduction of the fixed monthly charges will be covered as a part of the study.

"The new tariffs will be reviewed quarterly and if necessary, adjusted using the Tariff Indexation Formula.

"It is the ZERA Board's intention that subsequent to the cost of supply study, tariff reviews will be more long term to ensure transparency and predictability."

She said the approved tariffs compare favourably with those in the region.
"Any comparison of tariffs across the region requires that one looks at the sources from which the electricity is being supplied in each country which is often referred to as the energy mix," she said.

"Where there is dominance of the production of electricity from thermal sources, the costs are in most cases higher hence higher tariffs.

"This is the case with South Africa, Namibia and Zimbabwe."

She said where there is dominance of hyrdo generation; the costs are relatively lower like cases of Zambia and Mozambique.

"The tariffs will also differ because of particular country's pricing policy and tariff methodology, the levels of subsidies the Government provides in the sector, taxes and or surcharges which are added on the tariff," she said.

The Administrative Court recently nullified the charges Zesa Holdings had been charging consumers since September 2011.

The court gave Zesa three months to come up with a new structure.




This was after the Confederation of Zimbabwe Industries contested the new tariff on the basis that when it was approved, the ZERA board was not properly constituted as required by the law.

CZI, ZERA and the ZETDC concurred that the tariff was indeed invalid.

Zesa

Source: TH

Does Prophet Magaya's anointing oil work?

Yes
20%
No
73.33%
Spiritual matters
6.67%
30

Comments

News Updates

Email:

Latest News

Drama as man protests against ruling - MUTARE Civil Court was brought ...

by Tendai Gukutikwa | 31 January 2015 | 2039 Views

Man offers maintenance to silence ex-girlfriend - IN a bid to stop his...

by Answer Sithole | 31 January 2015 | 1721 Views

'Cannabis cures blindness, Your Worship' - IT was shocking, hilarious ...

by Tinashe Hazvide | 31 January 2015 | 1196 Views

Woman demands $750 from bus driver - A MUTARE woman shocked the courts...

by Tinashe Hazvide | 31 January 2015 | 1876 Views

Girl, 15, forced into marriage - THREE aunties who forced their under-...

by Lovemore Kadzura | 30 January 2015 | 2033 Views

Motorist swallows driver's licence - THERE was drama at a police roadb...

by Staff Reporter | 30 January 2015 | 2551 Views

Taxi driver wilfully infects girl with HIV - AN HIV-positive Rusape ta...

by Lovemore Kadzura | 30 January 2015 | 1803 Views

4-year-old cancer patient appeals for assistance

by Staff Reporter | 30 January 2015 | 1163 Views

'I'm not satisfied with one man'

by Liberty Dube | 30 January 2015 | 2832 Views

'Hubby impregnated girlfriend' - HIE, there readers. How are you all? ...

by Anne Ruthenburg Weddings | 30 January 2015 | 2296 Views

Mujuru to sue Grace Mugabe, claims Mutasa

by Staff Reporter | 30 January 2015 | 5200 Views

'Don't pin your hopes on SA,' Mphoko tells youths

by Staff reporter | 30 January 2015 | 3323 Views

Robert Mugabe: man of the people? - Africa's leaders have appointed Zi...

by Enjoli Liston | 30 January 2015 | 1884 Views

Don't blame squatters, says Tsvangirai - Opposition leader Morgan Tsva...

by Staff reporter | 30 January 2015 | 1492 Views

Utshontsha ingcekeza kamalukazana - KUDABA olusegudwini esigabeni sako...

by Ndumiso Sibanda lo Msilisi Dube | 30 January 2015 | 2512 Views

MDC-T Ruwa clean up programme on tomorrow - The MDC-T Goromonzi South ...

by Staff Reporter | 30 January 2015 | 1540 Views

'Half-baked' graduates - quantity without quality counts for nothing! ...

by Wilbert Mukori | 30 January 2015 | 1724 Views

Khupe angles for Tsvangirai's post - report - Daggers are drawn betwee...

by Staff reporter | 30 January 2015 | 3065 Views

Grace furious with Mugabe over alleged 'lover' Muchinguri - A whistle-...

by Staff Reporter | 30 January 2015 | 7980 Views

Namibia drags feet on Zimbabwe qualifications - TWENTY-EIGHT Namibian ...

by Theresia Tjihenuna | 30 January 2015 | 3146 Views

Mutasa on a mission to 'cleanse' Zanu-PF - Didymus Mutasa, the embattl...

by Ray Ndlovu I M&G | 30 January 2015 | 2946 Views

'Friends yes, imperialists no more,' says Mugabe - President Robert Mu...

by Staff reporter | 30 January 2015 | 1553 Views

BREAKING NEWS: Mugabe unanimously elected to lead Africa - President ...

by Staff reporter | 30 January 2015 | 4162 Views

Man bites wife's finger after being refused access to her phone - A ...

by Staff Reporter | 30 January 2015 | 1897 Views

Mphoko out of touch with reality - FEARS that Vice-President Phelekeze...

by Stewart Chabwinja | 30 January 2015 | 4695 Views

ZAPU to reconfigure the Youth Front - "We are revisiting our revolutio...

by Thulani Nkala | 30 January 2015 | 1785 Views

Mafikizolo and Zahara Zimbabwe bound - Entertainment Reporter After a ...

by Staff reporter | 30 January 2015 | 1530 Views

Woman stabs hubby over WhatsApp message - A 22-year-old Barbourfields ...

by Thandeka Moyo | 30 January 2015 | 4254 Views

Entertainment

Nama awards nominees - Full list - A lot has been said about the Natio...

by Staff reporter | 30 January 2015 | 969 Views

Munya Mataruse Joins Tuku on US Tour - Upcoming Pakare Paye Arts Centr...

by Entertainment Reporter | 30 January 2015 | 1086 Views

Mugabe, Mujuru at Harare Gallery

by A.A.V. Amasi | 28 January 2015 | 5576 Views

Prof Jonathan Moyo says 'Zimbabwe to meet digitisation deadline in Jun...

by Farirai Machivenyika | 27 January 2015 | 2414 Views

DJ stabbed by lover - A MATSHOBANE suburb disk jockey (29) got more t...

by Staff reporter | 27 January 2015 | 5047 Views

Bulawayo movie Qiniso out in February - THE much anticipated movie, Qi...

by Showbiz Reporter | 26 January 2015 | 2358 Views

Where is omasiganda music now?

by Fred Zindi | 26 January 2015 | 2506 Views

Ringo billed for pre-Valentines Bash in Bulawayo

by Bongani Ndlovu | 26 January 2015 | 3788 Views
iBlog

Rules Or Relationship

The dog does not need a lead to go for a walk. its owner can just speak a word and the dog responds. now, we are not comparing ourselves to dogs, we are comparing performance-based christian living to relationship-based christian living. big, big ... Read More
LindaDiokpa 30 December 2014 ago

The Zero-day Vulnerability Cve-2014-4114 Impacting All Versions Of Microsoft Windows

new microsoft windows zero-day vulnerability - cve-2014-4114on tuesday, october 14, 2014, isight partners - in close collaboration with microsoft - announced the discovery of a zero-day vulnerability impacting all supported versions of microsoft win... Read More
SecNews 16 October 2014 ago