ZESA Hikes Tariffs By 50%

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By Alois Vinga

ZIMBABWE Electricity Supply Authority (ZESA) has increased electricity tariffs by 50% with effect from September 23, 2020, a move that will see a rise in most prices, especially basic commodities.

In a statement Thursday, a ZESA subsidiary, the Zimbabwe Electricity and Distribution Company (ZETDC) announced the new tariffs are in line with regulatory approvals made in October 2019.

“This is in accordance with the tariff award of 2 October 2019, which approved the implementation of monthly tariff indexation formula for changes above 10%. Below are the tariffs in ZWL that will be applicable with immediate effect,” ZETDC said in a statement.

Going forward the first 50 kWh will be sold at $10.86 while the second band which is commonly purchased by consumers from 51 to 200 kWh will now be sold at $0.74 per unit.

The third band which begins from 201 to 300 kWh will be sold at $1.62 per unit and any purchases thereafter will be sold at $6.92 per unit.

The fixed monthly charge now stands at $10.86 while for mining, industrial, commercial and pumping works will now attract a fixed monthly charge of $66.44 and energy per kWh now stands at $357.

“The rates are exclusive of the 6% Rural Electrification Levy and 14.5% VAT. In terms of Statutory Instrument 168 of 2012, electricity charges for domestic customers are zero-rated for VAT and in terms of Statutory Instrument 215 of 2005, fixed charges on commercial and domestic electricity are zero-rated for VAT,” the ZETDC said.