Zesa Holdings’ automatic hike of 19,02 percent for all tariffs from Sunday is calculated from a formula that ensures continuation of imports and operation of its stations.

Without the formula, set in October last year when the regulator, the Zimbabwe Energy Regulatory Authority (ZERA), went through actual costs when setting the initial tariff, consumers would find themselves even longer in the dark each day.

In a statement yesterday, the acting managing director of Zesa’s distribution arm, Engineer Ralph Katsande, said the tariff adjustment was in accordance with the Tariff Award of October 2 last year, which approved the implementation of a monthly tariff indexation formula which takes into account the movement of macro-economic fundamentals such as the exchange rate and inflation.
However, consumer subsidies remain.

The larger subsidy is on the first 50 kilowatt hours each month, the cost of which rise from 41c/kWh to 49c/kWh. The new price means these first 50kWh now cost $24.50.

The next 150kWh rise in price from 91c a unit to $1,08 a unit, giving a total for a month for this band of $162.

The two subsidies are worked on the basis that a careful family can cope on 200kWh in a month and can survive on the basic 50kWh.

Buying the full 200kWh of subsidised electricity will now cost just under $198, including the 6 percent rural levy, up from the $167 of the last five months.

After the subsidy runs out, from 201kWh the tariff rises to $4,61c/kWh from $3,87c/kWh.

Zesa is relying largely on thermal power from Hwange and imports from South Africa and Mozambique.

Kariba South is generating well below capacity because of low water flows into Lake Kariba.-state media