The Sunday Mail
Lincoln Towindo
Electricity tariffs are likely to increase by February 29, 2016 — the deadline the Zimbabwe Energy Regulatory Authority has given itself to approve new charges.
Zera is also wrapping up modalities to ban energy inefficient household equipment come March.
In 2015, Zesa Holdings sought the Authority’s approval to increase tariffs from USc9/kWh to USc14/kWh, a proposal tailored to cushion the parastatal against massive losses occasioned by emergency power imports.
Zesa has spent more than US$236 million on electricity from Eskom (South Africa) at USc13/kWh but selling it at USc9/kWh locally.
Zimbabwe is importing power from South Africa (300MW) and Mozambique (50MW) following reduced production at Kariba Hydro Power Station induced by low water levels.
Zera has been consulting consumers and Government, and has resolved to make a determination this month.
There are indications the new tariff will be USc12/kWh. South Africa and Zambia charge USc8/kWh and USc10,35/kWh respectively.
Responding to inquiries by The Sunday Mail last week, Zera acting CEO Engineer Gloria Magombo said, “Zera expects to make a determination on the required electricity tariff increase by end of February 2016.”
Consumer Council of Zimbabwe deputy executive director Mrs Rosemary Mpofu said: “Customers should choose between using the costly power from Zesa or alternatives like solar and gas.
“We have always advocated alternatives in the face of rising costs. However, seeing that Zesa is the main source of energy, they need to ensure every customer is on pre-paid metering so that they can manage their consumption.”
Economic analyst Mr Kingstone Kanyile weighed in: “Electricity forms part of the cost of production. If tariffs increase from 9c/kWh to 12c/kWh, we are likely to have a 33,3 percent increase in the cost of production.
“This will have an inflationary effect on the economy as manufacturers and service providers attempt to adjust. On the flipside, if manufacturers are to raise their prices indiscriminately, we will witness a situation where consumers will prefer cheaper imports.”
Eng Magombo said energy inefficient conventional light bulbs will be banned before March 2016 is out.
According to Zera, replacing five million incandescent light bulbs will save Zimbabwe over 300MW at any given time, enough to power the country’s second-largest city, Bulawayo.
Energy-saving light bulbs use 80 percent less electricity, lasting more than six times longer than ordinary filament lamps.
Under the Minimum Energy Performance Standards Regulations, domestic and industrial users will be required to use energy-saving alternatives like compact fluorescent lamps and light-emitting diode (LED) bulbs.
MEPS is a performance requirement specification for electrical devices like stoves, geysers, dishwashers, washing machines and pool pumps.
“These regulations are currently at the Ministry of Energy and Power Development (as per the Government promulgation process) and are expected to become a statutory instrument during the first quarter of 2016,” said Eng Magombo.
“Importers of lighting products will be required to register with Zera in terms of the regulations. Zera inspectors shall, from time to time, perform random checks on premises of importers, wholesalers, retailers, consulting engineers and contractors/installers of lighting products for compliance to the MEPS regulations.
“In addition, Government signed a consignment-based conformity (CBCA) contract with a French global company, Bureau Veritas which has an independent and accredited testing laboratory.”
Bureau Veritas provides pre-shipment services of listed products in the country of export, and conformity certificates are issued only if the products tally with European and International standards and regulations.
The Zimbabwe Revenue Authority will demand LED gadget importers to produce such certificates for their product to be allowed into the country.
