Zim power bill rockets 12 000%
02/03/2006 16:09  - (SA)  

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Johannesburg - Zimbabwe's monthly electricity import bill has shot up by about 12 000%, Harare's Herald newspaper reported on Thursday.

Its website quoted Energy and Power Development Minister Mike Nyambuya as saying this might force power utility Zesa Holdings to increase its tariffs to remain viable.

"The cost of importing power has increased from Z$5bn per month to Z$600bn, against total income of Z$340bn per month," Nyambuya said.

"This has been so because of the movement of the exchange rate from Z$26 000/US$ to the current Z$99 000."

Imported electricity represents about 32% of Zimbabwe's national requirements.

This state of affairs was not sustainable, the minister said at the inauguration of a new board for the power utility on Wednesday.

There was a need to come up with what he termed realistic tariffs, enabling the power utility to provide electricity efficiently and minimise power cuts.

Nyambuya said Zesa was losing heavily as a result of low-level rates it was charging against escalating inflation.

"Zesa is incurring a huge loss and our tariff levels are not sustainable. We want to repair and restore machinery at the Kariba and Hwange power stations. We also want to invest in the region. How do we do this without funds?"

The government had given Zesa Holdings the green light to adjust tariffs in line with rising inflation, Nyambuya said.

Last year, the government approved an interim tariff increase of 100% to keep the power utility afloat.

The minister said he expected the new Zesa board to expedite generation projects in response to a power deficit facing the Southern African Development Community region.

Energy experts say the region faces a major power shortfall by 2007 if no capacity expansion measures are put into place.

At present, Zesa generates a combined 1 440 megawatts at Kariba and Hwange power stations.

K ariba generates 750MW and Hwange 590MW, while small thermal power stations contribute 100MW to the national grid. Imports account for 650MW.

Zimbabwe imports 300MW from South Africa, 250MW from Mozambique and 100MW from the Democratic Republic of Congo.

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