NEWS

Energy and Power Development Minister, Zhemu Soda, says Zimbabwe's power situation remains "fragile" in the absence of an economic tariff regime, which continues pushing up "unproductive" demand and reckless use of electricity.

"The tariff has been severely eroded and what we now see is the rising demand of unproductive electricity especially by domestic customers," Soda told Business Weekly. "Until there is restoration of a viable tariff, the situation will remain fragile."

Electricity has become the cheapest energy for households over other sources such as gas, with an average household spending as little as US$10 for electricity per month.

The last power price review was in January 2022 when the Zimbabwe Energy Regulatory Authority (ZERA) increased electricity tariffs by 12,3 percent.

Families on pre-paid meters are buying 200 units per month for $1 265,11 (US$5 on the parallel market or US$9 at official rate) including the 6 percent rural electrification levy.

There are five bands of discounted tariffs before the full $14,31 a unit comes into effect on purchases over 400 units. The first 50 units cost $2,38 each, before the rural levy.

The 50 units are considered the bare minimum that a family needs for essential purposes.Consumers on post-paid meters pay similar charges plus $35,68 monthly fixed charge.The fixed charge covers the extra administration costs.