Zimbabwe Announces a Whopping 50% Electricity Tariff Hike

  • Last week Zimbabwe announced that they will increased electricity tariffs by 50% with effect from 23rd September 2020.
  • 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.

Related news: ZESA originally wanted to hike tariffs by 30%

The fixed monthly charge now stands at $10.86 per kWh. Mining, industrial, commercial and pumping works will now attract a fixed monthly charge of $66.44 per kWh.

“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.

Related news: Zimbabwe settles USD30 million debt with Eskom

Author: Bryan Groenendaal

Source: ZETDC

 

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