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Zesa pricing report submitted

JOHANNESBURG-based energy consultancy firm, Sad-elec, has submitted its report on the energy pricing survey it carried out on the Zimbabwe Electricity Supply Authority (Zesa) to the government.

, Arial, Helvetica, sans-serif”>The study could determine whether there would be an electricity tariff increase or a reduction.

A senior consultant from Sad-elec, Stefan Regardh, came into the country on Monday and he is expected to leave for Johannesburg today.

Zesa’s general manager for corporate affairs Obert Nyatanga this week confirmed the arrival of Regardh and the handing over of the report to government.

“We have the report and Regardh is here,” he said. “We have presented their findings to cabinet. We are going to be meeting cabinet ministers again tomorrow (Wednesday). However, the best person to talk to is the permanent secretary in the Ministry of Energy.”

The objective of the energy pricing study is to develop a regulatory framework necessary for economic regulation of the country’s electricity industry.

In January Zesa introduced a 400% tariff hike but was forced to reduce the increases after receiving stiff resistance from consumers.

The complaints by consumers eventually forced Zesa to reduce their tariff by between 29% and 45%.

In a statement on the attaining of the contract from Zesa, Sad-elec said the new tariffs were needed to enable the cash-strapped parastatal to secure new investors.

Sad-elec said the pricing study was being done to develop a framework for economic regulation of the electricity industry, which would cover power generation, transmission and distribution.

“Based on this framework we will define principles for the necessary codes, draft tariff orders for the economic regulation of the industry and undertakes an energy pricing study,” the company said.

“With the current inflationary situation in Zimbabwe, the implementation of new electricity tariff orders is required as a matter of urgency to secure the financial viability of Zesa and to attract private sector investment in the generation sector.”

The firm said in addition, the project further aims to develop principles for the licensing framework for licensees as well as codes for governing wholesale energy trading and network access agreements.

“These steps are necessary to support the overall restructuring initiatives undertaken by the government,” the company said.

Some of the Sad-elec clients include government departments in South Africa, Swaziland, Lesotho, Mozambique, the Southern African Development Community secretariat, and Rio Tinto Zimbabwe Ltd.

Permanent secretary in the Ministry of Energy Justin Mupamhanga said although they had received the report, it would take time to make a decision because of government protocol.

“We have received the report but all necessary government protocol will have to be followed, then a decision will be made on what to do next.”

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