Published: 22 February 2018

DEBT-RIDDEN Zimbabwe Electricity Supply Authority Holdings (ZESA) says it has not had a tariff increase in the past seven years, a situation it says has affected its capacity to adjust workers' salaries.

This has resulted in salary disputes with employees.

The National Energy Workers Union of Zimbabwe demonstrated against the power utility last week over failure to honour a 2012 collective bargaining agreement (CBA).

ZESA wrote to government in December last year lobbying for a tariff hike with effect from beginning of 2018 amid reports that the power authority was technically insolvent.

"The utility has not had a tariff increase for the past seven years and the last increase was in 2011, despite the significant increase in power import costs and consumables," ZESA in a statement.

The parastatal has sought a tariff increase in the last few years arguing that it was charging "a lower-than-cost tariff" at a time it was expected to carry out major infrastructure development projects. It  says the 9,86 cents per kilowatt hour (kWh) it charges does not allow it to break even.

ZESA's efforts for a tariff review from 9,86c/kWh to 14,64c/kWh were in 2016 blocked by government through the Zimbabwe Energy Regulatory Authority, which said it should seek ways of reducing its cost structure while also enhancing its debt collection mechanisms.

The company said it is amenable to have the tariff increase staggered between January and May 2018.

While ZESA acknowledges that it owes a substantial amount of money to workers emanating from the 2012 CBA, the pay increase can, however, only be implemented if the parastatal gets approval to effect a tariff hike.

"The 2012 CBA would require a tariff increase which we feel would place unnecessary burden on electricity consumers," ZESA said.

ZESA reportedly owes its local and international suppliers close to $1 billion. 
- fingaz

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