Zimbabweans will soon pay substantially more in electricity tariffs as the southern African country continues to seek ways of alleviating its crippling power shortages.
Finance Minister Mthuli Ncube, in his 2019 mid-term budget review statement presented on Thursday, proposed to increase electricity tariffs for domestic consumers to 27cents/kWh (Zimbabwean dollars) from the current 9,86cents/kWh.
A first for Zim
This, minister Mthuli said, amounts to approximately US3 cents/kWh which is subsidised. The agriculture sector will also pay US 3 cents/kWh.
In a first for Zimbabwe, there will be a different tariff for different sectors of the economy.
The electricity tariff for non-exporting businesses is set to be increased to 45 cents/kWh, approximately US 5 cents/kWh. Exporters such as ferrochrome smelters and other miners will continue to pay US6,7 cents/kWh and US9,86 cents/kWh respectively.
Minister Ncube said this will ensure that resources are ring-fenced in a special account solely for purposes of importing electricity. He also proposed that Zesa be allowed to bill all other exporters and foreign currency earners in foreign currency, and similarly ensure that these resources be ring-fenced in a special account.
COMMENTS
Who’s doing the maths? For domestic consumers now paying 27c, the increase from 9.86c is 273.83%.
Zimbabweans and their newspaper reporters are not good at sums. Even though the United nations says ZW has the best educated people on the continent !!
All this rigging of the currences swopping between RTGS and USD is a complete joke. Now I see ZW is not going to release inflation figures until 2020.
Professor Steve Hanke says ZW inflation is 558% today
Prof. Steve Hanke
With @MthuliNcube’s announcement that the gov’t will stop publishing inflation stats, I am the ONLY #source for accurate stats on #Zimbabwe’s inflation rate. Today, Zim’s annual #inflation rate is 558%/yr. Follow @steve_hanke to receive #daily inflation updates on Zim.