BOX
2146 LAPH HOUSE TEL : 09
61196
BULAWAYO 8TH FLOOR SUITE 803 FAX : 09
888211
ZIMBABWE 8TH
AVE, BTWN J.Moyo & FIFE ST CELL
: 0772 516 729 / 0775 233 581 E-MAIL: progressiveresidents@gmail.com/
Bulawayo Progressive Residents Association (BPRA)
Press Release
Date: 6 February 2014
Contact:
Emmanuel Ndlovu
Advocacy
and Programmes Manager
0775
233 581
Proposed ZETDC Tariff Increase Unacceptable
The Bulawayo
Progressive Residents Association (BPRA) believes that the request by the
Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to increase
tariffs by 16 percent is unacceptable and should be rejected by the Zimbabwe
Energy Regulatory Authority (ZERA) and Zimbabweans at large. ZETDC has formally
applied for a tariff increase of 16 percent to ZERA in line with the
Electricity Act citing the fact that there has only been one significant tariff
increase since dollarization in 2009 while the current tariff rates had become
untenable for its operations. The company argues that a marginal increase would
be detrimental to its operations in the long term and has highlighted that it
suffered losses from 2009 to 2013.
BPRA however believes
that a tariff increase of 16 percent is tantamount to holding electricity consumers
at ransom in light of the country’s economic climate which is characterised by
high unemployment and poor remuneration of civil servants who constitute a
large proportion of the working population. As such, most people would not be
able to cope with a tariff increase as they are constrained by a harsh economic
environment. In cities like Bulawayo this has been worsened by rapid
deindustrialisation and low levels of development. It is also BPRA’s reasoned
opinion that an electricity tariff increase is imprudent as it would lead to
magnification of inequalities since many areas now utilise prepaid meters
meaning that the rich will be able to use as much electricity as they want
while the poor will be subject to long periods without electricity.
BPRA thus
calls upon ZERA and Zimbabweans at large to reject the proposal by ZETDC to
increase tariffs. It makes no sense to the association that electricity charges
be increased by 16 percent when generally salaries have remained static while
inflation is only at 4,6 percent. The association instead urges the power
utility to speed up the process of installing prepaid electricity meters as use
of the technology could help the parastatal increase its revenue flows thus minimizing
its monetary challenges.
Bulawayo
residents made it clear that the move to increase tariffs was not welcome in
the city at a consultative meeting with ZETDC and ZERA last Friday (31 January
2013). ZERA has been conducting meetings around the country to gather the views
of stakeholders on their take on the proposed tariff hike before it makes a
decision on the matter.
Signed
……………………………………………..
BPRA Advocacy and
Programmes Manager
Emmanuel Ndlovu
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