Zesa Holdings Zimbabwe is negotiations with EDM of Mozambique for lower utility tarrif

Zesa Holdings negotiations with EDM of Mozambique have taken longer than expected as the power utility seeks to secure a tariff that is not onerous to its finances.Secretary for Energy, Partison Mbiriri said the power utility will be guided by what obtains in the region in terms of the tariff rate although it has emerged EDM had bargained for a tariff of about 15c kWh.

“Negotiations are still going on, there is no outcome yet on what the tariff will be. Without knowledge on what the tariff will be, it will be onerous for a tariff of that magnitude to be carried by consumers, so negotiations are continuing. Rates of between 13c and 15c are a little on the high side,” he said.

“About 40MW is what we expect to get from EDM; there is no outcome yet,” he added.

Zimbabwe has resorted to importing power from the region to bridge its deficit, with current generation at about 1 000MW against peak period demand of 2 200MW.

“Normally, we are guided by what obtains within the region, as such any tariff in the region of 13c/kWh would be a bit on the high side,” Mr Mbiriri said yesterday.

The discussion for imports from Mozambique come at a time when Zesa has submitted proposals to Zimbabwe Energy Regulatory Authority for a tariff hike.

Zesa Holdings negotiations with EDM of Mozambique have taken longer than expected as the power

utility seeks to secure a tariff that is not onerous to its finances.Secretary for Energy, Partison Mbiriri said the power utility will be guided by what obtains in the region in terms of the tariff rate although it has emerged EDM had bargained for a tariff of about 15c kWh.

“Negotiations are still going on, there is no outcome yet on what the tariff will be. Without knowledge on what the tariff will be, it will be onerous for a tariff of that magnitude to be carried by consumers, so negotiations are continuing. Rates of between 13c and 15c are a little on the high side,” he said.

“About 40MW is what we expect to get from EDM; there is no outcome yet,” he added.

Zimbabwe has resorted to importing power from the region to bridge its deficit, with current generation at about 1 000MW against peak period demand of 2 200MW.

“Normally, we are guided by what obtains within the region, as such any tariff in the region of 13c/kWh would be a bit on the high side,” Mr Mbiriri said yesterday.

The discussion for imports from Mozambique come at a time when Zesa has submitted proposals to Zimbabwe Energy Regulatory Authority for a tariff hike.

source: all africa

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