Power utility, ZESA Holdings said a ferrochrome preferential tariff introduced by Government is hitting the utility’s financial position negatively.
Several ferrochrome companies have been suggesting a commodity price based tariff which miners believe will catapult their sustainability and profitability.
ZESA Holdings has been considering hiking power tariffs, saying the decision by the Zimbabwe Energy Regulatory Authority to refuse an increase ought to be revisited.
The while utility while making a presentation at the Chamber of Mines Zimbabwe Conference recently said some miners especially in the ferrochrome sector are currently enjoying a preferential tariff which is now having negative impact to the utility’s balance sheet.
“The preferential tariff on ferrochrome producers has had a massive impact on the cash flow position of the utility. As we speask some players are benefitting from theis tarriff awarded by Government without considering the views of the utility.
“It is our hope that the legislature will look at that and put into consideration and put guidelines on looking at these issues especially when the utility is in a siatuation where it is not receiving subsidies from Government,” said ZESA Holdings.
Energy and Power Development Permanent Secretary Patson Mbiri is on record saying the 4 cents tariff which miners are advocating for is not feasible and adopting a commodity linked pricing structure will leave Zesa Holdings with an egg on its face.