Zesa issues ultimatum to defaulters

Zesa..jpg

Zesa headquarters along Samora Machel Avenue in Harare.

POWER utility Zesa has issued a six-month deadline to defaulting commercial consumers to settle their bills as part of efforts to recover a cumulative US$1,1 billion it is owed by electricity users, businessdigest has learnt.

Tinashe Kairiza

By December last year, the state enterprise, which is technically insolvent, registered accumulative losses of US$500 million.

Zesa’s recent application for a tariff increase from US9,8 cents per kilowatt hour (Kwh) to US15 cents per kilowatt hour (Kwh) was shot down by government. The troubled company owes domestic and international suppliers about US$1 billion.

In a statement, the power utility said it would take legal action to recover the staggering debt owed by defaulting consumers.

“In the interest of service provision, the power utility has stepped up credit control measures in order to recover the debt owed in sectors that include: commercial, mining, agriculture and domestic,” read part of the statement by the utility’s subsidiary, the Zimbabwe Electricity Transmission and Distribution Company(ZETDC).

“All defaulting business consumers in the commercial, mining, industrial and farming sectors are required to make payment plans in order to clear their bills within six months to avoid the inconvenience of service being withdrawn and litigation.”

In March last year, Zesa managed to recoup US$35 million it was owed after it disconnected over 37 000 defaulting consumers. Industrial power consumers have fiercely rejected proposals by Zesa to increase tariffs, citing that an increase would derail efforts to expand the country’s shrinking manufacturing base.

The cost of power in Zimbabwe, at around US 10 cents (Kwh), is among the highest in Africa with Zambia and Ethiopia charging US 5 cents (Kwh) and US 6 cents (Kwh) respectively.

One thought on “Zesa issues ultimatum to defaulters”

  1. Ginimbistimbi says:

    ZESA has one problem. It is not run like a business. Here in Mt Darwin I have seen ZESA workers workers sitting idly paZESA ipapo after reporting a fault. mamwe mafault acho anenge achingoda kuswitcher magetsi back on chete but zvinotora 72 hrs for areas like mukumbura mavhuradonha Marymount nechesa to get a simple problem fixed. If you ask them hanzi tozoita mangwana . what! you work 24 hours but vanhu venight shift vanetenge vakarara kumba. no work is done at night even kusumudza breaker zvako it has to wait till morning. in the meantime the company will be losing money coz hapana arikushandisa magetsi so consumers will use less electricity per month which means less revenue for ZESA saka ngavarwge kumboti hatina mari its their own doing. Excuse after excuse mapoles akadonha hanzi heee hatina mota yekutakura mapoles .
    Then when I am in Harare I stay in Chisipite or Damofalls its the same problems. They need to shape up before they start pointing fingers at defaulters . Nyangwe vakapihwa 1 billion dollars vasina kuchinja mashandiro hapana improvement inoitika. They need to stop haemorrhaging cash while they sit idly orvsleep instead of working.

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