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NewsDay

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Zesa’s poor, obsolete equipment costing the nation

Business
ZIMBABWE is operating with a power supply deficit of 400 megawatts per day and the gap is being filled by imports and load-shedding.

ZIMBABWE is operating with a power supply deficit of 400 megawatts (MW) per day and the gap is being filled by imports and load-shedding, a senior official at the Zimbabwe Energy Regulatory Authority (Zera) has revealed.

BY OUR STAFF

Zera chief executive officer Gloria Magombo told members of the Mines and Energy Parliamentary Committee yesterday her organisation had so far licensed 19 independent power producers (IPPs) to address the power deficit.

“We still have a serious power supply deficit, we are operating at 400 megawatts supply deficit per day, which is then met through imports from imports from HCB of Mozambique and load-shedding,” Magombo told parliamentarians.

Magombo said the 19 IPPs had the capacity to generate 5 322MW and they were at various stages of development.

She, however, said the IPPs faced challenges of lack of access to capital as well as perceived country risk as they were considered as long-term projects.

Magombo said Zesa Holdings had poor and obsolete infrastructure and equipment which results in frequent supply disruptions.

Magombo said the electricity regulator has not received an application for a tariff hike.

“We don’t anticipate tariff hike this year. We have not received the application for a tariff hike,” said Magombo. Zesa was owed close to $1 billion by customers to date.

The figure has been increasing despite the slashing of the electricity debt that customers owed Zesa overtime.

This year the power utility increased its power cuts on debtors and increased load-shedding outside the publicised schedule due to frequent breakdowns at Hwange Power Station.