Power utility to sell debt

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ZESA Holdings’ subsidiary, the Zimbabwe Electricity Transmission Distribution Company (Zetdc), says it plans to trade off its debt to banks as a way of recovering close to a billion dollars it is owed by customers.

BY VICTORIA MTOMBA

Addressing members of the Parliamentary Portfolio Committee on Mines and Energy, Zetdc managing director Julian Chinembiri said the company was owed about $1 billion by customers, adding that various creditors owed the power utility $374 million, with the bulk of it being legacy debts.

“It is an idea that we are still pursuing, that banks can buy our debt and we do a discount on the amount and the banks get the actual amount from the customers. The difference is we will get the debt at once,” Chinembiri said.

He, however, said the amount of money that would be sold off to the banks had not yet been agreed on.

Zetdc was owed over $300 million by domestic customers, public lighting $27 million, mining and industries $244 million, while commercial and agriculture owe the utility $351 million and $75 million respectively.

Zetdc owes $132 million to internal institutions while its external debt is $169 million and $72 million was interest.

The country’s maximum demand for power was 1 950 megawatts (MW), but 1 256MW was being generated leaving a deficit of 600MW.

Chinembiri said the power deficit was being managed through load-shedding.

He said the six recently-commissioned independent power producers were adding 26MW to the national grid.

Chinembiri said the country was exporting 80MW to Nampower of Namibia while it was getting 50MW on a firm basis from Hydro Cahora Bassa on a upfront payment plan. He said since the country adopted the prepaid metering system, the company had saved 103MW of power to date.

He added that only 87 537 points in Mbare, Highfield, Mufakose, Kambuzuma, Mabvuku and Epworth were still on post-paid system.

9 COMMENTS

  1. Now,compare this news article with the Herald headline which is screaming:’Zesa dishes out $10m free electricity annually’. This headline is meant to create an acrimonious relationship between Zesa workers,management and the public. That headline is an outright lie because for the most part,the allowance is monitised on the electricity a worker actually consumes,and every worker consumes far less than what they are entitled for a single household point of supply. You want to find an excuse to recall and stop the paltry ex-gratia sums being given to workers in lieu of their 2012 salary increament.You want workers to strike because of your lies.What does the Herald hope to achieve ?

    • 1. Who in their correct mindset sell its debtors to the bank , given that this may cause civil unrest in the country
      2. They also forgot to mention that Glen View , Glen Norah and Budiriro still has residence on post paid.
      3. They should also mention that there are no new meters at ZESA (at least that is what we are being told) and we have to plan on forking the $200 that is needed to corruptly get a prepaid meter.

      Pafungeiwo

  2. ZESA should install prepaid meters for everyone. Those on post-paid meters are still being corruptly harassed with disconnections as if they are the only ones who owe ZESA

  3. ZESA should install prepaid meters for everyone. Those on post-paid meters are being corruptly harassed with disconnections as if they are the only ones who owe ZESA.

  4. who would be foolish enough to buy that debt even at a heavily discounted rate considering that most of that debt is held by top government officials and broke state enterprises.

    • If all users have pre-paid meters and deductions are being made every time you recharge, why would you need to sell the debt?. It will be paid within a year at most!!

  5. This company must come up with correct amount because most of these debts are from estimates and you may find the actual debt is a third of this because ZETDC gained unfairly from estimantes especially to those who got prepaid meters they are still paying for estimates which were very wrong. I stay with my wife and 2 kids, most of the time Monday to Friday away but we always got estimates of 100 or more usd as our bill but now with prepaid I rarely use 20 usd a month and I did not scale down on what I use. I am still paying for those estimates.

  6. Meters in high density surburbs must be put where consumers don’t access because vane mbiri yekuita bridge those meters, go to Old Mabvuku and check if ZESA has a loss control department almost all house holds have bridged their breakers.

  7. In an country where leaders are thieves why not steal also….we are all using FREE electricity. Go to Manyame Park (and many other areas) and you will understand how people are so clever they have cables running from a transformer through thick bush to their houses, they pay $5 a months to some ZANU PF Committees!! Kikiki If you think I am bluffing just take a drive to Manyame Park TODAY….no rule of law. Pamberi with beating the system…silent protest, ZESA managers have no idea what is happening out there.

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