Why Zesa pulled plug on Sable Chemicals

Zesa resolved to cut power to the country’s sole ammonium nitrate fertiliser manufacturer, Sable Chemicals, after the latter’s failure to harness its ballooning power bill estimated at $150 million, sources have revealed.

BY BLESSED MHLANGA

“We are selling power to them (Sable Chemicals) at a subsidised rate of 5 cents per kilowatt, while domestic consumers are buying at 9 cents per kilowatt. Sable Chemicals was failing to pay its debt and, therefore, affecting our operations,” the source said.

“Because of their huge debt, management felt it was better to supply our premium prepaid consumers ahead of Sable Chemicals, that’s why we cut off power supplies.”

Zesa spokesperson, Fullard Gwasira confirmed that Sable Chemicals’ bill was around $150 million.

“We are owed lots of money by industry, for example Sable Chemicals alone owes us $150 million and these debts have serious implications on our operations as a power utility,” he said.

sable

Sable Chemicals CEO, Jack Murehwa said the issue of the power debt was being discussed at a high level. He refused to be drawn into discussing figures.

Murehwa, however, denied owing Zesa any money, saying the debt was the government’s component of the bill.

Zesa is currently importing 300 megawatts of prepaid power from South Africa’s Eskom to augment supplies by local generators.

“We are, for the first time, importing power from South Africa and what people should understand is that these are prepaid imports and without cash we will not be able to buy power. Therefore, our premium consumers are domestic consumers who are prepaid clients,” Gwasira said.

Mines minister Walter Chidhakwa said the mining sector enjoys special power rates, with chrome smelters buying electricity at 6 cents per kilowatt.

“They get that special rate because about 40% of chrome production is made out of the electricity component and, therefore, for production to be viable the rates had to be reduced,” he said.

Sable Chemicals was consuming 80 megawatts of power and employing 493 workers before Zesa cut power supply to less than 10 megawatts.

The fertiliser producer was then forced to retrench over half of its workforce after closing down its electrolysis plant.

4 Responses to Why Zesa pulled plug on Sable Chemicals

  1. mama mather January 6, 2016 at 12:32 pm #

    Are u disappointed in love or u want to get back your ex lover who is either drifting apart or has moved on but you just can’t let go: ignite the romance! battling with bad luck ,family ,business problems, time to change the way life comes to you! yes its destiny but it can be twisted a little to get the best out of life! don’t give up yet, there is hope, looking for your dream job but the mission seems close to impossible: don’t give up come to me! is your life not pleasant and you wish you deserve better; then you do! is your marriage at the verge of breakdown ,is there a divorce in the pipeline? get the results that you wish it doesn’t have to be messy if you don’t want it that way and alternatively you can stop it immediately or fasten it and start over again to minimize the pain ,the choice is yours! court cases at whatever stage: you can change the outcome! how to do this CONTACT MAMA MATHER +27603486949
    Email:mamamather2@gmail.com
    http://www.africanspiritualhealer.com

  2. Jake Rabbit January 6, 2016 at 2:51 pm #

    Why are these people running these concerns when clearly they are not capable?
    And people wonder why no one has any confidence doing buisiness with the country lol !

  3. Manuel January 7, 2016 at 7:10 am #

    I have a prepaid Zesa meter but most of the time I have no Zesa power. As a domestic user I pay $9cents per kwv while Sable was paying $5 cents per kwv . A domestic consumer effectively subsidising Industry . Its unheard of. Its only in Zim where consumers subsidise producers. Its madness!

  4. taylormarry4 January 7, 2016 at 9:18 pm #

    I q­ui­­­t wo­­­rk­­­­ing m­­­y de­­s­k jo­­­b an­­d n­­o­w, I st­­­art­­­e­d e­­arn­­­in­­g 9­­5 b­­­­­­uck­­­­­­s ho­­­­ur­­­­­l­y…H­­­­o­w I d­i­d i­­­­­­t? I a­­m f­reelan­­­­­cing o­v­­­­­­­er t­h­­­­­e i­n­t­­­­­­­­­­­­ernet! M­­­y la­­­s­t jo­­­­­­­­­­­­­­­­­­­­b d­id­­­n’t e­­­­­xact­­­­­ly m­­­­­­­­ak­­­­­­e m­­­­­­­­e ha­­­­­­­­­pp­­­­­­y s­­­­­­­­­o I w­­­­­an­t­e­­­­­­d t­­­­­o t­­­­­­­­ak­e a b­­r­e­ak a­­­­nd h­­­av­­­e a f­­­re­­sh s­­tar­­t… A­­­­f­t­e­r 6 y­­­r­s I­t w­­­­as we­­­­­i­rd fo­­r m­e t­o le­­­­­ave m­­y p­­re­­­vi­­­ous j­­­­ob a­n­­­­­d n­­­­­­ow I a­m del­­­igh­ted we­­­r­e i am

    ••••••► w­­w­­w.­­H­­­o­­­m­­­e­­­S­­­a­­­l­­­a­­­r­­­y­­­1­­­0.­­c­­o­­m­­

© 2016 NewsDay Zimbabwe. All Rights Reserved.

DMMA logo