ZESA needs $1,2bn for power, payroll

via ZESA needs $1,2bn for power, payroll –NewZimbabwe  20/01/2016

BULAWAYO: Power utility ZESA’s distribution subsidiary says it requires more than $1,2 billion this year to buy electricity, with more imports likely after the country’s main power plant Kariba South was handicapped due to lower dam water levels, officials said.

According to a paper presented at a consultative meeting in Bulawayo last Friday, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) said it requires $471 million to purchase power internally, mainly from another ZESA subsidiary, Zimbabwe Power Company (ZPC).

It said requires $194 million for emergence power supply, $141 million for importing electricity and $416 million — about 34 percent of the total — for payroll costs, administration and general expenditure and to pay Zimbabwe Electricity Regulatory Authority regulatory fees.

In 2014 and 2015, the total expenditure was $906 million and $995 million respectively. Comparatively, the expected total expenditure is 22 percent higher than last year.

ZPC is proposing a 22 percent increase in power costs from 5,06 cents per kilowatt hour to 6,64 cents per kilowatt hour on sale to ZETDC.

ZETDC wants a 49 percent tariff hike to 14,69 cents per kilowatt hour which it says is cost reflective and necessary to augment emergency power imports. Zesa has recently started to import 300MW from South Africa’s Eskom to supplement local generation.

An official who declined identification said the impact of reduced generation at Kariba had cost the utility $236 million in lost power since its capacity was capped at 475MW on August 27 last year due to lower water levels on the Zambezi River, hitting its revenues hard. Kariba is currently generating 324MW, about 43 percent of its installed capacity of 750MW according to ZPC.

The business community and farmers organisations have strongly objected to the proposals which they say will drive up the cost of production and deal a blow to a possible revival of an agriculture sector already hard hit by the effects of the El Nino weather pattern-induced drought.

A joint statement issued by manufacturing, mining and agricultural representative bodies on Tuesday called for significant cost reductions at Zesa and its units, especially in payroll and administration.

ZETDC said as at November last year it was owed $1 billion with government, parastatals, local authorities and sables accounting for $445 million. Total credit was at $880 million of which ZPC is owed $609 million.

It owed $288 million in loans, inclusive of historical debt.

The officials referred questions to Zesa Holdings spokesperson, Fullard Gwasira who was unavailable to comment.


  • comment-avatar
    Mukanya 5 years ago

    A more detailed forensic audit is required at ZESA not this cheap bar-talk.

  • comment-avatar
    Gandanga 5 years ago

    ZESA is a big liar, with the tacit support of the Zanu PF mafia. Minister of Energy gets paid from them and so is ZERA staff. ESC was better run than this corrupt monolithic.

    Tell me, how do you spend $416 million — about 34 percent of the total — for payroll costs, administration and general expenditure and to pay Zimbabwe Electricity Regulatory Authority regulatory fees and only spend $21million on operations and maintenance of the core assets that deliver your core business?

    The system losses from power generation to consumer is over 28%. But the sycophants at ZESA and Min of Energy have rejected any attempts to reduce the losses to less than 6%. The difference represents far more income than the proposed increases put together.

    This country seriously needs LEADERS. The army is protecting these morons at the expense of the future, just to lay their hands on cheap, meagre diamonds stipends. nxaaaa!

  • comment-avatar
    mtshayazabhoshe bra mamillion 5 years ago

    Zesa executives are paying themselves millions of dollars per year now they want us to support their livelihood.they can kiss my black ass!every society has problems but some are deliberately caused by poor management and nepotism that has engulfed my country.i don’t mind price increase in my electric bill that is AS LON AS IT IS ABOVE BOARD AND THE LOOTING OF OUR FUTURE STOPS NOW!…..On another angle those who think they can get away with nonsense when dealing with our lives while being employed by us the public i mean all civil servants one day you will run! one day is one Bra Rob run!