Zesa to increase power charges

via Zesa to increase power charges November 29, 2013  NewsDay

ELECTRICITY users should brace for tough times as the national power utility Zimbabwe Electricity Transmission and Distribution Company (ZETDC) plans to hike tariffs barely three months after it slashed debts for domestic consumers and farmers.

The power company yesterday announced that it had applied to the country’s energy regulator Zimbabwe Energy Regulatory Authority seeking to review its tariffs next year in a bid to boost revenue and improve operational efficiencies.

The development is likely to further pile pressure on consumers already bearing the brunt of an underperforming economy.

“The Zimbabwe Electricity Transmission and Distribution Company has applied to the Zimbabwe Energy Regulatory Authority for a review of the electricity tariff applicable to its customers in 2014 in terms of the provisions of section 53(1) of the Electricity Act (Chapter 13:19),” reads part of the notice.

“This application is seeking a review of the tariff to an average of 11,48c/KWh from the current 9,86c/KWh. This adjustment has been applied using the approved rate of return methodology. This tariff application is based on a revenue requirement $986 362 044 for 2014.”

ZETDC said it planned to raise additional funds to meet operational and maintenance costs and hedge against increased cost of electricity purchases. The electricity distribution company also hopes to improve service delivery, power supply security, infrastructure maintenance and availability and value for money.

Zimbabwe is currently struggling to meet its energy requirements due to limited investment in the capital-intensive sector. Authorities say power shortages may ease in 2017 after government has completed several power generation projects on the cards. As of yesterday morning, local power generation stood at 1 104 megawatts (MW) against a peak demand of 2 200MW.

According to a power generation analysis report provided by Zimbabwe Power Company, Unit 1 at Hwange Power Station was yesterday taken out of service while Unit 5 was taken out a fortnight ago for planned major overhaul works. The unit is expected back in service at the end of February.

Unit 6 was taken out of service on Sunday to enable boiler tube leak repairs and returned to service on Thursday. At Kariba Power Station, Unit 3 was also taken out a fortnight ago for remnant life assessment. Alstom are mobilising to carry out the stator core repairs and re-tensioning

Unit 5 was taken out of service on Wednesday to enable the disconnection of the unit transformer. The unit returned to service yesterday on the station transformer. In September, Zesa credited all domestic customers with a debt relief of $160 per household.

The collective debt relief for farmers was estimated at $80 million while that for ordinary consumers was $90 million.

The power authority has a legacy of debts of close to half a billion dollas that includes those debts taken over from Central African Power Company which used to procure power for the nation.

 

COMMENTS

WORDPRESS: 11
  • comment-avatar
    lawyer 8 years ago

    Truth is that there is an incredible amount of economic sabotage going on at Zesa currently under investigation.
    The west has hgiven up most of the sabotage funding so someone ghas to pay, if you are clever you will complain and object, nealy all the stories from zesa are propaganda designed to cover up corruption or sabotage. listen to the bleats in parliament from MDC/Cross about how Zanu will fail because they have no power – they know because they are behind the sabotage.
    The pre- paid meter scam where Tsvangerai’s som was given 50 million to import meters,
    We were told its compulsory by legislation which is a lie there is no legislation and nor could there be as the scam was conducted between governments. We were also told is was free another lie there is legislation saying that if you wanted a pre paid meter the costs of the meter and installation can be put on your bill as an unpaid bill
    If you complained the company secretary would say we were ordered to do it.
    Its now under investigation by fraud, 2nd floor,serious crime in Harare,check!
    There was panic at ZPC as the deal with Namibia was running out to supply them with power which means we have more power.
    I am given to understand that we export more than we import.
    Harare power ataion is now running that’s not good as the sabateurs wanted it closed down so they devised as plan initially for 85 million to asdd to more generators there.
    in return for supplying Namibia with power. Unfortunately there was no longer an MDC Minister and it was blocked so the price was increased to 135v million as larger kickbacks would be needed to push the deal through so that there would be no increase in power for 5 years – just a coincidence that’s the next election date!
    Cost of 30 MW generators top of the range GEC searched on Google is 5 million each x2 10 million, who gets the rest?.
    Harare power station now makes a million a month profit at old tariffs 20% output covered all overheads meaning we were running at 300% markup – don’t listen to journalists who are too lazy to do research go and ask like I did.
    Object to increases to put money in the pockets of thieves and corrupt employees that is all its about.
    Junior Zesa employee s are considering strike action as their pay has not been increased and they see their rich bosses stealing more and more – ask!
    This is the real story.

    Then there’s normal day to day sabotage like pouring a bucket of water over a hot generator to bend the shaft and put it out of commission as happened in Harare, Nyati and Wankie.
    journalists need to do a little research for their pay, go to Harare power station its not far to walk – see the smoke from the chimneys ask the background, you can speak as well as write, its allowed!

    • comment-avatar
      Gondo Ariashyi 8 years ago

      Brain washed with no mind of your own. What has been developed in the way of power since 1980 sweet nothing. They can only destroy not improve anything. Do you think power is like the grass that now grows wild on the farms that were forcefully taken. Grow up and focus on the key issues that have destroyed Zimbabwe.(Greed)

      • comment-avatar
        lawyer 8 years ago

        Perhaps you can walk and ask too rather than waste space with meaningless comment/.

    • comment-avatar
      Boss MyAss 8 years ago

      Really ?

  • comment-avatar
    chilimanzi 8 years ago

    not amused.

  • comment-avatar
    Mr Mixed Race 8 years ago

    I fully agree with you Lawyer and I want to add other observations I have noticed with Zesa.This organisation is not cost effective in its administration.A large quantity of its electricity generated is supplied freely to its employees and retired personnel. We all know that each employee of Zesa gets about $200 worth of units per month including the retired personnel.This amount is equivalent to 1882 Kilowatts[units] after subtracting 6% for rural electrification per household.Surely, a normal household with basic electrical items should use about 500-600 units per month.Why then give them so high allocation which they end up abusing with friends.Let us assume that they are only 5000 employees countrywide and 500 retired personnel then Zesa is giving out for free about 5500×200=1.1million dollars per month which relates to 10.35 Megawatts.This could be used by our industry to generate more wealth for the country.Zesa is fully owned by the government, therefore they should act decisively to root out corruption and deliberate sabotaging of equipment mentioned above by Lawyer.

    • comment-avatar
      Boss MyAss 8 years ago

      Since you agree, you can enjoy power cuts till you die

      • comment-avatar
        lawyer 8 years ago

        By way of explanation to those a bit slow, we don’t want power cuts till we die and object to the corruption/sabotage.
        Read a bit slower might help.

        • comment-avatar
          lawyer 8 years ago

          Currently there are massive power cuts.
          The real situation is.
          Hwange has one maintenance engineer in charge.
          It is normal to do maintenance one generator at a time.
          But if we stop a few at once it gives us pressure to increase tariffs.
          The Mimister has refused to make payment in kind – however if we tell Nampower to move in and do generators all at once then he will be faced with the bill.
          As Zesa is broke he will have no choice but to ;pay in power as they planned thus there will b e no improvement for 5 years until the next election as per MDC plans.
          Eddie Cross made a statement in parliament stressing power was a priority and nothing would work without it.
          Coincidence – I think not.
          Those involved belong in jail.

    • comment-avatar
      Muyteyte 8 years ago

      It is very true my bro// so does it mean the public has to pay for these pple who are currently doing nothing at all to ease the current pwr situation

  • comment-avatar
    Muyteyte 8 years ago

    Zesa your moves are not justified please