ZESA Holdings has lined up a number of stop-gap-measures,
which include mobilising US$80 million to clear arrears with Eskom of South
Africa and Hidroelectrica de Cahora Bassa (HCB), in bid to alleviate rolling
power outages being experienced in the country.
Payment of the US$80 million arrears would unlock more
power imports, which have slumped significantly from 450MW to a measly 150MW
due to arrears.
Zimbabwe is battling electricity shortages following a
sharp decline in water levels in Kariba Dam due to erratic rains in the 2018-19
rainfall season, and generation constraints at Hwange Power Station because of
ageing equipment.
This has resulted in massive load shedding, which lasts up
to 10 hours especially for residential customers.
Zesa spokesperson, Mr Fullard Gwasira said in e-mailed
responses that they “acknowledge” the increase in power outages and believe
power imports and using electricity sparingly would be a panacea in the
interim.
“(We are introducing) demand side management (DSM)
initiatives where customers are urged and encouraged to use electricity
sparingly in order to release additional capacity to other needy areas and;
mobilisation of resources to clear the US$80 arrears that Zesa owes to regional
suppliers (Eskom of South Africa and HCB of Mozambique) in order to unlock
capacity for increased imports,” said Mr Gwasira.
Zesa currently imports 50MW from Eskom and up to 100MW from
HCB but can access up to 450MW from the two regional power utilities if it
extinguishes its arrears.
Said Mr Gwasira: “As a result of an outstanding payment,
the two countries Mozambique and South Africa have reduced exports from their
respective utilities to 50MW and 100MW until their arrears have been cleared.”
Zesa struggles to pay for power imports due to foreign
currency shortages.
Mr Gwasira expects load shedding to “continue until enough
resources have been availed to fill the gap with imports of about 500MW from
the region”.
“Sister utilities expect us to provide a workable payment
plan and pay for current consumption in full. A good rainfall season also will
come in handy as it will restore the live level of the dam,” he said.
In the long-term, Zesa expects the completion of the Hwange
Expansion Project in 2022 and the re-powering of Bulawayo and Harare power
stations to bring “significant relief” to the electricity supply situation.
On completion, Hwange Thermal Power Station would add 600MW
to the grid while the re-powering project at Bulawayo and Harare power stations
would add 90MW and 120MW respectively.
There are concerns Zimbabwe could be stuck in power
challenges until it revises the tariff, which is seen as key in attracting
fresh investments and allow for repairs on infrastructure.
Zesa has not obtained a tariff increase since 2011 and
currently sells electricity at an average price of $9,86c per kilowatt hour
(kWh), which used to be US9,86c/kWh before the Monetary Policy Statement of
February 20.
Mr Gwasira concurred. “It is true that we have a
sub-economic tariff which needs an urgent review. The cost of thermal power
generation has increased significantly, along with the cost of diesel, which
are key components in the generation mix.
“This is exacerbated by the fact that most of our
consumables such as power imports, cables, oils, diesel, water at Kariba,
transformers and transformer oils, and spares, are all paid for in United
States dollars,” he said.
The introduction of a local currency, RTGS$, means
consumers are now paying almost three times less than the previous value.
Confederation of Zimbabwe Industries (CZI) president Mr
Sifelani Jabangwe told our Harare Bureau by phone that: “I think the tariff
probably now needs to reviewed because even if you look at it against the
interbank rate, the tariff has now come down from the average tariff of
US$0,0986 to just over US$0,03.
“We have always said we want it to be around US$0,05 or
US$0,06 but it is now way below that.”
Zimbabwe National Chamber of Commerce (ZNCC) president Dr
Divine Ndhlukula also said “certainly, power is now cheaper”, adding “there is
need to review the power tariff”.
But the industrialists want a tariff that will make local
products competitive. Herald
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