Government has approved a duty waiver on solar equipment and
allowed mining firms to procure energy directly from the Southern African Power
Pool.
Further, selected hotels in resort areas will soon start
paying electricity bills in foreign currency, as part of a raft of measures to
overcome energy problems bedevilling the country.
In the fuel sector, Government directed the urgent rollout
of a remote tracking system by the Zimbabwe Energy Regulatory Authority (Zera)
and warned that errant service stations involved in profiteering will have
their licences revoked.
This was said by Information, Publicity and Broadcasting
Services Minister Monica Mutsvangwa as she read out decisions of the 25th
Cabinet meeting in Harare yesterday.
She said following a briefing from Energy and Power
Development Minister Fortune Chasi, Cabinet noted with concern prolonged
load-shedding, caused by reduced power supplies mainly due to low water levels
at Lake Kariba.
“To alleviate the situation on the power supply front,
Cabinet resolved as follows: to endorse the arrangement whereby large hotels in
the Victoria Falls resort town can pay their ZESA bills in foreign currency so
as to boost capacity to import power supplies; that a large-scale programme be
implemented to promote the importation, local production of solar equipment and
the use of solar power as an alternative energy source.
“In this regard, special incentives shall be provided
through duty waivers on imported solar equipment while it shall be mandatory
for all new construction projects to be solar-powered,” said Minister
Mutsvangwa.
“Furthermore, Cabinet embraced the commitment by mining
companies under the banner of the Zimbabwe Chamber of Mines to pay a cost
recovery electricity tariff to ZESA, and to directly procure extra power
supplies from the Southern African Power Pool as well as to mobilise a lump sum
towards the settlement of the existing power imports debt arrears.
“This will, among other things, assist in unlocking further
power imports; and that the implementation of the already existing coal-bed
methane gas projects be speeded up in order to provide affordable gas for
cooking and heating purposes, thereby reducing reliance on power from the
national grid.”
On fuel, Minister Mutsvangwa said Cabinet noted with
concern that some service stations were continuing to flout their licensing
conditions by rejecting electronic payments, diverting fuel to the parallel
market, dispensing the product to preferred customers and engaging in other
mischievous activities.
“Cabinet accordingly directed as follows: the urgent
roll-out of the Matsimba Technology, which will enable Zimbabwe Energy
Regulatory Authority to remotely monitor the movement of fuel from the depot to
the service station, fuel stocks at service stations, fuel dispensing
activities at service stations, and the vehicles involved. A Ministerial
statement will soon be issued to spell out the modalities in that regard; and
that ZERA inspectors should be firmly on the ground and should immediately
withdraw operating licences of those service stations caught engaging in the
above-indicated malpractices,” she said.
Minister Mutsvangwa said responsible Ministry was already
ceased with work on a lasting solution to the country’s fuel supply challenges.
Speaking at the same event, Minister Chasi expressed
disappointment at some “rotten eggs” among service stations.
“I do not believe the majority of players are miscreants
but sadly we have a number of rotten eggs in the sector who believe they can
access our foreign currency and sell it on the black market. Some of them are
taking fuel and putting it in drums and selling it on the black market. There
will soon be screams in some quarters, these are very serious issues they cause
a great deal of inconveniences to the public. As Government, we put in place a
system to ensure that fuel is available, when we issue people with licences
they must operate in the national interest not to have petty, parochial
interest of self-aggrandizement. I can only say to you wait, sooner rather than
latter some people will go home, they will not get anywhere near a service
station,” said Minister Chasi.
He said fuel importers should have in the contracts with
their dealers, with clauses that ensure that they comply with the law to avoid
having their brands soiled.
On energy, Minister Chasi he was studying a report that he
got from technical experts that travelled to South Africa to engage Eskom
following a US$10 million payment aimed at reducing Government indebtedness.
He cautioned that the payment did not automatically unlock
electricity but there was need for continued discussions. Herald
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