This poses a threat to the power supply situation in the
country.
Hwange Units 7 & 8, well-placed sources said, were
constructed on a contract based in US dollars, and private foreign investment
was utilised to finance the expansion project.
“The going is rough. ZETDC is purchasing power at a cost of
US$0,12 per kilowatt hour and selling it to consumers at an average cost of
US$0,10 per kilowatt hour, which is less than the cost of production,” sources
told Standardbusiness.
“As we speak, the organisation has accumulated a debt of
over US$60 million from the newly commissioned Hwange Unit 7 and 8 plants.”
The two units, with a combined power output of 600MW, cost
the country US$1,5 billion to finish. The project was undertaken by Sinohydro
Corporation.
The source continued: “Zesa (Zimbabwe Electricity Supply
Authority) needs to pay for Hwange 7 & 8 in forex to Sinohydro, the
contractor but consumers are paying in local currency. We have unsustainable
tariffs and people are not paying, especially the local authorities.
“If the tariff issue is not sorted, relations with the
Chinese are going to be affected. So far it’s good and everyone is happy, but
if the tariffs issue is not solved, Zesa is going to fail to pay the
suppliers.”
The insider said the national power utility used to import
up to 200MW from Mozambique, but now is getting about 10MW due to the failure
by Zesa to service its debts.
Standardbusiness understands that Zambia power utility
Zesco also discontinued the supply of 100MW to Zimbabwe because the contract
was not performing well.
“As long as Zesa is not getting the money it needs, it will
be in trouble and the whole industry is going to be affected. Zesa has no money
now to import,” the source said.
Sources said the national power utility was owed in excess
of $150 billion by consumers including local authorities.
According to analysts, a tariff review is necessary to
enable the utility to unlock imports and be able to buy power locally to close
the supply and demand gap.
They argued that the current tariff has actually failed to
support the economy.
While having a cost-reflective tariff would make it easier
for the utility to acquire electricity locally and regionally, it still needs
to be able to maintain its aging network and draw in private sector investment.
Social and economic developments are mostly driven by
energy. Therefore, a chronic lack of a sufficient and reliable supply would
cause the economy to suffer grave losses.
While touring the national control centre and Harare Power
Station on Thursday, Energy and Power Development minister Edgar Moyo said it
was critical to work towards eliminating loadshedding.
He said priority should be given to productive sectors and
“that the loadshedding schedule is well communicated and implemented
equitably”. Standard
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