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Forex shortages slow down pre-paid meter project

25 Jan, 2018 - 15:01 0 Views
Forex shortages slow down pre-paid meter project Minister Khaya Moyo

eBusiness Weekly

HARARE – Installation of pre-paid  electricity meters in residential areas has slowed down due to delays in  the release of foreign currency required by the two companies awarded  contracts to import the gadgets, a Cabinet Minister has said.

The Zimbabwe Electricity Transmission and Distribution Company (Zetdc)  embarked on the project a few years ago to counter challenges posed by  use of the old billing system.

Energy and Power Development Minister Simon Khaya Moyo said in 2015,  two companies, Paramount and Solutions for Africa (SFA) were awarded  contracts to supply 90 000 meters and 40 000 meters respectively.

To date, Paramount has delivered 14 166 meters with a balance of 75 834  meters remaining while SFA delivered 20 000 meters remaining with a  balance of 20 000 meters. But he said due to forex shortages, the companies were failing to  import the remaining meters.

“Foreign currency allocation from the Reserve Bank of Zimbabwe (RBZ)  remains a major challenge on the implementation of the prepayment  metering programme. Letters of Credit (LCs) were drafted and Afreximbank  engaged the RBZ to discuss the LCs. Batches of 20 363 meters from  Paramount and 9 000 meters from SFA are ready to be airlifted once the  RBZ approves the relevant L Cs,” he said.

“When we had adequate forex, we were installing a good 4 000 prepaid  meters per week. Regrettably, the situation has changed now with a few  hundred meters being installed per week.”

To augment availability of the meters, Khaya Moyo said the Zimbabwe  Energy Regulatory Authority opened a tender for the supply of prepaid  meters to individuals.

Under the envisaged programme, dubbed Customer-Supplied Meter  Programme, the Zetdc will set a maximum amount of money to be reimbursed  to customers by crediting their accounts for the cost of the meters.

“There will be a compelling need to select only a few companies who can  be monitored to minimise corruption and unlawful installation of these  meters. Regulations to manage this process will soon be promulgated  through a relevant Statutory Instrument,” he said. – New Ziana

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