eBusiness Weekly
Africa Moyo and Golden Sibanda
The Zimbabwe Electricity Transmission and Distribution Company (ZETDC)’s ability to supply uninterrupted electricity is under threat due to the $1,05 billion debt owed by consumers.
The situation is compounded by biting foreign currency shortages which have also seen the firm battling to replace 282 transformers of varying sizes that were either stolen or vandalised in the Harare region last year.
ZETDC requires $5,6 million to replace the transformers, said general manager Engineer Julian Chinembiri.
Eng Chinembiri said this on Wednesday night while addressing delegates from the mining, manufacturing, banking, and hospitality sectors in Bulawayo.
Although Eng Chinembiri did not break the debt down to indicate the biggest culprits, there were indications in the past that customers are on the post-paid system — most of whom are in the farming sector and have been vehemently refusing to switch to the prepaid metering platform — are the biggest defaulters.
“. . . please allow me to appeal to the consciences of defaulting customers that are on the post-paid system to consider paying their electricity bill for us to be in a position to continue servicing them efficiently.
“ZETDC is owed $1,05 billion by defaulting domestic, mining, industrial and business consumers and you can imagine the negative impact that the debt that is locked in such customers has on our product and service delivery,” said Eng Chinembiri.
ZETDC is now implementing several debt recovery strategies that include prepaid metering debt upload, payment plans, disconnections, key account management, set-offs, litigation and stop orders for maize, wheat and tobacco.
Today, ZETDC has recovered $40,2 million and collections are ongoing.
Eng Chinembiri said consumers that continue to default would have service withdrawn.
The failure by consumers to honour their obligations have plunged ZETDC in spot of bother as it now battles to replace vandalised and new infrastructure such as transformers and prepaid meters.
Under phase one which has been completed, ZETDC has installed 564 859 prepaid meters.
The project is now in phase two with the aim to empower consumers to manage their electricity consumption.
So far, 612 000 meters have been installed from an eligible base of almost 700 000 in small institutions and domestic premises across the country, representing 87percent of the eligible customer base.
Eng Chinembiri said they have engaged 17 local agents, through the Zimbabwe Energy Regulatory Authority (Zera), to import and sell meters in the open market to ZETDC clients.
The agents were selected through a prequalification process done by Zera.
Said Eng Chinembiri: “In the scheme, customers will be able to purchase their own prepayment meters from the 17 licensed agents/ vendors through a customer-supplied metre scheme.”
In the past, ZETDC used to have similar arrangements.
For ZETDC to get meters, it has to through the Procurement Regulatory Authority of Zimbabwe (PRAZ).
Recent tenders for prepayment meters are yet to be consummated due to foreign currency shortages and the general liquidity problems.
However, through its parents Ministry – Energy and Power Development – has since requested for priority in terms of foreign currency allocations to enable it to procure 130 000 meters from tender.
The measures are expected to ensure that all domestic and small businesses are converted to pre-paid.
More customers continue to demand meters particularly those in new residential areas.
ZETDC estimates that there is over 100 000 customers under this category, and there are efforts to engage housing developers to ensure that such infrastructure, which have electrical reticulation as much as they have roads and water, is put in place.
