Business / Companies
Zesa Holdings cries foul over Gvt directive to stop disconnections
18 Nov 2012 at 05:35hrs | Views
Zesa Holdings says it might be forced to scale down operations owing to crippling financial problems brought about by a Government directive to halt cutting supplies to defaulting electricity customers.
In an interview last week, the power utility's managing director Engineer Julian Chinembiri said it was highly likely that his institution will soon be unable to sustain power imports.
Contacted for comment last Friday, Energy and Power Development Minister Mr Elton Mangoma Energy said Zesa Holdings was using wrong channels to address the matter.
"I have nothing to comment. If Zesa has a problem with the directive they should approach me, not the Press," he said.
Eng Chinembiri said the parastatal was struggling to remain afloat as a result of restricted revenue inflows.
"We are not getting any money to buy electricity yet we have been directed to give everyone electricity for free.
"It is now difficult for us to provide efficient services considering that people are not settling their debts.
"The company might even be forced to close because a business cannot run without any income.
"We need coal to generate electricity. How are we going to get it when we have no money? Production has decreased at all our stations because the company has no money," he said.
He said Zesa Holdings would not resume supplies to those affected by the power disconnection prior to the directive unless they settle their arrears.
"We are not going to reconnect those who had their electricity disconnected before the Government intervened. They should clear their debts for us to reconnect their electricity. Consumers should not take advantage to default. People should not relax and get electricity for free," he said.
Eng Chinembiri said this development came at a time when the parastatal was working towards improving service delivery through prepaid meters.
"It is now impossible for us to reach our goal of becoming efficient through prepaid meters because we have no money. Some of our contractors refused to work with us because we were not paying them. However, we have managed to get more than 20 000 prepaid meters for the project and as we speak, installation is in progress. We have now moved to Gweru and Chinhoyi.
"So far, we have installed 30 000 prepaid meters. We are hoping that by the end of November we would have installed 50 000 prepaid meters."
Eng Chinembiri said Zesa Holdings managed to clear the Cahora Bassa debt.
"We were talking to Cahora Bassa so that they give us more electricity. They, however, put the talks on hold because we have insufficient money for the deal," he said.
Recently, Mr Mangoma announced the halting of electricity supply disconnections to defaulters. He said the move sought to pave way for the roll out of the prepaid meter system.
Meanwhile, the power outages central Harare has experienced over the past two days are a result of ageing equipment and a technical fault at a Zesa sub-station. Zesa Holdings spokesperson Mr Fullard Gwasira last night said most of the equipment was designed to function for 25 years, but has been stretched to nearly 50.
In an interview last week, the power utility's managing director Engineer Julian Chinembiri said it was highly likely that his institution will soon be unable to sustain power imports.
Contacted for comment last Friday, Energy and Power Development Minister Mr Elton Mangoma Energy said Zesa Holdings was using wrong channels to address the matter.
"I have nothing to comment. If Zesa has a problem with the directive they should approach me, not the Press," he said.
Eng Chinembiri said the parastatal was struggling to remain afloat as a result of restricted revenue inflows.
"We are not getting any money to buy electricity yet we have been directed to give everyone electricity for free.
"It is now difficult for us to provide efficient services considering that people are not settling their debts.
"The company might even be forced to close because a business cannot run without any income.
"We need coal to generate electricity. How are we going to get it when we have no money? Production has decreased at all our stations because the company has no money," he said.
He said Zesa Holdings would not resume supplies to those affected by the power disconnection prior to the directive unless they settle their arrears.
"We are not going to reconnect those who had their electricity disconnected before the Government intervened. They should clear their debts for us to reconnect their electricity. Consumers should not take advantage to default. People should not relax and get electricity for free," he said.
Eng Chinembiri said this development came at a time when the parastatal was working towards improving service delivery through prepaid meters.
"It is now impossible for us to reach our goal of becoming efficient through prepaid meters because we have no money. Some of our contractors refused to work with us because we were not paying them. However, we have managed to get more than 20 000 prepaid meters for the project and as we speak, installation is in progress. We have now moved to Gweru and Chinhoyi.
"So far, we have installed 30 000 prepaid meters. We are hoping that by the end of November we would have installed 50 000 prepaid meters."
Eng Chinembiri said Zesa Holdings managed to clear the Cahora Bassa debt.
"We were talking to Cahora Bassa so that they give us more electricity. They, however, put the talks on hold because we have insufficient money for the deal," he said.
Recently, Mr Mangoma announced the halting of electricity supply disconnections to defaulters. He said the move sought to pave way for the roll out of the prepaid meter system.
Meanwhile, the power outages central Harare has experienced over the past two days are a result of ageing equipment and a technical fault at a Zesa sub-station. Zesa Holdings spokesperson Mr Fullard Gwasira last night said most of the equipment was designed to function for 25 years, but has been stretched to nearly 50.
Source - SM
