Business / Economy
Costs of Namibian electricity exports to be re-negotiated: Mangoma
24 Feb 2011 at 06:58hrs | Views
Zimbabwe is seeking to renegotiate what it charges Namibia for electricity exports, according to Elton Mangoma, Zimbabwe's Minister of Energy.
"The tariff on this export is below cost," he told reporters today in the capital, Harare. "The current situation means that Zimbabwe, despite its own shortage of electricity, is subsidizing Namibia. This situation has to be corrected."
Zimbabwe is supplying Namibia with about 150 megawatts as part of an agreement signed in 2007. Under the accord, Namibia's state-owned power utility provided $40 million to refurbish Zimbabwe's Hwange coal-fired power station in exchange for supplies over a five-year period.
Zimbabwe is currently generating between 1,300-1,400 megawatts, against demand of 2,000 megawatts, Mangoma said. The country is also importing as much as 300 megawatts from Zambia and Mozambique, he said. Zesa Holdings, Zimbabwe's monopoly power company, owes $100 million for power imports.
The government has put on hold a 33 percent increase in electricity tariffs announced last week by the regulatory body to allow more consultations following protests by consumers and business organizations, Mangoma said.
Zimbabwe has licensed independent power projects, including RioZim Ltd.'s 2,500 megawatt Sengwa thermal station due for completion in 2014, to produce a combined 4,500 megawatts, Mangoma said.
"The tariff on this export is below cost," he told reporters today in the capital, Harare. "The current situation means that Zimbabwe, despite its own shortage of electricity, is subsidizing Namibia. This situation has to be corrected."
Zimbabwe is supplying Namibia with about 150 megawatts as part of an agreement signed in 2007. Under the accord, Namibia's state-owned power utility provided $40 million to refurbish Zimbabwe's Hwange coal-fired power station in exchange for supplies over a five-year period.
Zimbabwe is currently generating between 1,300-1,400 megawatts, against demand of 2,000 megawatts, Mangoma said. The country is also importing as much as 300 megawatts from Zambia and Mozambique, he said. Zesa Holdings, Zimbabwe's monopoly power company, owes $100 million for power imports.
The government has put on hold a 33 percent increase in electricity tariffs announced last week by the regulatory body to allow more consultations following protests by consumers and business organizations, Mangoma said.
Zimbabwe has licensed independent power projects, including RioZim Ltd.'s 2,500 megawatt Sengwa thermal station due for completion in 2014, to produce a combined 4,500 megawatts, Mangoma said.
Source - Byo24News
