Business / Local
Zesa to lose $300 million
08 Oct 2015 at 07:15hrs | Views
Due to the power crisis in the country, Zesa is set to lose more than $25 million in monthly revenues.
Zesa CE, Josh Chifamba, confirmed that monthly revenue of $25 million would be lost, a figure which translate into annual $300 million.
The power utility has been collecting about $60 million every month from electricity consumers, but due to load-shedding the revenues would be about $35 million per month.
Energy consumers are experiencing more than 20 hours of power cuts daily resulting in low energy consumption.
Meanwhile, Mining firms, through their umbrella body, have implored power utility Zesa Holdings to spare them on the planned drastic increase in power cuts to prevent the potential unbearable economic cost of such action.
Chamber of Mines chief executive Isaac Kwesu said that Zesa should consider prioritising supply to industry, especially mining, to avoid potential loss of jobs, closure of mining companies, scale down of production and missed projected growth targets.
He said there is direct positive correlation between power supply and production, meaning "without power you cannot produce" which negatively impacts mines and economic growth targets.
Among the major firms to be affected will be the country's biggest and second largest platinum producers Zimplats and Mimosa, respectively, Unki, Zim-Alloys, Afrochine and Sable Chemicals, which is the country's sole manufacturer of ammonium nitrate fertilisers.
Zesa CE, Josh Chifamba, confirmed that monthly revenue of $25 million would be lost, a figure which translate into annual $300 million.
The power utility has been collecting about $60 million every month from electricity consumers, but due to load-shedding the revenues would be about $35 million per month.
Energy consumers are experiencing more than 20 hours of power cuts daily resulting in low energy consumption.
Chamber of Mines chief executive Isaac Kwesu said that Zesa should consider prioritising supply to industry, especially mining, to avoid potential loss of jobs, closure of mining companies, scale down of production and missed projected growth targets.
He said there is direct positive correlation between power supply and production, meaning "without power you cannot produce" which negatively impacts mines and economic growth targets.
Among the major firms to be affected will be the country's biggest and second largest platinum producers Zimplats and Mimosa, respectively, Unki, Zim-Alloys, Afrochine and Sable Chemicals, which is the country's sole manufacturer of ammonium nitrate fertilisers.
Source - fingaz
