News / National
Zesa threatens to disconnect defaulters
22 Apr 2013 at 06:35hrs | Views
ZESA Holdings' subsidiary, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), has intensified its debt collection and has threatened to switch off power supplies from defaulting customers after noting increased laxity in bill payment by some of its clients.
In a statement issued over the weekend, the power utility said the high default rate had constrained its revenue base and ability to continue supplying power.
"ZETDC has noted with serious concern that over the past three months there has been significant slackening in the manner some of the customers have been paying their electricity bills. This has resulted in a scenario where the money owed to ZEDTC has continued to rise, constraining the capacity of the company to pay for such critical obligations such as electricity imports, coal, spares to repair faults and statutory obligations," reads the statement in part.
As of February this year, Zesa Holdings was owed $730 million by consumers, according to chief executive officer Josh Chifamba.
However, consumers have raised concern over Zesa's "shambolic" billing system and the snail's pace at which the utility was installing pre-paid meters that would enable consumers to self-manage their power consumption.
Harare Residents Trust coordinator Precious Shumba is on record saying Zesa was giving a raw deal to clients who were yet to have pre-paid meters installed on their properties.
"Zesa is getting money from unrealistic electricity charges lumped on clients still on fixed meters. They are raising money, but that is not translating into progress," said Shumba. "The fixed meter billing system is chaotic and confusing. Some are still being forced to pay estimated charges and this has created inconsistency." Since August last year, Zesa has installed over 100 000 prepaid meters on domestic premises countrywide leaving an estimated 600 000 more customers awaiting installations.
On April 14, the Government Gazette published Statutory Instrument 44A of 2013 which set rules and regulations guiding the installation of prepaid meters and people will have to install them at their own cost.
In a statement issued over the weekend, the power utility said the high default rate had constrained its revenue base and ability to continue supplying power.
"ZETDC has noted with serious concern that over the past three months there has been significant slackening in the manner some of the customers have been paying their electricity bills. This has resulted in a scenario where the money owed to ZEDTC has continued to rise, constraining the capacity of the company to pay for such critical obligations such as electricity imports, coal, spares to repair faults and statutory obligations," reads the statement in part.
As of February this year, Zesa Holdings was owed $730 million by consumers, according to chief executive officer Josh Chifamba.
However, consumers have raised concern over Zesa's "shambolic" billing system and the snail's pace at which the utility was installing pre-paid meters that would enable consumers to self-manage their power consumption.
Harare Residents Trust coordinator Precious Shumba is on record saying Zesa was giving a raw deal to clients who were yet to have pre-paid meters installed on their properties.
"Zesa is getting money from unrealistic electricity charges lumped on clients still on fixed meters. They are raising money, but that is not translating into progress," said Shumba. "The fixed meter billing system is chaotic and confusing. Some are still being forced to pay estimated charges and this has created inconsistency." Since August last year, Zesa has installed over 100 000 prepaid meters on domestic premises countrywide leaving an estimated 600 000 more customers awaiting installations.
On April 14, the Government Gazette published Statutory Instrument 44A of 2013 which set rules and regulations guiding the installation of prepaid meters and people will have to install them at their own cost.
Source - newsday
