Zesa spreads prepaid meters to farms

ZESA Holdings has been ordered to implement prepaid and smart electricity meters across all sectors of the economy by October this year, a government move aimed at enhancing revenue collection and curbing rampant non-payment, especially among large electricity consumers.

The directive mandates the installation of prepaid and smart meters in government buildings, parastatals, commercial farms, and other high-usage institutions, many of which currently operate on post-paid billing systems and have accumulated substantial debts.

Prepaid meters require consumers to pay for electricity upfront, similar to topping up mobile airtime. Smart meters provide real-time monitoring of electricity use and enable remote billing and disconnection, improving billing accuracy and eliminating estimated charges.

At an energy sector briefing in Harare on Wednesday, Energy and Power Development Minister July Moyo said the metering initiative is part of broader reforms to ensure ZESA operates under a financially sustainable model supported by cost-reflective tariffs.

"Cabinet has now said ZESA is part of our reforms. Go and do smart metering and prepaid metering in the whole economy so that there is predictability of income," Minister Moyo said. "With this cost-reflective tariff, our energy demands will be met."

He criticized the current system where households, typically the smallest consumers, mostly use prepaid meters, while larger institutions continue to enjoy post-paid arrangements, often defaulting on payments.

"It is not fair. So, there can never be this excuse about, ‘Well, we have no money.' We have no money, yeah," the minister stated, emphasizing the urgent need for financial discipline and equality.

By October, all major electricity consumers-including government ministries, parastatals, and commercial farms-are expected to be on prepaid or smart meters.

"By October, ZESA will put farmers on prepaid, Government Ministries on prepaid and parastatals on prepaid," Minister Moyo affirmed.

He noted that domestic consumers, who have the highest compliance rate due to prepaid billing, continue to carry the burden of supporting ZESA's cash flow. The prepaid metering system has significantly improved payment compliance among households, ensuring that electricity is paid for before consumption and reducing arrears.

"This is in order to make sure that there is access to international finance because they (investors) can see that the collection is there," Minister Moyo said, highlighting that reliable and transparent billing is crucial for attracting foreign investment in the energy sector.

ZESA has long struggled to recover debts from government departments, irrigation schemes, and large commercial users, hindering its ability to invest in critical power generation, grid maintenance, and network expansion.

The government's push for prepaid and smart meters across all sectors marks a decisive step towards financial sustainability and improved service delivery in Zimbabwe's energy sector.