City installs 2 000 prepaid water meters

Zimbabweans are set to pay more towards clearing their Zesa arrears after the power utility increased its recovery rate from 40 to 50 percent of electricity purchases by customers, The Herald reported.

Zesa has also directed defaulting industrial and commercial customers to clear their debts within the next six months or face unspecified action.

Defaulting customers under the old system have been advised to re-negotiate their payment plans to "maintain the prevailing favourable power supply situation."

The move, which is effective from September 1, has been met with an outcry from consumers who argue the power utility should consider the prevailing economic situation before making unilateral decisions.

Zesa spokesperson Mr Fullard Gwasira yesterday said without adopting these stringent measures, the country risks a return to long hours of load-shedding experienced in 2015.

"Our domestic approach is to raise the redemption rate for those customers on prepaid meter platforms and we have increased from 40 percent to 50 percent beginning September 1," he said.

"An increase in the debt redemption rate will see debts being liquidated faster. For those on postpaid platforms, they should come and renegotiate payment plans to make them workable. Their debts should be recovered in a reasonable period of time. To businesses and commercial customers, we want them to clear their arrears within six months and it is a fact that without these measures, Zesa won't be able to supply power effectively."

Under the prepaid meter system, Zesa will take 50 percent of every purchase of electricity to offset the individual's debt accumulated under the old meter system.

Zesa is owed more than $1 billion by consumers, with domestic consumers accounting for $300 million.

Although Zesa has made strides on putting many consumers on the prepayment system, there is still outrage over the old billing system, with customers accusing the power utility of failing to timeously capture payments and at times forcing them to pay bills twice.

Most of the money consumers owe accrued due to bills issued based on estimates, customers claim.

Mr Gwasira said in the absence of a tariff increase, which was shot down by the Zimbabwe Energy Regulatory Authority, Zesa was looking at various avenues to finance power imports and new projects.

"It is also important to realise that this year, Zesa did not get a tariff increase and the mandate that we were given by the regulator (ZERA) is to collect what we are owed and to also look at efficiencies within the business that we can put in place," he said.

"We last got a tariff increase in 2012 and we are trying to ensure these bills don't remain hanging. If we get this revenue, we are able to pay for imports, which is very important for the prevailing power supply situation to continue. We are simply saying clear your debt such that we are able to serve you better."

ZERA recently rejected a proposal by Zesa to increase electricity charges by 49 percent and said the average power tariff should remain at 9,86 cents per kilowatt hour this year.

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) had proposed to raise the average tariff to 14,69 c/kWh.

The regulatory authority said it had considered the performance of the economy as was well as efforts being made by Government to improve the ease of doing business in the country.

Zesa is importing power from regional countries such as South Africa and Mozambique. Most of the power is pre-paid, a situation which requires Zesa to have ready funds.