Zim power utility seeks to recover $1bn

HARARE: The country’s energy distributor, Zimbabwe Electricity Transmission and Distribution Company (ZETDC), has intensified its efforts to recover more than $1 billion (R14bn) in debt owed to it by consumers.

Of the total debt, domestic consumers account for $300 million. “The company is intensifying revenue collection efforts in order to maintain the prevailing stable power supply situation,” the energy supplier said yesterday

“To that end, ZETDC would like to advise all prepaid customers in arrears that the recovery rate of 40 percent will be increased to 50 percent with effect from September 1 to ensure they pay up their debts within reasonable periods.

“All business customers on both prepaid and post-paid platforms in arrears are also being advised to clear their debts within six months with effect from September 1 for the power utility to be in a position to supply adequate electricity to customers.”

ZETDC said it would hand over defaulting customers to its lawyers.

At the start of the programme five years ago, ZETDC said it would recoup only 5 percent from every transaction made by its customers, but the utility has been raising its recovery percentage and has now reached 50 percent.

The energy distributor has been struggling to recoup debt from its customers. Five years ago it introduced the prepaid meter system.

For years, Zimbabwe has failed to produce enough power and has often struggled to pay for imported energy. Local electricity production has been hampered by obsolete equipment, defaulting customers and vandalism.

Last month, the Zimbabwe Energy Regulatory Authority shot down an application by ZETDC to have tariffs increased by 49 percent, to help pay for power imports.

Zimbabwe needs 2 200 megawatts of power, but its power plants are only producing 1 200MW. – ANA