Power util­ity en­gages CZI on load shed­ding

Chronicle (Zimbabwe) - - Business - Bianca Mlilo

THE Zim­babwe Elec­tric­ity Trans­mis­sion and Dis­tri­bu­tion Com­pany (ZETDC) has en­gaged in­dus­try to as­sist the power util­ity meet its for­eign debt pay­ment obli­ga­tions in or­der to avoid load shed­ding.

ZETDC, a sub­sidiary of Zesa Hold­ings is re­spon­si­ble for the trans­mis­sion, dis­tri­bu­tion and re­tail­ing of elec­tric­ity.

Ac­cord­ing to a let­ter writ­ten to Con­fed­er­a­tion of Zim­babwe In­dus­tries (CZI) mem­bers by the CZI chief ex­ec­u­tive of­fi­cer Mr Clif­ford Si­leya, ZETDC has al­ready set the terms of the agree­ment.

“ZETDC has met with CZI over ef­forts to en­sure con­tin­ued power sup­ply to in­dus­try amidst pay­ment chal­lenges be­ing faced. As you may be aware, Zim­babwe is im­port­ing a sig­nif­i­cant amount of its power from South Africa and Mozam­bique, mainly due to de­pressed gen­er­a­tion from Kariba,” reads part of the let­ter.

Mr Si­leya said there have been chal­lenges in mo­bil­is­ing ad­e­quate for­eign cur­rency to pay for power im­ports and en­sure con­tin­ued sup­ply of elec­tric­ity.

“To avoid los­ing the power im­ports, ZETDC has made an ap­peal to busi­ness to as­sist by en­ter­ing into ar­range­ment to as­sist ZESA in meet­ing its for­eign pay­ment obli­ga­tions in or­der to avoid a pos­si­bil­ity of load shed­ding.”

The pay­ment terms ac­cord­ing to ZETDC in­clude an ac­crual of 10 per­cent in­ter­est on the pre­pay­ment.

The client, which is in­dus­try, would also be re­quired to make a for­eign cur­rency pre­pay­ment to ac­counts as in­structed by the power util­ity.

“Amount pre­paid plus in­ter­est to be con­verted at cur­rent tar­iff to credit en­ergy units. The con­sump­tion in ex­cess of the units cred­ited shall be paid by the client to ZETDC at the pre­vail­ing tar­iff.”

“ZETDC shall pro­vide firm and un­in­ter­rupted elec­tric­ity power sup­ply for the du­ra­tion of this agree­ment, sub­ject to sys­tem faults and emer­gen­cies which oc­cur out­side of ZETDC’s con­trol,” reads the let­ter.

Zim­babwe has been im­port­ing about $6,6 mil­lion worth of elec­tric­ity from South Africa’s power util­ity Eskom to bridge the elec­tric­ity deficit.

The coun­try owes about $10 mil­lion to Mozam­bique’s Hy­dro Cab­ora Bassa while the power util­ity is owed about $1 bil­lion by do­mes­tic and in­dus­trial con­sumers. @Bian­caMlilo

Mr Clif­ford Si­leya

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.