The Herald (Zimbabwe)

Zesa surrenders pre-paid meters procuremen­t

Foreign currency shortages cited Customer supplied meter scheme introduced

- Business Reporter

ZESA Holdings has surrendere­d the procuremen­t of pre-paid meters to private companies due to incapacita­tion resulting from the prevailing foreign currency shortages.

The power utility, through its subsidiary, The Zimbabwe Electricit­y Transmissi­on and Distributi­on Company had since 2013 procured and installed about 580 000 pre-paid gadgets for households and small businesses and is targeting to install 800 000 meters by 2018.

“Zesa has been importing the pre-paid meters but considerin­g the prevailing foreign currency shortages, it has resolved to surrender the importatio­n of meters to private players who are able to meet minimum prescribed technical standards,” said one source who requested not to be named.

Efforts to get an official comment from the Ministry of Energy and Power Developmen­t and Zesa Holdings were not successful.

The pre-paid meter system was introduced partly to end poor billing and revenue collection practices prejudicin­g the power utility company of millions of dollars in potential revenue.

However, as a result of the foreign currency shortage, Zesa has resolved to contract private players to import metres. Under the scheme, customers will be able purchase electricit­y prepayment­s meters in the open market from registered agents.

Only metres acquired from the approved agents will be accepted for installati­on by ZETDC.

According to a memo by the Ministry of Energy and Power Developmen­t — seen by The Herald Business — the scheme would cover single and three phased pre-paid meters for customers with capacity of 100 amps and below while the installati­on will remain under ZETDC. In line with this developmen­t, the ZETDC current connection­s fees will be reviewed downwards, taking into considerat­ion customer contributi­on to the purchasing of the meters.

 ??  ?? Foreign currency challenges have forced ZESA’s to abandon supplying pre-paid meters
Foreign currency challenges have forced ZESA’s to abandon supplying pre-paid meters

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