News:Load shedding fears as Zesa reveals it owes Mozambique’s Hydro Cahora Bassa $10 million
<vote /> Zesa owes Mozambique’s Hydro Cahora Bassa (HCB) $10 million, raising fears among stakeholders that the figure could balloon to unprecedented levels witnessed four years ago if it is not cleared on time. In 2012, the power utility struggled to clear the $76 million it owed the Mozambican power utility. Zesa imports 50 megawatts from Mozambique.
Zesa spokesperson Mr Fullard Gwasira said they were working on modalities to clear the debts even though earlier reports had indicated that the imports are pre-paid. He said
The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has a liability towards Hydro Cahora Bassa (HCB) of Mozambique of about $10 million in power imports. The credit control measures currently being implemented by the utility as a result of the absence of a 2016 tariff adjustment, and priority support from the central bank will ensure that the debt is amortised quickly due to the strategic nature electricity has to national security. The ZETDC also has a good credit rating with all its external suppliers of power and is a prime customer due to the availability of hard currency in the form of the US dollar, while it also engages suppliers consistently to ensure that security of electricity supply is maintained.
Zimbabwe Energy Regulatory Authority (ZERA) recently shot down a proposal by Zesa to increase electricity costs by 49 percent, declaring that the average power tariff should remain pegged at 9,86 cents per kilowatt per hour this year. The power utility had proposed that the average tariff be 14,69 c/kWh.
Read More: The Herald
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