Zesa’s poor debt management costly

millions of dollars owed by its customers, industrialists and residents associations said yesterday.
Industrialists warned that unless Zesa implemented the prepayment system, it will be difficult for the power utility to offset its foreign debts.

This comes at a time when Energy and Power Development Minister Elton Mangoma, warned defaulters to brace for “massive” power disconnections.
Zesa is battling to clear the US$76 million it owes Hydro Cabora Bassa of  Mozambique.

Confederation of Zimbabwe Industries president, Mr Joseph Kanyekanye, yesterday said Zesa had no clear debt collection strategies other than the “unpopular”  disconnections.
“If this dream is ever to be achieved (offsetting the debt), Zesa should correct the anomalies in terms of tariff structure.

“They have to accelerate the prepayment system and this is the only way they can be able to recover money in areas where they are failing to collect money. If they had a proper debt management system some people would not be owing them as much as US$400 000,” he said.

He said Zesa was surviving on money being paid by industry.
“If you look at the accumulations, you will find out that domestic consumers contribute a lot to the debts as compared to industry,” he said.
“They just should collect outstanding amounts without sparing anyone because at the end of the day industry, which is vital in the economy, is the one that suffers,” he argued.

Domestic and commercial electricity consumers owe Zesa about US$550 million.
Harare Residents Trust co-ordinator, Mr Precious Shumba, said to recover its money, Zesa should come up with a concrete plan, backed by legislation that ensured that consumers were treated equally.

“We are alarmed at the level of ad hoc management of a strategic ministry such as the Power and Energy Development Ministry, particularly the administration of Zesa Holdings,” he said.

“The absence of a clear monitoring mechanism has created a situation where senior Government officials have refused to honour their debts, fully aware that Zesa will do nothing to them.
“Apart from power disconnections, alternative mechanisms of raising revenue should be pursued than the current one of targeting poor consumers who owe little amounts.

“If senior Government officials have not settled their debts, Zesa should not expect the ordinary consumers to be in a hurry to settle their debts.”
Bulawayo Residents Association chairman, Mr Winnos Dube, said inefficiency within Zesa had resulted in the power utility accruing a huge foreign debt.
“Minister Mangoma should be appreciative of the situation on the ground,” he said.

“People are struggling and Zesa are not the only service provider. They should just find a strategy of recouping their money than inflicting the pain on poor individuals instead of punishing those with huge debts.”
Minister Mangoma said Mozambique had agreed to increase power supply in the interim if Zimbabwe cuts down its debt to below US$40 million.

He said to achieve this, disconnections were the only viable option. Zimbabwe requires about 2 200 megawatts daily, but generates only 1 300MW. The remainder is met through imports from Mozambique, Zambia and the Democratic Republic of Congo.
The country is getting 25 MW from Mozambique.

Farmers’ unions recently argued that they could not pay Zesa bills monthly given that they receive their payments once in six months. 
Some of the farmers who reportedly owe Zesa thousands of dollars have a thriving crop worth millions of dollars on their farms.

 

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