ZETDC RESPONSE TO ELECTRICITY SUPPLY ISSUES IN THE FARMING SECTOR
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Minutes of the meeting held between Zimbabwe Energy Regulatory Authority (ZERA) & Zimbabwe Farmers on 05 October 2017 at 14:30 hours in the ZERA boardroom, 45 Century Towers, Samora Machel Avenue, Harare.
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1. Welcoming Remarks The Chairperson: a) Welcomed all members to the ZERA – ZFU, CFU, ZCFU, ZNFU and ZTA 2017 2nd Quarter meeting. b) ZERA’s position is that energy should be an enabler of economic development. c) ZERA recognizes the fact that Zimbabwe is an agro-based economy hence the need to continue engaging farmers and see how best all parties can work together towards the common cause. d) The objective of the quarterly meetings is to have discussions on farmers’ specific energy issues, give updates on developments in the sector, and get feedback from farmers.
2. Introductions All members introduced themselves.
3. Minutes of previous meeting a) Adopted as a true record. b) Proposed by A. Chingwe c) Seconded by E. Tome
4.Matters Arising a) Discussed during the meeting together with new agenda items.
5. Issues from ZFU, CFU, ZTA, ZCFU and ZNFU a) Implications of Kariba year 2015 low water issue, Farmers: i) Highlighted that historically they have debt as a result of failed crop due to power outages. ii) Urged ZERA to look into the issue that led to farmers incurring losses leading to perennial debts. iii) Proposed that the Government should carry the debt since crops failed as a result of intense power cuts during the year 2015. iv) Farmers indicated that failure to irrigate the wheat crop for 7 days or so lead to complete crop failure. Farmers are now hesitant to go into wheat farming as a result of that risk of power cuts.
v) The issue of perennial debt within the farming community is going to be an issue until there is some intervention. Farmers are prepared to team up with ZERA to go to the Ministry of Energy to make that presentation.
vi) Indicated that given the past experience, going forward farmers will require legally binding assurance of reliable power supply.
vii) b) Mr B. Mukwende of ZFU promised to provide statistics on power outages. c) Farmers requested that at every quarterly meeting ZETDC should be represented at senior level.
d) Vicious cycle: ZETDC failed to provide reliable power supply, farmers could not produce leading to failure to pay.
e) Of the billion-dollar debt, how much has been paid so far?
f) Farmers requested energy efficiency program specifically for farmers.
g) Long back farmers used to buy own meters that meet ZETDC specifications. Given that ZETDC are failing to meet demand of meter installation, farmers requested to buy own meters which meet ZETDC specifications.
h) Ministry of Agriculture is working on ease of doing business, ZERA is requested to forward a contact person who will sit on that committee.
i) Farmers are working out payment plans through TIMB and GMB.
j) Requested that ZERA come up with Energy Efficiency program specifically for farmers. k) Requested that ZERA engage farmers’ parent ministry for synergy. l) Requested for sitting allowance.
m)Perennial challenges: i) ZETDC promised to have regular meetings with farmers but that never materialized.
ii) Long delays in attending to reported faults by ZETDC. iii) Delays in meter installations.
iv) Unreliable, old and obsolete transformers & sub stations leading to faults.
v) Trees falling on electricity infrastructure, ZETDC take forever to restore power affecting farming activities.
vi) This year the bush vegetation is thicker, given that electricity poles are wooden, veld fires are likely to be a major challenge.
vii)Given that ZETDC is not coping with the demand of clearing way leaves. Farmers proposed that ZETDC come up with an arrangement that allow farmers to clear way leaves and compensate.
viii) Many farmers are sharing one meter and bill sharing is proving to be a great challenge leading to power disconnections. ix) Proposed that given the perennial meter shortage, arrangements be made for meters, to be available at some convenient point(s) for sale to members of the public.
x) On issues of vandalism – farmers think that no ordinary farmer/person can carry out such sophisticated and professional act. xi) At some point farmers engaged security guards to guard transformers and were told that it is not their responsibility and that they are not allowed to stand near ZETDC property.
xii)Informed the meeting that ZETDC – Farmers meetings are not planned and are held on erratic schedules.
xiii) Farmers need to engage ZETDC on the issue of debt collectors in order to check if the debt collectors are bona-fide.
xiv) New electricity connections – farmers have been waiting forever.
xv)Challenge of non-refund on ‘donated’ electricity infrastructure.
6. Update from ZERA a) Status of supply as at 08 June 2017: Hwange: 511MW Kariba: 90 – 738MW (Average 380MW) Harare: 0MW Mnyati: 0MW Bulawayo: 0MW Green Fuel: 2MW NRE: 9MW Pungwe A&B: 18MW Dema: 0MW HCB: 50MW Eskom: 50-400MW ZPC – NamPower: 0-80MW DAM: 0MW Total: 1459MW Forecast: 1525MW Shortfall: -66MW
b) Besides faults, we have experienced no load shedding for the past18 months. c) Power supply is expected to be steady this year given that South Africa has got excess power supply. d) Kariba extension project last reported to be at 80% completion stage. e) Dema now have EMA certificate and are now licenced by ZERA. f) Farmers are encouraged to have regular meetings with ZETDC as well as their parent Ministry so as to discuss issues of electricity supply. g) ZETDC is owed a lot of money hence struggling to replace obsolete equipment. h) ZERA’s position is that ZETDC must collect debt. i) ZERA is working with Tobacco Research Board on Energy Efficiency program specific to the farming community. j) The ZERA Technical Director is to come up with a specialized Energy Efficiency program for the farming community. k) The ZERA Senior Economic Regulation Manager will be seconded to represent ZERA on the Ministry of Agriculture ease of doing business committee. l) The Senior Economic Regulation Manager will provide the regional tariff comparison as well as general practice on energy provision to the farming sector. m) Farmers are encouraged to go green by embracing solar technologies. n) Farmers are encouraged to embrace efficient ways of farming. o) Miners have an arrangement with ZETDC where they buy their own transformers guided by ZETDC specifications. Farmers are free to engage ZETDC on a similar arrangement. p) ZETDC is in the process of replacing copper with aluminum in order to manage issues of vandalism. q) Farmers were informed that issues of illegal connections can lead to jail sentence if prosecuted. r) To minimize accidents, farmers are encouraged to get certified electricians to carry out electrical connections / wiring in the farming community. s) Informed of the banning of incandescent light bulbs effective May 2017. t) Farmers were informed that while they are clearing old electricity debt there is need to also pay current and cumulating debt. u) Encouraged farmers to go the pre-payment route as this assist in management and control of power bill. v) There is no expected electricity tariff movement until we get a report from the consultant. w) Public safety regulations in progress, soon to be out.
7. Way Forward a) In order to reach out to the greater farming communities and for the purposes of continuity during meetings it was agreed that each farmer union be represented by up to a maximum of four (4) members per union to ZERA quarterly meetings. b) Quarterly meetings between ZERA, ZTA and Farmer Unions are to be held preferably on Thursdays afternoon. c) Members are encouraged to confirm attendance before the meetings for planning purposes.
8. Date of Next Meeting a) Date of next meeting07 December 2017, ZERA offices at 14:30 hours.
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ZETDC RESPONSE WHERE APPLICABLE
Farmers legacy debt has to be settled and issues of power outages will be dealt with on an individual farmer basis.
ZETDC’s position is load shedding is an issue of the past and the country has gone through two winter seasons without load shedding and that is status quo and the modus operandus as we continue into the future. This position shall be cemented as well with the commissioning of Kariba unit 7 generator boosting generation by 150 MW by year end and another 150MW by end of 1st quarter 2018.
The current power import contracts are secure enough to guarantee reliable supply. The commission of the Kariba Extension Projects will also boost the reliability confidence levels
Outstanding statistics
ZETDC is committed to be providing a senior representative to such meetings in the future as requested.
Farmers should take advantage of the Command Agric scheme to capacitate and operate their farming activities like businesses. Debt settlement is on an individual basis based on agreed payment plans
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The introduction of smart metering in 2018 should enable farmers to manage their load in a more efficient way as the meters can shows real time consumption, enable Time of Use metering and control customer loads.
A facility for customers to buy their own meters from authorized dealers has been initiated and is set to have meters to be on the market in the 1st quarter of 2018.
ZETDC is also participating in the programme
The issue shall be addressed as in the ZETDC annual plans, stakeholder meetings are actually provided for so this simply shall be adhered to in the future.
ZETDC’s released a new customer charter for 2017 which has targets in terms the company’s commitment to Customer service.
Efforts are there to replace damaged and faulty transformers but this is currently hampered by unavailability of foreign currency. RBZ and some Banks have been approached to facilitate the importation of transformers.
Tree cutting within wayleaves is a planned maintenance activity that is to be done annually. Involvement of communities and land owners to improve the turnaround times is ongoing and encouraged. More education and engagement of communities will be done during the winter period in 2018
Fault resolution and reaction has generally improved in the year 2017 because of some initiatives which have been introduced and this trend is expected to rise.
Suggestion by farmers is most welcome and should be discussed at local level during farmers meeting and ZETDC as agreed.
Adherence to maintenance plans should ensure bush clearing is done on time thus address this concern. Efforts are underway to have contractors assisting in this exercise of which farmer groupings are welcome to augment this exercise as a contracted company/service provider.
Farmers are encouraged to apply for meter separation on the newly demarcated farms at their nearest Deports. Meters will be provided once the necessary paperwork and payments have been made.
Issue addressed in section 5 vii) …. (g)
Synergies with local resident farmers to safeguard electricity supply equipment is definitely welcome. All adverts on vandalism by ZETDC are actually encouraging the general public to play their part in protecting equipment against such acts of vandalism referred to. Isolated cases of misrepresentation of company position cannot be interpreted as policy. ZETDC welcomes any citizen/farmer to come forth and engage with appropriate senior officials in the company and an official working arrangement can be agreed upon.
Scheduled meetings shall be arranged at Depot and District level to ensure issues and concerns are adequately addressed
Farmers have to engage the Sales Executive at District Offices to discuss the issue of debt and clear matters of concern. Payment is required for all outstanding debt by way of a legally Court suctioned settlement plan.
This was mainly a result of the shortage of meters. Measures have been put in place which are set to address the issue to finality as mentioned in the above sections 5 vii….g
Amendments to the ZETDC policy on “donated electricity infrastructure” are at an advanced stage. This will result in some form of compensation being accorded to a customer engaged in such arrangements.
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