Zimbabwe power imports at risk
HARARE, ZIMBABWE – Feb 13 2012 18:14
Zimbabwe’s energy minister warned on Monday that the country risks losing
electricity imports from its major supplier if it fails to pay a $90-million
debt to Mozambique’s Hydro Cabora Bassa dam.
“That is one debt that we have got to service because if we do not service
it our major source of power will go away,” Elton Mangoma told a committee
of lawmakers.
Mangoma said the Zimbabwe Electricity Supply Authority (ZESA) has piled up
almost a billion dollars in unpaid electricity imports, unserviced loans and
outstanding contributions to a joint power project with neighbour Zambia.
“At this stage with the cash flows of ZESA there is no possibility of
re-paying them. We are not planning in the short-term to have them repaid
but that treasury when they are looking at their debt management will be
able to look at that.”
He said ZESA owes about $800-million of old loans, and $94-million in
electricity imports including about $90-million to Hydro Cabora Bassa, the
Mozambican hydroelectric dam that is its main supplier. It also owes
$70-million to Zambia.
Zimbabwe needs about 2 200 megawatts of electricity at peak but generates
just 1 300 megawatts, importing the remainder.
Mangoma said is owed ZESA $400-million in unpaid electricity bills by
consumers and announced plans to cut off defaulters.
ZESA plans to introduce pre-paid meters to improve its revenue and avoid
resorting to charges based on estimates.
Last year ZESA announced it would hand out more than 5.5-million
power-saving fluorescent light bulbs to households across the country to
curb consumption.