Zesa will this week embark on a nationwide exercise to cut power supplies to thousands of consumers owing the parastatal amounts above US$500 despite previous assurances that the debts would be settled through part deductions from prepaid electricity recharge tokens.

ELECTRICAL cuts on the way

Since the Zesa switched over to prepaid meters, the parastatal is owed about US$1,1 billion and the move is meant to recover at least US$80 million monthly.

The Sunday Mail understands that debtors already using prepaid meters will be cut off from the stations’ system whilst those using the post-paid system will be disconnected from power lines.

Zesa spokesperson, Mr Fullard Gwasira said despite the prepayment system guaranteeing the power utility steady income inflows, debt recovery has been affected since customers were paying for the energy they would want to use.

“It is important to note that ZETDC gave a reprieve to customers by offering 30 percent amortisation for all purchases in 2009,” he said.

“But a customer owing $1 000 and buying electricity for $50 only pays $15 towards the debt per month.

“This means that this valued customer will need over five years to settle the debt.

“Affected customers are urged to engage the power utility to negotiate payment plans that would be loaded in the prepaid vending system. The system will only allow token purchases that meet the payment plan.”

Mr Gwasira said since the inception of prepaid meters, the power utility had only managed to recover 18 percent of the debt.

“ZEDTC has since realized $56 million through the prepaid electricity platform,” he said.

ZESA introduced electricity prepaid meters in 2012 in a bid to inculcate a culture of energy saving and to ensure guaranteed cash inflows as consumers pay in advance.

In 2013, the company cancelled customers’ debts, following recommendations by the Government.

The move benefited all domestic customers with a debt relief of $160 per household while customers on prepaid meters had their amortised outstanding debts adjusted.

ZESA has installed 550 000 prepaid meters to date with a total of about 100 000 domestic customers still on the post-paid system.

The power utility says the arrears settlement will enable the smooth implementation of power supply expansion projects at both Kariba and Hwange power stations.