Mr Clifford Sileya
Bianca Mlilo, Business Reporter
THE Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has engaged industry to assist the power utility meet its foreign debt payment obligations in order to avoid load shedding.
ZETDC, a subsidiary of Zesa Holdings is responsible for the transmission, distribution and retailing of electricity.
According to a letter written to Confederation of Zimbabwe Industries (CZI) members by the CZI chief executive officer Mr Clifford Sileya, ZETDC has already set the terms of the agreement.
“ZETDC has met with CZI over efforts to ensure continued power supply to industry amidst payment challenges being faced. As you may be aware, Zimbabwe is importing a significant amount of its power from South Africa and Mozambique, mainly due to depressed generation from Kariba,” reads part of the letter.
Mr Sileya said there have been challenges in mobilising adequate foreign currency to pay for power imports and ensure continued supply of electricity.
“To avoid losing the power imports, ZETDC has made an appeal to business to assist by entering into arrangement to assist ZESA in meeting its foreign payment obligations in order to avoid a possibility of load shedding.”
The payment terms according to ZETDC include an accrual of 10 percent interest on the prepayment.
The client, which is industry, would also be required to make a foreign currency prepayment to accounts as instructed by the power utility.
“Amount prepaid plus interest to be converted at current tariff to credit energy units. The consumption in excess of the units credited shall be paid by the client to ZETDC at the prevailing tariff.”
“ZETDC shall provide firm and uninterrupted electricity power supply for the duration of this agreement, subject to system faults and emergencies which occur outside of ZETDC’s control,” reads the letter.
Zimbabwe has been importing about $6,6 million worth of electricity from South Africa’s power utility Eskom to bridge the electricity deficit.
The country owes about $10 million to Mozambique’s Hydro Cabora Bassa while the power utility is owed about $1 billion by domestic and industrial consumers.
— @BiancaMlilo