Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

***The views expressed in the articles published on this website DO NOT necessarily express the views of the Commercial Farmers' Union.***

Zesa loses US$642m annually

Zesa loses US$642m annually

Tuesday, 14 June 2011 22:47

By Zvamaida Murwira
ZESA Holdings is losing about US$642 million per year due to a poor billing 
system and load-shedding as experts call for an immediate end to the power 
utility’s monopoly if electricity supply is to improve.
Former Zesa acting chief executive officer Engineer Francis Masawi yesterday 
said the power utility was losing almost US$500 million because of 
load-shedding and at least US$100 million owing to its billing system.

He said Zesa’s billing system was in shambles.
Eng Masawi – who is now a consultant – said this during a public hearing 
conducted by the Parliamentary Portfolio Committee on State Enterprises and 
Parastatal management that convened a meeting of stakeholders to get views 
on the performance of Zesa Holdings.

The former Zesa boss, who was giving expert analysis to the committee on 
behalf of the Zimbabwe National Chamber of Commerce, said there was need to 
implement provisions of the Electricity Act that allowed more players in the 

He said Zesa generated 7,267 GiGawatts hours in 2010, which cost US$552 
million but it collected US$469 million, making a loss of US$83 million 
owing to billing challenges.
Energy demand for the year stood at 13,221 GW, but the power utility had 
generated 8,482 GW, leaving energy not served and load-shedded at 5,854 GW.

This resulted in the power company making a loss due to load-shedding at 
US$439 million.
The figure translates to a cumulative US$642 million loss.

“These are huge losses, which any normal business would seriously agonise 
over,” said Eng Masawi who is director of Energy and Information Logistics 
Group, a consultancy firm.
He said the existing transmission grid was a natural monopoly so the 
Zimbabwe Electricity Transmission and Distribution Company could remain 
Government owned.

New power companies will still have to use the national grid in transmitting 
their electricity to their customers, with Zesa charging them a small 
A US$600 million ethanol plant in Chisumbanje, a joint project between the 
Government through the Agriculture Rural Development Authority and Green 
Fuel Private Limited, will contribute 18,5 Megawatts.

Zesa Holdings and Green Fuel Private Limited have already signed an 
agreement to be implemented this month that will seed the bio fuel company 
supplying feeding 18,5 Mega-watts into the national grid.
“Bulk energy trading should be taken over by the private sector, retail 
supply business must be run by the private sector company so as to make the 
sector bankable,” he said.

Eng Masawi called for a national vision guiding both the public and private 
sector coupled with policy consistence focusing on wealth creation and not 
wealth distribution.
Government broke monopoly in the telecommunications sector, a situation that 
has translated into immeasurable benefits to ordinary people as more players 
came in.

Other stakeholders slammed Zesa Holdings for high tariffs, excessive load 
shedding, corruption by some its employees, failure to conduct proper meter 
reading, huge salary structures for senior managers among other shortcomings 
resulting in poor performance.

During the hearing chaired by Zvishavane – Runde MP, Cde Larry Mavhima 
(Zanu-PF) – councils requested for concessionary tariffs saying they were 
running “a special industry” of water pumping and se-wage reticulation.

During the meeting, local autho-rity representatives requested that they get 
concessionary electricity tariffs from the power utility for the-ir water 
pumping and sewer reticulation work.
Town Clerks’ forum vice chairperson, Mr Winslow Muyambi, ar-gued that they 
administered a special industry – that of water pumping and sewer 
reticulation that they provided as a social obligation.

“Water and sewer needs a special tariff because these are non-profit making 
“As local authorities we run these special industries 24 hours a day and our 
plea is that we have concessionary tariffs,” said Mr Muyambi who is also 
Norton chief executive officer.

Several stakeholders who included the Harare Residents Trust, Consumer 
Council of Zimbabwe and the Commercial Farmers’ Union took turns to berate 
Zesa Holdings for untenable tariffs that they said were not consistent with 
what people were earning.

They accused some Zesa Holdings employees of corruption saying consumers 
were asked to pay bribes in return for an illegal reconnection if power had 
been disconnected for non-payment.
CFU representative, Mr Mark Wil-son, complained that load-shedding by Zesa 
was seriously affecting win-ter wheat production.

“Any power cut or interruption will jeopardise yields. We are not afraid to 
pay what we have consumed but we are afraid to subside inefficiencies,” he 
Other ordinary residents complained that they could not afford electricity 
bills owing to the low salaries most people were getting.


107MW solar plant for Hwange

107MW solar plant for Hwange   12/7/2019 The Chronicle Pride Mahlangu, Business Reporter INDEPENDENT power producer, Power Ventures (Private) Limited, has applied for a licence

Read More »

New Posts: