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'Severe Load Shedding Looming'

'Severe Load Shedding Looming'

ZESA Holdings executive chairman, Sydney Gata, has warned of imminent debilitating power cuts due to the non-cost reflective electricity tariffs which threaten the power utilityโ€™s viability.

Speaking to Business Weekly on Thursday, Gata said ZESA last had a viable tariff in 2019 and the current tariff is not sustainable. He said:

We are heading for another severe load shedding. How long can you stay in business when you produce at a cost nearly twice the price you are selling at?

Gata said ZESA is importing electricity at a cost of between US8c and US9c per unit while the cost of producing locally is US9.5c.

ZESA is supplying power to households at far less than the cost of importing and producing, that is, US6c per unit.

Zimbabwe needs about 1 600 megawatts but generates an average of 1 100 MW and reduces the deficit with imports from South Africa, Zambia and Mozambique.

Chinaโ€™s Sino Hydro is currently building two more units, also known as 7 and 8, at Hwange Thermal Power Station but the project was delayed by six months due to COVID-19.

Gata also revealed that the Government is reluctant to approve a new tariff that will ensure that ZESA meets the expectations of its customers. He said:

Because of that, we had elaborate discussions (with the Government) to have interim support in the form of a viable tariff (to keep running) but there is no coherent position.

We need a maintenance budget and (funds) to connect new customers but we cannot because of the sub-economic tariff.

Even though we have recommendations (on viable tariff structures) by a number of consultants, that has been ignored. We last had a viable power price around 2019.

The last power price review was in January 2022 when the Zimbabwe Energy Regulatory Authority (ZERA) increased electricity tariffs by 12.3 per cent.

More: Business Weekly


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9 Comments

nc 1ย month ago

he's saying let's go back to USD simpuru


Hercules 1ย month ago

This Regime is worried about winning elections only.Everything else means nothing to them.


RTGS 1ย month ago

Rtgs is the problem


Chawabvunza 1ย month ago

Sydney Gata is well versed in ZESA issues. He once held the same post under the first administration, the Old People's Home. Electricity is very important in our homes and companies. I urge Mr Gata to continue talking to government until he achieves what he wants government to do for ZESA.


yeu 1ย month ago

Gata imbavha check his corruption scandals abt Zesa prepaid metter

anogona kusiya achera makomba oenda gore rose haabatiki
till ppl fall in th trap

gata haana deal uye he was reinstated as a result of being in bed with first family

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MBINGA 1ย month ago

My whole mansion is solarized!!!!


๐Ÿคฃ 1ย month ago

Hey!!!

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