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ZESA Speaks On Measures Being Taken To Address The Power Crisis

1 year agoSun, 02 Oct 2022 06:52:34 GMT
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ZESA Speaks On Measures Being Taken To Address The Power Crisis

The Zimbabwe Electricity Supply Authority (ZESA) has spoken on measures that are being adopted to address the power crisis that has seen the local power utility rolling out increased load-shedding nationwide lasting about 16 hours a day.

Responding to questions from The Sunday Mail’s Senior Reporter Leroy Dzenga, the ZESA stakeholder relations department outlined the measures as follows:

Way forward:

ZESA said the quickest solution to power shortages lies in a cost-reflective tariff.

Kariba Hydro Station:

They said reliance on Kariba is not advisable because it is dependent on rainfall performance. The lake level is currently at 18,27 percent full and without any meaningful rainfall in the catchment areas of the lake, there will soon be water rationing.

Imports:

ZESA said it has firm contract agreements with the following sources, whose capacities total 300MW:

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Eskom (South Africa): 100MW, but when SA is load shedding, this is reduced correspondingly. Zesco (Zambia): 100MW. This is an upfront payment import. HCB (Mozambique): 50MW EDM (Mozambique): 50MW Additional non-firm power can be provided by the same sources.

ZESA said foreign currency received from exporting customers remains inadequate. Customers pay 60 percent in foreign currency and 40 percent in local currency and ZESA says converting the 40 percent local currency to foreign currency is difficult.

The power utility also said foreign currency receipts are also used to service repayments on other facilities like the Afreximbank facility and fund critical spares and foreign insurance, among other things.

Demand:

ZESA said the peak demand for 2022 was about 2 000MW when we factor in the loads that were out due to faults and other technical issues. Demand dropped in the post-winter period and is currently about 1 750MW.

Zimbabwe’s independent power producers (IPPs) contributed 98.51GigaWatt Hours (GWh) to the national grid in the first quarter of 2022.

The IPPs are contributing 98.51MW capacity to the 1 450MW being generated by Zimbabwe Power Company.

Mitigation

◆ ZESA has secured 300MW of power from EDM, HCB, Eskom and Zesco.

◆ ZESA has facilitated the creation of an Intensive Energy Users Group (EIUG), which is meant to procure its own power requirements from the region and from local suppliers. 

◆ Zesa continues to engage relevant Government ministries to have the company capacitated to raise foreign currency to pay for imports.

◆ ZESA continues to engage relevant Government ministries and the regulator to have the company capacitated to maintain a cost-reflective tariff and also maintain it. This will allow ZESA to pay for its obligations and not accumulate debt, and in the process become credible.

◆ ZESA is on a debt-collection drive to ensure it gets due payments in good time for power delivered to customers.

Vandalism:

The national power utility is losing at least US$4 million per year to vandalism.

In the first quarter of 2022, ZESA recorded losses of US$904 000, and recorded over 500 cases of vandalism. ZESA’s mitigatory measures include:

◆ Target hardening, which involves strengthening the security of electricity transformers.

◆ Lobbying for amendment of legislation like the Copper Control Act to include punitive sentences.

◆ Lobbying for a review of regulations on dealing in scrap metal, including withdrawal of export licences.

◆ Employment of technology in anti-vandalism drive, through surveillance systems, internet of things, starting with anti-intrusion technology, and joint anti-vandalism community engagement programmes, among others.

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