ZESA grapples with ZiG2,8 bln debt from industry

ZESA Holdings has issued a stark warning about the ongoing power supply crisis in Zimbabwe, citing a combination of increased demand, limited generation capacity and a significant debt burden.

In a press release, ZESA Executive Chairman, Dr. Sydney Gata, highlighted the challenges facing the power utility.

“To mitigate the demand and supply gap, we have had to resort to imports from other regional utilities,” he explained. “However, these imports have been reduced due to our inability to service the arrears.”

The company is owed a staggering ZIG 5.7 billion by various customers, including domestic households, industries, commercial entities and government departments. Industry is the biggest culprit owing 50 percent of the debt.

This significant debt has strained ZESA’s financial position, limiting its ability to invest in infrastructure and meet its operational costs.

Despite the supply shortages, ZESA has been forced to export electricity during non-peak hours to raise foreign currency. These funds are used to service critical obligations, such as loan repayments, water bills, coal purchases, and infrastructure maintenance.

Dr. Gata emphasised the urgent need for customers to pay their electricity bills promptly. “We have embarked on a disconnection blitz to ensure that those who pay for electricity get the service due to them,” he stated.

“This will also see an enhanced installation of prepaid meters across the customer segments.”

In addition to the debt burden, ZESA has also been grappling with aging infrastructure challenges. The Hwange Power Station, Zimbabwe’s largest power plant, has experienced several outages and technical issues, further exacerbating the power supply crisis.

However, ZESA is undertaking significant efforts to improve the situation. The company is implementing measures to increase power supply, including additional imports and interventions to restore capacity at Hwange Power Station.

Furthermore, the ongoing Repowering Programme at Hwange is expected to enhance the station’s reliability and output.

Despite these challenges, Dr Gata said ZESA remains committed to providing reliable electricity to the nation. The company is urging customers to cooperate by paying their bills on time and reducing their electricity consumption during peak hours.-ebsinessweekl